Direct EU Taxation.
The FOC â€œMyth Seriesâ€ states clearly that â€œWe control tax and social securityâ€
The Government negotiated successfully to keep a national veto over tax proposals. Social Security proposals are subject to an effective veto through a national ‘emergency brake’ mechanism allowing any Member State to refer a proposed law to the European Council (the body composed of national heads of state/government) for decision by consensus.
Of course, this means that direct taxation should specifically be out of bounds to the ECJ, according to the treaties. But itâ€™s clear from the number of cases the Commission has brought recently, that both the Court and Commission are intent on brushing that rule aside.
Their ultimate aim is nothing less than pan-European Union tax harmonisation. They even have a Commissioner for duties and taxes Laszlo Kovacs, who is pushing to harmonize rules on VAT among the new and old member states of the EU. This would call into question exceptional rules such as the 0 per cent VAT on children’s clothing in the UK. Also the EU Commission yesterday backed moves to tax aviation fuel, purportedly to fund aid to developing nations – a step that would not only increase airfares but set the precedent for an EU wide tax, this will then be used to further the intention of tax harmonisation. .
So we keep our veto, big deal, this does not mean there will be no harmonisation of taxes across the EU, that is what they are pushing for all the time, it only needs Tony Blair to sign a piece of paper and hey presto, they have harmonised tax systems. The EU will then be in charge and have the authority to set the rates across the whole EU, so this government would have removed taxation from the political power of the British parliament and our power to vote for a party that promises to lower taxes or to increase social security spending.
The Constitution makes it clear that the EU will fund its own spending, it can only do that by direct taxation.