Europe Needs Good Tax Policy, Not Buzzwords, to Grow Its Economy

TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Foundation expert encourages new tax mindset for the EU. Simplicity and transparency support bloc’s competitive posture.

With war continuing in Ukraine, political instability in France and Germany, and the return of Donald Trump to the White House, this could be a year of major realignment for Europe. The tax policy mindset in Brussels should shift accordingly.

The EU finds itself in a brave new world with “competitiveness” and “decluttering” as the new undefined buzzwords driving policy. Both the incoming European Commission and Polish presidency of the Council have hinted that streamlining tax files to be more efficient (decluttering) should be part of the competitiveness agenda.

Given that EU tax policy tends to be adopted unanimously, this consensus is good news for those who favor eliminating redundant red tape to accelerate economic growth. But success will require policymakers to embrace sound tax policy principles to achieve their long-term economic objectives.