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Europe’s high tax future Or should I say higher tax future. Head of the European Central Bank, Dutchman Wim Duisenberg has said that the new Euro currency will lead to tax harmonisation in the long run. Of course I don’t think anyone thinks that means taxes will move down to the lowest common denominator given the French and German remarks about ‘unfair tax competition’. No, we are talking about the whole EU moving up to the confiscatory levels of the highest.
This is of course a 100% political, rather than economic, matter. Taxes are the amount of money confiscated by the state and that is decided by political, not economic, processes. Yet still people maintain the fiction that the European Central Bank is not a politically motivated entity. What economic factors are going to drive taxes to the same levels because the EU now has a common currency?
Now correct me if I am wrong but I thought the entire USA used the US Dollar. Tell me, are the total taxes in New Mexico, Carolina and New York all ‘harmonised’? No, I didn’t think so.
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