Confusing but positive development
This article in the Wall Street Journal left me somewhat confused:
BERLIN — Europe’s major economies are competing with one another to cut corporate taxes as they fight to attract and keep investment, fueling a trend that has taken Europe’s corporate-tax rates below those of other regions.
Nominal tax rates on corporate income in the European Union average 26%, compared with 30% in the Asian-Pacific region and nearly 40% in the U.S. The latest moves by European governments suggest business taxes in the EU will fall further in coming years.
Firstly - if the European countries recognize the benefits of reducing and simplifying the tax code why not making the jump toward flat-tax rate.
Secondly, and more interesting for me, is the question why not doing the same for non-corporations? if the purpose of taxes in mainly social-democrat Europe is to redistribute wealth, isn’t cutting taxes for the people who are suppose to be the greatest beneficiaries of the tax collected?
I guess this is a typical case of ideology meets reality, and since the progress is overall positive I shouldn’t complaint too much. Now we need to wait for the effect to get across the ocean…
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Rogel @ April 18, 2007
oh man rogel.. my mom complains ’steen en been’ about all the taxes that the ordinary person has to pay in the Netherlands. I tell you, if people realized how much and on how many things people pay taxes in Europe, they’d stop complaining here about taxes being too high..
interesting article..I must have missed it in the WSJ or was the article only online?
Ingrid
Stop complaining? you want to take the joy out of our life?