\u2018Very bad\u2019 idea<\/p>\n
The idea of taxing turnover instead of profits is \u201cvery bad,\u201d said Zsolt Darvas, a senior fellow at think tank Bruegel. One problem is that it hits sectors with very different profit margins. <\/p>\n
Another issue is that the tax is regressive, putting firms with different financial conditions in the same basket. \u201cIt is not correct, it\u2019s just not fair,\u201d Darvas said. \u201cIt is probably the worst option.\u201d<\/p>\n
Many also objected to the fact that it seems diametrically opposed to the goal of industrial competitiveness. Von der Leyen has made \u201ccompetitiveness\u201d the flagship brand of her second term, and the tax on corporations is a political hard sell. Especially in Berlin.<\/p>\n
Germany is going through a period of economic stagnation following a two-year recession. Its economic doldrums are forcing the government to rethink its fiscal stance completely in the middle of a trade war with the U.S., putting its export-driven economic model even more at risk.<\/p>\n
Officials from the Economic Affairs Ministry had already warned that their assessment of the EU budget revenues would depend on how the competitiveness of the European economy is treated.<\/p>\n
That\u2019s not to say there\u2019s no rationale for the tax. Companies from both Europe and third countries benefit from trading inside the bloc, and as French lawmaker Fabien Keller from the liberal Renew group put it,\u00a0\u201cthat is directly linked to an EU public good: the single market. Without the EU, no seamless\u00a0trade on the biggest\u00a0single\u00a0market in\u00a0the world.\u201d<\/p>\n
But with such vociferous opposition from member countries and lawmakers, von der Leyen\u2019s proposed tax has little hope of surviving in its current form.<\/p>\n","protected":false},"excerpt":{"rendered":"\u2018Very bad\u2019 idea The idea of taxing turnover instead of profits is \u201cvery bad,\u201d said Zsolt Darvas, a…\n","protected":false},"author":2,"featured_media":273440,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[1194,10683,6641,2000,7335,299,5187,1699,1945,1824,2199,1200,3053],"class_list":{"0":"post-273439","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-budget","9":"tag-business-and-competition","10":"tag-competitiveness","11":"tag-eu","12":"tag-eu-commission","13":"tag-europe","14":"tag-european","15":"tag-european-union","16":"tag-friedrich-merz","17":"tag-germany","18":"tag-italy","19":"tag-tax","20":"tag-the-netherlands"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114877209261290128","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/273439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=273439"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/273439\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/273440"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=273439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=273439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=273439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}