Our colleagues at the TPA have campaigned successfully against union subsidies. This means that the number of civil servants working for the unions at the taxpayers’ expense will now be…
Taxes
Swedbank has calculated what Swedes already knew: taxes are by far the largest budget item for any household. An individual earning SEK 25,000 per month pays SEK 17,500 in taxes (of which SEK 6,100 to the municipality, SEK 4,300 in pension dues, SEK 3,380 to the health care authority and SEK 3,360 to the central government).
As tax revenues are flooding into the Treasury, the German taxpayers’ association (BdSt) has asked the federal government to axe the “stealth” tax increases and to cut spending further. Current estimates show that tax revenues will be substantially higher than previously thought: a record 600 billion euros in 2012 and 700 billion euros in 2017.
The BdSt considers that some 27 billion euros could be saved in the federal budget.
Jean-Philippe Delsol
Tax lawyer, deputy director of IREF
The government’s goal of reducing the budgetary deficit to 3 per cent of GDP is commendable, even though such a deficit will inevitably increase the French public debt as growth will be low or even close to zero. However, the tools applied are both unjust and inefficient.
An old American joke has it that hell is where the Swedes are in charge of entertainment. But the last laugh in fiscal policy matters in Europe will probably go to Swedish legislators as they vote for implementing a reduction of corporate income taxes (CIT).
The hyped rhetoric following the future Belgian exile of LVMH owner Bernard Arnault is no surprise to anyone well-versed in the French psyche.
The Taxpayers’ Alliance has published a summary of its final report, proposing a Single Income Tax to tax streams of income once. As stated by Allister Heath, Chairman of the TPA Tax Commission, “the old order is broken and needs radical reform. But we are also realists: our proposals, while far-reaching, are practical”.
The European economy is under threat. But it is not by producing another treaty that it will be saved. In order to restore the trust required to produce economic progress, the states first must enforce the existing treaties, in particular the Maastricht rules on a 3 per cent deficit and a debt of 60 per cent of GDP. If you support this position, please send us a message by clicking on contact@irefeurope.org
Advocates of redistribution often reckon that soaking the rich would eliminate poverty. Consider the following: the 10 largest fortunes in France amount to 14 per cent of GDP, or 272 billion euros. If we imagine a one-off redistribution of this wealth to the 8.2 officially poor, the sum awarded to each would be some 33,000 euros. Not bad, but certainly not enough to retire on.
How far should redistribution go? Who should pay for it and how? What is the proper role of the State and what is better left to private initiative? Should insolvent banks be bailed-out? Is it better to tax individuals when they consume or as soon as they earn their income? Should we rely on taxation to bent individuals’ behaviour towards a cleaner, safer life (sin taxes and fat taxes)? Every one has—or should have—an opinion on those important questions.