Sunday, January 14, 2018

The EU Taxation Story

It kinda came up this week through various news sources that the EU leadership in Brussels is having some talks over a very disturbing problem.

Typically, they dish out a fair amount of money from the EU.  This only occurs....because the 28 members send them enough tax revenue....that can be returned via EU programs.  Most Folks (even Germans) don't question the method of handing some money over to someone, to have the same person hand you the same money back....just less of it.

The problem confronting the EU is that after the Brits leave via BREXIT, there's 27 members left, and a shortfall of twelve to fifteen billion Euro (15 billion to 18 billion US dollars). 

I sat and pondered over this problem.

The amount of money that the UK got from the EU each year was about 9.1-billion Euro.  Course, the Brits had to pay 19-billion get the 9.1-billion back (that's EU math).

Naturally, a person would sit and think....well, we don't have to pay that nine billion to the UK really we ought to be talking about a three-billion Euro shortfall....more or less.  A normal guy would think that.

If you needed another solution, one would think that you'd just trim the budget here and there.....cut most all programs by three-percent, and you'd reach your magic number.

But reports indicate that the EU is discussing a tax program.  The one suggestion is a tax on all plastic bags (like the ones you'd use at the grocery or shopping district).  A couple of cents on each one, and that would all go into some magic EU pot of money.  My guess is that it'd take about a hundred days and you'd see two thing occur throughout the EU....a bunch of folks quitting plastic bags and switching to re-usable bags. Or you might see a drug-dealer empire start to sell plastic bags without taxation....illegally of course.

The other suggestion being discussed in the public sector is this tax or fee that you'd charge non-EU folks for crossing borders (or visas).  You could make up some imaginary number like sixty-Euro a year to cover border crossings for the non-EU folks, and they'd have to pay it. 

All of this should lead to ask what exactly the EU does for people....that your own country couldn't already do, and if this was just a big shell game to move vast amounts of money around for fake projects.

The EU elections are set for 2019, and there's likely to be a fair amount of talk over the taxation games, and how money is spent. 

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