Direct EU Taxation

No, this really isn\’t a good idea.

The European Commission is to demand direct taxation powers to generate one-third of the EU budget by 2020 under proposals that will impose £3 billion a year in \”stealth taxes\” levied on Britons.

Putting a bureaucracy in charge of how and how much taxation there is to feed that bureaucracy simply isn\’t a good idea. It misses that essential part of the process, the ability to throw the bastards out. You know, that democracy bit?

It\’s taxation without representation, pure and simple.

There\’s also a detail unappreciated:

to shift EU funding from national government transfers to EU-wide taxation on energy, travel or banking………………new levies on financial transaction and VAT……………in return for the new European taxes on consumers or banks.

Note again:

Officials are confident that another 21 per cent can be found from energy, greenhouse gas aviation and financial taxes, new taxation that can be sold because the revenue would also bring in income for national governments as well as raising money for the EU.

\”It would not be about EU taxes but making polluters of the environment pay or the nasty bankers contribute to paying for the problems they created,\” said the source.

But as we know, taxes on financial transactions are not paid by banks. They are paid by consumers of financial services.

So everyone will, again, be told that it\’s those bastards over there paying while in fact it is their very own pockets being picked.

So it\’s a bad idea in general and a bad idea in specific.

4 thoughts on “Direct EU Taxation”

  1. “Officials are confident that another 21 per cent can be found from energy, greenhouse gas aviation and financial taxes …”

    I wonder if they have done an Oxfam in forecasting and unreasonable future without feedbacks.

    As we are currently seeing with carbon prices and future expected revenues people are responding to taxes and prices. The tax revenue they have forecast may not be sustained

  2. Offshore Observer

    This would be a fundamental breach of the separation of powers (you know that matter so fundamental that it has required the judicial committee of the house of lords to be abolished).

    Taxation can only be imposed by an elected parliaments. In the UK that is the house of commons, in the US it is the congress, in Australia it is the house of representatives etc etc.

    If the EU seriously wanted to impose direct taxation to fund the operations of the union then the only bodies who should be constitutionally entitled to do that is the European Parliament or the European Council as they are the only bodies with a modicum of democratic legitimacy.

    The parliament would be a dumb idea and the European Council simply would not agree to give up tax sovreingty. I also suspect that introducing an EU wide system of taxation might kill of future expansion plans.

Leave a Reply

Your email address will not be published. Required fields are marked *