Member-only story
Two pieces of work have led me to look at the EU’s tax rasing powers. The first is attempting to work out which of the COFOE’s proposals require treaty change; several want to use tax and subsidy policies to encourage behavioural change, from adopting more green friendly agricultural & transport polices to behaving as better corporate citizens with respect to personal privacy. This is currently not permitted; the EU raises its money from contributions from member countries; import duties on products from outside the EU; a new contribution based on non-recycled plastic packaging waste; and fines imposed when businesses fail to comply with EU rules.
I was also pointed at the EU’s NextGenerationEU which is an expenditure programme and the idea that it was the tipping point into a fiscal union. I am not sure because the EU’s tax raising powers currently prohibit the taxation of people or companies. They are similar to the pre 16th Amendment United States; which also could not tax people or companies. The US Federal Government could not have become the financial behemoth it is today without income tax and the end of a reliance on import duties also had benefits in terms of GDP growth and anti-corruption, This led me to consider the proportion of Govt. income raised through income tax versus other sources.
