
Understanding the Future of the EU Tax Mix
The landscape of taxation within the European Union (EU) has become increasingly complex and uncertain, particularly in the wake of recent financial crises. In an insightful interview with Dr. Irma Mosquera Valderrama, a distinguished Professor of Tax Governance, she expressed that the EU currently lacks a coherent tax strategy, which hampers its credibility among citizens and dwellers.
Evaluating the Current EU Tax System
Dr. Mosquera Valderrama points out that the EU’s tax mix is in a state of flux, influenced by international legal frameworks such as the Base Erosion and Profit Shifting (BEPS) initiative. Historically, the EU focused on creating an attractive business environment for small to large enterprises by ensuring fair business taxation. However, this vision has shifted toward regulatory compliance, likely owing to pressures stemming from the global rise in digital economies and aggressive tax practices by multinationals.
The Push for Fair and Comprehensive Taxation
One of the central topics in ongoing EU discussions is the need for wealth taxation. While values call for equality and social equity through taxation, the execution appears muddled. There is a demand for clearer strategies that can bridge the gap between the interests of large multinationals and SMEs (small and medium-sized enterprises). Unfortunately, multiple proposals like the UNSHELL Directive have failed due to overlap with existing policies, further signalling the need for a fundamental reevaluation of tax policy direction.
The Path Ahead: Addressing Challenges in EU Tax Policy
Looking forward, it is essential for the EU to hone its tax policy into a cohesive approach that prioritizes simplicity and stability. While various projects are on the table, such as simplifying tax rules and enhancing cooperation between tax administrations, clarity in direction is crucial. Only then can the EU regain the trust and legitimacy it desperately needs in the public eye.
This exploration into the future of the EU tax mix indicates a necessity for fundamental shifts in how taxation is approached, particularly in contexts sensitive to both local businesses and global economic trends.
Write A Comment