Evaded EU Taxes = Twice the EU Deficit
|March 22, 2014||Posted by Staff under Uncategorized|
These two excerpts are from the site of the European Commission’s Taxation & Customs Union, last updated 2013 Aug 21, and the first 2014 edition of Green Budget News.
Fight Against Tax Fraud & Evasion
Evaded EU taxes affects each and every European citizen; it knows no borders.
How big is the tax fraud and tax evasion problem?
Huge sums are being lost; estimates go up to € 1 trillion.
How does tax fraud and tax evasion happen?
This money is lost in a number of ways including:
- Tax havens which facilitate tax evaders and avoiders by storing money offshore, often unreported and untaxed.
- Aggressive tax planning by big businesses or individuals, which exploits the limits of the law with the aim of minimizing taxes paid.
Why do we need to do more to fight evasion?
Tax fraud and tax evasion are fundamentally unfair. Why should you pay more tax or sacrifice your public services because someone else pays less?
Green Budget Reform in EU Member States
Moreover, tax fraud often enhances environmentally harmful activities (e.g. tax evasion and tax avoidance related to company cars). Therefore it is of utmost importance for environment protection to combat tax fraud and the corruption related to it.
In Hungary just the opposite is happening. The sum of the illegally evaded VAT and illegally reimbursed VAT in Hungary is equivalent to between 5% and 6 % of GDP. The main actors are not private persons or small enterprises but highly organized criminal groups with close relations to the state. The main beneficiaries are several retail chains and big exporting companies.
Ed. Notes: Naturally, governments feel they have the right to take what they want from anyone in any way and at any amount, and rationalize their taking by claiming the money will be used to benefit those from whom they take the money. But as we all know, that’s not always true. The EU, for example, pays billions of euros to millionaire farmers to not farm. Why should a middle class person fork over some of their hard earned pay just to have it wasted in an unfair way?
Taxists also overlook another basic truth: they don’t distinguish between individual earnings and social surplus. An individual starts a business or erects a building but it’s the society that creates the value of a location. Our spending for land, resources, EM spectrum, etc, is a surplus because it’s not needed to reward anyone’s effort, since nobody created Earth.
Society’s agent – government – should not tax our wages, sales, and homes but rather recover the annual rental value of locations. Then use the raised revenue to pay citizens a dividend. Government need not use taxes; it could use fees, leases, dues, etc. While corruption would still be possible – a wealthy owner might bribe an assessor to reduce his Land Dues – it’d be more difficult to pull off, as long as the books are kept open and any citizen could check up on the assessments and dues collected. Sunlight is the best disinfectant!