This infographic is interesting for a number of reasons, not least for suggesting a loss to corporate tax avoidance in the EU greater than that I have suggested. It was published by the European Parliament:
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
The EU should aim to level the playing field for corporation tax – at 38% as a minimum!
Why 38% as a minimum? What possible basis?
It is unearned income (money making money). The marginal tax rate on earned income (IC and NI) is minimum 31%. That’s the justification.
Tax incidence anyone? Who will pay the additional CT (assuming all else remains constant)?
Carol – I’m struggling to understand what you are saying here. I know many people who run their own companies and to suggest their profits are ‘unearned’ would be laughed at by them. They all work jolly hard. Many of them were previously self-employed and then incorporated. Are you really saying the act of incorporation suddenly makes it easier to earn profits? That makes no sense at all.
I also can’t see the relevance of 31%. The basic rate of income tax is 20%, employees’ NIC is 12% and employers’ NIC is 13.8%. I can’t for the life of me get these numbers to add up to 31%.
Because a race to the top is more positive – look at the data!
Because revolutionary France does it! Next..
Seriously, a common EU rate, as the biggest market after China would have a benchmark influence. I think that way common standards lie…
I would give countries some space to compete. say a bracket of between 25% and 50%. Some of the smaller economies’d be screwed otherwise.
I am happy with 0%
IF – and it is a massive if – it can only apply to domestic transactions
Not sure I follow the logic of this one Richard?
What tax rate for domestic income from labour (or even unearned income), if domestic corporate profits are taxed 0%?
There is no logic
I am saying if that is a democratic choice I can live with it, so long as it impacts domestically only
In other words I am respecting democratic rights
I’m all for democracy in our taxation policy and would be intrigued to see how many people voted for a greater level of taxation on the earned income of the individual compared with the unearned income of capital and corporations. I would be happy to leave that to a referendum!