Commissioner Canute

One of the Former Communists in the European Commission is working on a plan that will go down like a lead balloon.

EU tax commissioner Laszlo Kovacs will be ready to table a plan for greater harmonisation of corporate taxes in three years' time.

Rather than get irate and rant about economic sovereignty, I would just like to point out to the old chap that the tide is rather going the other way. Latvia, Estonia, Lithuania and Slovakia are all enjoying the fruits of a flat tax, which are set at rates below what the harmonisers want. Croatia is likely to join them. Other new members are looking on with interest and if no-one else joins the club in the next three years I will be very surprised. By 2008, Romania will have probably joined the EU, bringing another flat tax into the club. Austria has lowered its tax rates and is busy promoting itself as a low tax alternative. The UK even under the Ghastly Statist Gordon Brown is unlikely to accept. Even Germany may have a government more inclined to decrease taxes than increase them by that date. Of course, aware that their will be opponents, the system will be flexible.

Twenty member states out of 25 supported the idea of an EU-wide corporate tax base, the commissioner said, opening up the way ahead for the majority of member states under the reinforced cooperation mechanism, which would allow opponents such as the UK to remain outside

Seeing that we have at least 7 nations listed with very good reasons to resist, the number 20 seems a little optimistic. Besides having seen how waterproof Opt outs are, does he really expect the opponents not to try and derail the whole thing? For those with an interest in Flat Taxes, This Blogger has ideas on how to apply the system to the USA.