Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The Irish Times is reading the small print too:

EU mutual debt plan will come with a price tag for Ireland - P.Leahy

But like everyone else, Ireland will have to accept things we don't like if the plan is to work. The small print of the proposals stipulates that the grants to states will only be made in return for commitment to follow "sound economic policies and reform agendas".

In addition the Franco-German plan requires tax reforms that will improve the "framework for fair taxation", in particular of the digital economy. This is code for pressure on Ireland's tax revenues from digital multinationals. Some complex and difficult trade-offs await the next government.

by Bernard (bernard) on Sun May 24th, 2020 at 04:18:55 PM EST
[ Parent ]
Well obviously the Commission will want its grants to further "sound economic policies and reform agendas", who could possibly object to that? The issue is who gets to decide what is "sound", and the Commission has tended to be more progressive than ordoliberal ideologues would like.

Ireland has long accepted that its tax competitive advantage will be eroded with time, and the case for taxing the Amazon's of this world on their sales in each country - like every bricks and mortar retailer - is simply unanswerable, as even UK Tories accept.

The biggest obstacle to that is Trump, as all the big global on-line operators are US, and so taxing them on their sales in each market inevitably reduces their profitability and tax yield to the US.

I have been surprised that EU members haven't been more assertive in imposing them in retaliation for Trumps tariff impositions, but perhaps the only thing holding Trump back is the fear that they will.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun May 24th, 2020 at 10:20:44 PM EST
[ Parent ]
"Tax yield to the US"

This is a joke, right?  

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sat May 30th, 2020 at 04:49:56 PM EST
[ Parent ]


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