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Tuesday, June 7, 2016
EU PREPARING TO LEVY GLOBAL TAXATION
In about two weeks on June 23, Brits will vote in the EU or Brexit referendum to decide whether the UK should leave or remain in the European Union.
Before they vote, Brits should really heed the information below. If you have family, friends, or acquaintances in the UK, please send this post to them or share on social media.
The European Union is a confederation of 28 countries, each of which, being independent sovereign entities, has its own taxation system.
As described by Simon Black of Sovereign Man, some EU countries, such as Belgium and France, have punishingly high tax rates. Belgium’s is the highest, where:
The tax rate is as high as 50% if you earn even a modest income.
Contributions to Social Security are 13% for employees and 35% for employers.
21% Value-Added Tax.
Businesses are subject to a 30% corporate tax rate, a 3% “crisis surcharge”, and a 5% “fairness tax”.
Altogether, the Belgian government’s tax revenue eats up about 45% of GDP, which means that the government takes almost half of all economic output.
In contrast, Estonia and Ireland have some of the lowest tax rates in the EU:
Estonia’s profits tax is 0%! And yet the government consistently runs a budget surplus.
Ireland has had a low-tax regime of just 12.5% on corporate profits for years, and recently announced a new tax regime for certain companies as low as 6.25%. These low tax rates have attracted substantial investment (and jobs) from huge multinational companies, all of which has boosted the Irish economy.
Black observes: “So the Irish government essentially takes a small slice of a rapidly expanding corporate pie, as opposed to Belgium and France’s huge slice of a shrinking pie. It’s not rocket science. If you create reasonable incentives, businesses will invest, the economy grows, and everyone wins.”
But the European Parliament means to put an end to some of its member countries’ low tax rates and tax havens through something called a Common Consolidated Corporate Tax Base, which in effect means the governments of EU member states will no longer have control over its tax systems.
On May 27, 2016, the European Parliament (of unelected representatives) released details of a tax directive that will create a pan-European tax system, complete with a brand new Tax ID number for every European which, if the EU has its way, would be expanded into a Global Tax ID number for everyone in the world.
The proposal ostensibly is to combat “tax avoidance” by multinational corporations — the boogeyman — and to enforce “fairness of tax systems” in the interest of “social justice”. But its real purpose is to increase taxes across the board if the EU thinks a member state (like Ireland) doesn’t charge “enough” tax.