Sunday, September 22, 2019

Taxation and the EU

There's been a suggestion put out there by the Merkel coalition government to the EU on 'taxation'.  Basically, they want a limit of 1-percent GDP, that would be handed to the EU. 

Reaction so far....it's not exactly something that the EU likes because it'll mean less money in the long-run.  Some folks admit that this rule should have been created years ago, to prevent the current issues that exist today.

Acceptance?  The controlling block of the EU probably can pass this.

Problems?  Well....if a recession starts up and you had your GDP drop like a rock for a year or two....it'd be a disaster for the EU to handle their budget and the cuts required. 

If you go and analyze the incoming funds and outgoing funds....Germany and France will typically get about 70-percent of what they send the EU back....in project money (museums, airports, roads, bridges, etc).  Some will be spent on the EU operations itself, and then the rest shipped off to poorer countries...like Greece or Croatia. 

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