Speaking after a meeting with Bavaria’s state Cabinet atop the Zugspitze mountain, Germany’s highest peak, Merz said that continuing with the 15% minimum tax in Europe would put the continent’s economy at a disadvantage.
Speaking after a meeting with Bavaria’s state Cabinet atop the Zugspitze mountain, Germany’s highest peak, Merz said that continuing with the 15% minimum tax in Europe would put the continent’s economy at a disadvantage.
I think it’s time to have a radical rethink of taxation, because this race to the bottom appears inevitable. We will never get every country to sign up to this, and in a world where profit is increasingly driven by IT services, it is easier than ever to domicile in a tax friendly country. I propose the following:
Institute a land value tax. This has many benefits but in the context of businesses, it is impossible to evade or avoid. Land can’t be offshored or hidden in a the Seychelles.
Increase VAT. There is already a robust mechanism for collecting VAT derived from foreign companies. Increasing this tax is achievable and realistic.
Eliminate exemptions and tax breaks for personal capital gains and income.
Abolish corporate income taxes. These are generally already gamed to minimise booked profit. Eventually shareholders have to sell shares or draw down on OE. Tax this.