Resisting an EU tax on financial services
James Forsyth 12:08pm
The prospect of taxes being levied directly by the European Union is one of those
stories that pops up on a fairly regular basis. It is never likely to actually happen as national governments won’t want to cede the power of the purse strings. But the great Hamish McRae
makes a very good point about the taxes that the EU wants to levy in his Independent column:
‘The two areas the EU wants to put taxes on, banking and air traffic, would hit the UK particularly hard. Financial services are the UK's largest export industry, with net exports (ie exports minus imports) of £33bn last year, more if you add in associated professional services. We are by far the world's largest net exporter of such services. We are also home to the largest international airport, Heathrow, and the largest international air hub. More people fly in and out of London than any other place on Earth.
So you might want to ponder why the EU should choose those two industries as its first targets for direct taxes. Fortunately, Germany is home to Europe's number two international airport, Frankfurt, and has a huge (though less export-oriented) banking system. So we have Europe's other paymaster shooting alongside us.’
Taxes on financial services are the most politically acceptable form of taxation at the moment for obvious reasons. But given that Britain has by far the largest financial services sector in the EU, any attempt to tax them at a European level will hit this country particularly hard. Indeed, Open Europe reports that FT Deutschland has calculated that a tax on financial transactions would make the UK the largest net contributor to the EU budget. London must hold the line.
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Dave B
August 11th, 2010 1:33pm Report this commentThe sooner the UK leaves the EU, the better.
TGF UKIP
August 11th, 2010 2:13pm Report this commentAnd you can bet your bottom dollar that Cable is providing every morsel of support and help he can to the EU and France in their attempted rape and pillage of the City.
Hands up all those who have faith in Cemeron and Osborne to resist.
Cjamesk
August 11th, 2010 2:42pm Report this commentIt will be implemented regardless of the so called "resistance" to it.
the only thing to get our leaders and the EU bureaucrats to listen is a revolt, that`s their greatest fear but wait...... X Factor starts again in a week so that's 80% of the population distracted.
Olaf Rye
August 11th, 2010 2:45pm Report this commentOne thing that no one proposing this tax have answered is how it might help reform the system ? As ever, the only solution that the EU has is higher taxes to fund its other programmes. Coercion seems to be the first policy club out the bag with this lot.
In2minds
August 11th, 2010 3:53pm Report this comment"taxes being levied directly by the European Union - is never likely to actually happen".
So we can all relax and trust the Nucoalition? Next joke?
Marcher Baron
August 11th, 2010 4:08pm Report this comment"London must hold the line." Not just hold the line but start to roll back the advance! Didn't Dave want to "repatriate powers" in lieu of giving us a say in a referendum? Well, now's his chance. Can't say I'm going to hold my breath waiting for a counter-offensive.
paulg
August 11th, 2010 5:19pm Report this commentOnly a sovereign government has the authority to impose taxation on its citizens. This principle is central to parliamentary democracy.
The civil war of the 17C was fought and, a King executed to affirm the principle that only Parliament has the authority to lever taxation on the peoples of this nation.
This historical and constitutional legacy cannot be overturned.
The Germans refer all E.U agreements to their constitutional courts to see if they conflict.
Whereas the constitution of the United Kingdom was not brought into being at a set date with the flourish of a pen; but evolved over centuries and was won with a sword.
Under no circumstances must the coalition tolerate such impudence and either they make this clear to the Brussel fantasists or the English people will exert their written contitutional right, their right to rebel. And they will reap the whirlwind that Brussels sows.
David Booth
August 11th, 2010 8:08pm Report this commentEU initiatives to expand their role in our everyday life is like a persistent burglar who is caught trying to break into your house, chased away but then creeps back to try again time after time.
The only way to deal with it is to withdraw from the EU and start to run our own affairs, just like the grown up country we once were.
edgeplate
August 11th, 2010 9:03pm Report this comment"The prospect of taxes being levied directly by the European Union is one of those stories that pops up on a fairly regular basis. It is never likely to actually happen as national governments won’t want to cede the power of the purse strings."
The purpose of the EU is to become a single European state, and tax raising is an essential part of that. It's a very dangerous construct because it has no unified people and no democratic controls. It's corrupted national governments and left them as facades.
Judging from recent performance, neither this government or the last have been very definite about "thus far but no farther". They sort of go along with it. They pretend to take a strong line when it suits them and drift along when it doesn't.
You may be right on this occasion but it's a logical necessity that the EU will continually seek the ability to levy its own taxes and bypass national governments.
Derek
August 12th, 2010 3:36am Report this commentpaulg
Correct, so far as your argument runs; but then the oligarchy and its clercs forestall the whirlwind by importing into the country hundreds of thousands of people with a hostile ideology and no commitment to our constitutional traditions. We are divided; and ruled.
This is of course why superclerc,Mr. Nelson, has committed trahison in reneging on his promise to write on Neathergate.
Instead of a whirlwind, all that is reaped is hot air.
2trueblue
August 12th, 2010 11:02am Report this commentFrance and Germany hate the fact that the UK have such a strong financial services industry and will do all they can to damage us. Their aviation industry is more subsidized than ours.
The EU is not a partnership. If it were it would be democratic. It is not. We should do what the French do, go our own way whatever. The weakness of our coalition is the strong bias the Lib Dems have towards the EU. Cameron and Osbourne must fight our corner before it is too late. The issue needs to be addressed. It is one area where our expenditure just grows and grows, whilst our return gets smaller.
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