The EU Commission today announced its intention to press ahead with an EU tax and Bond sales.
As discussed here previously, the EU Commission is determined to raise an EU tax. As with prior approval of national budgets, 4 year national plans like Ireland's and financial penalties for national budget deficits, there is clearly a yawning gap in democratic accountability, as the EU Parliament, the only elected body, is relatively toothless as a decision-making body.
Clearly, these measures taken as a whole change the political, economic and social character of both EU nation states and the EU itself and require referenda.
The European Commission has today announced proposals for an EU tax and a review of the UK's rebate from the EU budget. The proposals form part of the Commission's recommendations for the next EU budget post-2013. The Commission has said that an EU tax could come in the form of a share of a financial transaction or financial activities tax, the auctioning of EU green house gas emission allowances, an EU charge related to air transport, a separate EU VAT rate, a share of an EU energy tax or of an EU corporate income tax. The Commission has also proposed issuing EU bonds to fund large-scale projects. This would allow the EU to borrow against the EU budget, which is guaranteed by national governments.
Why an EU tax is the wrong idea (Open Europe)
- The prospect of an EU tax raises huge political issues and would be completely unacceptable to the majority of European governments. Most of the proposals for an EU tax outlined by the Commission, such as financial activities taxes, would put a disproportionate burden on the UK.
- Giving the EU direct powers of taxation over European citizens would break the link between taxation and political representation, one of the cornerstones of democracy.
- Member states should have full control over the money they send to Brussels. - There is a real risk of fuelling discontent in several European countries if the EU insists on increasing the fiscal burden on taxpayers at a time when they are already facing tough austerity measures.