Tuesday, October 19, 2010

BBC News - EU proposes new Europe-wide VAT

BBC News reports: "The European Commission has put forward proposals for direct EU taxes on member states, including a possible EU-wide value-added tax (VAT). The proposals are part of a package of options for finding new sources of revenue for the European Union budget."

Comment: This is a very significant development. The EU is not a true federal state, like the United States, it's more of a confederation of independent states. That could change if this proposal for direct taxes is accepted. Just think what mischief the EU executive and legislative branches could get into if they could directly tax EU citizens without going through the member states. Let's watch this one closely.

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