Aha! So that’s the game plan!

Britain and other European countries should surrender control over their own tax rates to Brussels to help tackle tax evasion, the scandal-hit president of the European Commission has suggested.

Sod off Swampy is, I think, the correct response here.

For of course if they do this then we lose all of the beneficial effects of tax competition.

“Tax evasion sometimes happens because of the interaction between very divergent national tax. In accordance with the law you can create a situation.

“The result is very low taxation of companies. This has to be avoided.”

Corporate taxation should be zero in any case. And Fritz Bolkestein quite deliberately set the system up so as to increase tax competition in order to bring down the harmful rates of such corporate tax.

7 thoughts on “Aha! So that’s the game plan!”

  1. Juncker doesn’t mean this. He’s goading the big countries who are bullying the smalls about tax.

    All member states offer tax breaks breaks and they don’t want to give up this power.

    They should stop bullying Luxembourg Ireland Gibraltar etc though

  2. Tax evasion is NOT caused by divergent national tax rates. Avoidance might, but evasion doesn’t. Anyone who doesn’t know the difference isn’t fit to lecture national governments on their tax regimes.

  3. Steve Evans has it. This is just retaliation. The big countries will say “Of course not!” then he can say “piss off and leave me alone about Luxembourg, then.”

  4. Luxemourg has the second highest GDP per capita behind Qatar – which given the industry and agriculture in the Grand Duchy leaves something of an arithmetic “bust”.

    It is also the base for The European Court of Auditors who keep such a watchful eye on EU finances.

    They are bent and simply looking after business…. like a tapeworm.

  5. I suspect that handing over control of rates would just be the first step and the “game plan” is control of revenues.

Leave a Reply

Your email address will not be published.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