“This whole process is the beginning of a slippery slope. Once there is a common corporation tax, adding common rates of VAT is but one step away and then we will see proposals for a common EU-wide income tax and the end of the fiscal decision making powers of EU nation states will be complete.” - UKIP MEP Steven Woolfe, Financial Affairs spokesman.
Press Release •Commenting on this morning news that the German, French and Italian finance ministers have urged the European Commission to draw up EU-wide laws to curb corporate tax avoidance and prevent member states from offering lower taxes to attract investors, UKIP’s Financial Affairs Spokesman said:
“The UKIP economics team have long anticipated this morning’s request from the big three Eurozone states. Of course, after a sizable number of MEP’s voted for a censure motion against him last week, this request will be welcomed by Commission President Juncker like a drowning man grabbing a floatation device.
“In a backroom promise to the left wing and corporatist parties who voted to support Juncker against the censure motion, this arch-crafter of tax avoidance measures when he was President of Luxembourg, promised to look favourably on this centralising measure which will give the EU Commission even more power.
"In reality, and presently in EU law, corporate tax is a competence of the nation state not the unelected EU Commission. Yet here we see three countries wishing to give this power away from national parliaments to the bureaucrats of the EU.
“Rival corporate tax rates keep national governments ‘honest’ and create healthy competition for enterprises as long as they are transparent and face democratic accountability. It is the underhand nature of many of these specially negotiated corporate tax deals that leave them open to criticism and make them despised by hardworking people across Europe who don’t have similar extraordinary relationships with their nation’s tax authorities.
“This whole process is the beginning of a slippery slope. Once there is a common corporation tax, adding common rates of VAT is but one step away and then we will see proposals for a common EU-wide income tax and the end of the fiscal decision making powers of EU nation states will be complete.”