Taxation: get the money where it is – Economic Policy

Concrete steps have already been taken regarding multinational and intermunicipal companies. It remains to be seen why the unions remain unreachable.

Debt of the Belgian government continues to grow. It is now at 47,000 euros per resident and rising by 50 euros per second. Belgium will be the second country after Romania to record the largest budget deficit. Last year, the net wealth of Belgians was estimated at 1,200 billion euros, or about 100,000 euros per inhabitant. If we start with the principle that the active Belgian has to repay the public debt “one day”, and if we divide its amount by the number of active people, this debt amounts to 94,000 euros per resident. In other words, after reducing its share of public debt, the active Belgian is “rich” by 6,000 euros net on average. We will expire unless. The common ones clearly hide poverty and concentration of wealth. How can this heavy burden be placed on active Belgians? Other actors have to put their hands in their pockets.

Many readers will remember of the slogan of the extreme left: “You need to find the money where it is, in banks and holding companies”. I sang it to myself when I was in university. Left the hearts of young people. But many of Vivaldi’s partners who failed to grow are pushing for a lot of wealth taxes. However, due to globalization, the money of “banks and holding companies” is volatile. Therefore, the approach should be global. A good example is the introduction of a minimum tax of 15% on profits.

Multinationals and their subsidiaries whose annual income exceeds 750 million euros and which is active in more than one European Union country are required to make public the amount of tax they pay to each Member State. Information is also available on the internet. The EU directive needs to be made national law within the next 18 months for the Corporate Tax Transparency Act to take effect by mid -2024.

Intermunicipal companies should also expect a lot of change. The politicking of the sector, the presence of politicians on the board of directors, allows intermunicipal companies to escape taxation for a long time (law of 22 December 1986). Repeated scandals, including that of Nethys, have underscored the enormous profits of many intermunicipal companies. The Constitutional Court ruled that the tax exemption that allows intermunicipal companies conducting commercial activities to be favored over the private sector is unconstitutional. From this judgment, intermunicipal companies that conduct an economic activity and compete with private companies must pay corporate tax.

Concrete steps have already been taken with regard to multinational and intermunicipal companies. It remains to be seen why the unions remain unreachable. The answer is simple: while they form a de facto association, they do not exist in the eyes of company law. Yes, they can have accounts and even justify having accounts abroad – also don’t know if they actually pay tax on securities accounts. But, they argue, the goal is to prevent a government from getting its hands on that money. For the same reasons, they are not subject to the aforementioned tax transparency directive, they are not accountable and know nothing about their financial capacity. The fight of the unions will be more credible if they set a good example. Won’t the parties of the left and the extreme left put this point on the agenda?

The debt of the Belgian government continues to grow. It is now at 47,000 euros per resident and rising by 50 euros per second. Belgium will be the second country after Romania to record the largest budget deficit. Last year, the net wealth of Belgians was estimated at 1,200 billion euros, or about 100,000 euros per inhabitant. If we start with the principle that the active Belgian has to repay the public debt “one day”, and if we divide its amount by the number of active people, this debt amounts to 94,000 euros per resident. In other words, after reducing its share of public debt, the active Belgian is “rich” by 6,000 euros net on average. We will expire unless. The common ones clearly hide poverty and concentration of wealth. How can this heavy burden be placed on active Belgians? Other actors have to put their hands in their pockets. Many readers will remember the slogan of the extreme left: “You need to find the money where it is, in banks and holding companies”. I sang it to myself when I was in university. Left the hearts of young people. But many of Vivaldi’s partners who failed to grow are pushing for a lot of wealth taxes. However, due to globalization, the money of “banks and holding companies” is volatile. Therefore, the approach should be global. A good example is the introduction of a minimum tax of 15% on profits. Multinationals and their subsidiaries whose annual income exceeds 750 million euros and who are active in more than one European Union country are required to make public the amount of taxes they pay in each Member State. Information is also available on the internet. The EU directive needs to be made national law within the next 18 months for the Corporate Tax Transparency Act to take effect by mid -2024. Intermunicipal companies must also expect a lot of changes. The politicking of the sector, the presence of politicians on the board of directors, allows intermunicipal companies to escape taxation for a long time (law of 22 December 1986). Repeated scandals, including that of Nethys, have underscored the enormous profits of many intermunicipal companies. The Constitutional Court ruled that the tax exemption that allows intermunicipal companies conducting commercial activities to be favored over the private sector is unconstitutional. From this judgment, intermunicipal companies that conduct an economic activity and compete with private companies must pay corporate tax. Concrete steps have already been taken regarding multinational and intermunicipal companies. It remains to be seen why the unions remain unreachable. The answer is simple: while they form a de facto association, they do not exist in the eyes of company law. Yes, they can have accounts and even justify having accounts abroad – also don’t know if they actually pay tax on securities accounts. But, they argue, the goal is to prevent a government from getting its hands on that money. For the same reasons, they are not subject to the aforementioned tax transparency directive, they are not accountable and know nothing about their financial capacity. The unions will probably be more credible if they set a good example. Won’t the parties of the left and the extreme left put this point on the agenda?

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