You Didn’t Earn That

The European Commission has criticized seven member states for “aggressive” tax practices, whereby governments try to undercut others to attract multinational companies.

Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation, and Customs doesn’t like competition; he actually thinks it interferes with the “integrity of the European single market.”

[T]hese practices have “the potential to undermine the fairness and the level playing field in our internal market and they increase the burden on EU taxpayers.”

This, of course, is nonsense on a number of fronts.  The Commission has yet to justify the high taxes of those member nations that are so put upon by the others’ low(er) tax rates.  The Commission has yet to say how competition is disintegrative.  The Commission has yet to explain why the playing field cannot be leveled by those high-tax nations lowering their tax rates and thereby also lowering the burden on those EU taxpayers who are citizens of those high-tax members.  The Commission has yet to demonstrate that tax competition creates, in any way, an uneven playing field—especially since the varying national tax rates are fully within the control of those nations.

Besides, that money belongs to EU Governance, not to the people who earned it or whose enterprises earned it.  And you member nations: your sovereignty belongs to us.

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