Why the EU is a waste of time
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Jörgen Andersson wrote:
to make it properly functional we would need to have the same (or at least similar) taxation system over the whole euro zone
This is a myth. It is what is stated by people who resent paying higher taxes and has no bearing at all on the validity of the currency. (By the way the principle obstacle to its real success is a common bond/debt system).
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I'd say we need both.
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I'd say we need both.
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Look at the US. Each state has its own laws, own taxation. Yet as a single currency it is the most sucsesfull in the world. So how relevant is common taxation to a common currency?
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Federal taxes are the same. State taxes and county taxes are similar enough to use the same bookkeeping and taxation programs. Try that in the EU.
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Look at the US. Each state has its own laws, own taxation. Yet as a single currency it is the most sucsesfull in the world. So how relevant is common taxation to a common currency?
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Not quite. The state taxes are rather symbolic compared to the federal. And the federal are the same every ware.
There is only one Vera Farmiga and Salma Hayek is her prophet! Advertise here – minimum three posts per day are guaranteed.
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Federal taxes are the same. State taxes and county taxes are similar enough to use the same bookkeeping and taxation programs. Try that in the EU.
Here is an example of a quite important tax, sales tax, AKA TVA, VTA, BTW etc:http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States[^] You can see how much it vaires across the US. Like I said, comon taxation is not a barrier to the success of the Euro. In fact it has succeded very well, and only when faced with the worst ecconomic crisis ever seen has it come under pressure. Pressure priciply because debt rates across european countries vary. Without that, there would be little quesiton about its survival.
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Not quite. The state taxes are rather symbolic compared to the federal. And the federal are the same every ware.
There is only one Vera Farmiga and Salma Hayek is her prophet! Advertise here – minimum three posts per day are guaranteed.
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Here is an example of a quite important tax, sales tax, AKA TVA, VTA, BTW etc:http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States[^] You can see how much it vaires across the US. Like I said, comon taxation is not a barrier to the success of the Euro. In fact it has succeded very well, and only when faced with the worst ecconomic crisis ever seen has it come under pressure. Pressure priciply because debt rates across european countries vary. Without that, there would be little quesiton about its survival.
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That's basically the same tax but with different numbers. No problems there. I'm thinking more about excise duty and similar that has the purpose of distorting competition. When it comes to common bond/debt system I agree with you.
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That's basically the same tax but with different numbers. No problems there. I'm thinking more about excise duty and similar that has the purpose of distorting competition. When it comes to common bond/debt system I agree with you.
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Yes, this is a tax that should be harmonised, but it isnt relevant to the validity of the Euro.
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So ok, I'm a bit off track here. What I should have been saying before ending up in a discussion that goes a bit off topic and isn't my pet peeve is that: Harmonizing the tax system (and debt system) is important for the common market for the same reason as the euro. It makes trading easier.
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So ok, I'm a bit off track here. What I should have been saying before ending up in a discussion that goes a bit off topic and isn't my pet peeve is that: Harmonizing the tax system (and debt system) is important for the common market for the same reason as the euro. It makes trading easier.
Yeah, OK, in that I go along with you. Of course when discussing the euros stability as a world currency one has to look at how countries external to the eurozone interact with it. In this case debt and bonds are key, and an area that needs looking at.
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