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without industrial policy

(I mean, logically you can't. In the real world, you can, of course... just like you can have a single currency without economic government... [but the consequences will kill you])

... But anyway, the point I wanted to make is this: if you unify European taxation, that does NOT necessarily imply uniform tax rates.

It would be absolutely logical that "peripheral", or "developing", economies should have lower company tax rates than the "powerhouse" economies. Not as a matter of undercutting each other, but as a matter of industrial policy.

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by eurogreen on Fri Feb 11th, 2011 at 11:11:16 AM EST
[ Parent ]
I would support the harmonisation of tax systems, but not tax rates.  I.e. common accountancy standards, common definitions of "profits", common definitions of write-offs - e.g. for R&D - so that companies locating in the EU can use the same accountancy systems to settle their tax liabilities in all Members states - even if (e.g.) Germany charges 30% and Ireland 15% on a common definition of what the taxable income is, and which income arises in Germany and which in Ireland.

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by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri Feb 11th, 2011 at 12:27:54 PM EST
[ Parent ]
If we get a definition of which income arises where and tax it where arise, then I think the problem is solved and where headquarters are will be a question of building an efficient headquarter, not dodging taxes. Then corporate taxes could very well be different in different countries.

If we do not get such a definition, my suggestion would be a federal corporate tax, the money from which (actually not really, but similar amount) is handed out equally to the citizens of EU. This would always benefit the poorer members (as 100 euros in Roumania buys more then 100 euros in France), while making sure corporate tax can not be dodged.

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by A swedish kind of death on Sat Feb 12th, 2011 at 07:33:36 PM EST
[ Parent ]


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