Taxes Affected In The European Union

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Taxes affected in the European Union

Introduction

The European Union is an area with high taxation. In 2008, the sum of taxes and social security contributions in the 27 Member States rose to 39.3%of GDP, well above the United States level (26.9%) and Japan (28.3%). In the European Union eleven countries are below 35%, as can be seen in the graph that is attached below. However, among the 27 there are substantial differences ranging from 28% of Romania to 48.2% of Denmark or 47.3% of Sweden. It should be noted that these last two countries have a conception of public services very different from the rest of the community partners.

Developing

We do not want to say that the services are worse in the rest of the countries of the Union. In the table that appears below you can see the evolution of the fiscal pressure in % on GDP in the different countries of the European Union in the period between 1995 and 2008. Apart from the cases of Denmark, Sweden and Finland that are above the average as commented before, you can see how the European Union countries: harmonization and fiscal coordination after the Lisbon Treaty 113 Centro Europe as Belgium, Austria, Italy and France are above 40%. 

Another important fact that attracts attention is that there are also important differences within the block of the Member States that have been incorporated into the European Union in its last extension process. Thus, there are countries like Hungary, Cyprus and Slovenia that have fiscal pressure levels above the average of the union. Finally, we would like to indicate that the countries that are below the European Union average are Czech Republic, Luxembourg, Malta, Poland, Bulgaria, Spain, Greece, Estonia, Lithuania, Ireland, Slovakia, Latvia and Romania. The economic crisis of recent years.

It has resulted in important changes in the structure of tax revenues in the 27 Member States of the European Union. Among the former Member States there are important differences in the weight of direct and indirect taxes on the total income income. Thus, in the countries of northern Europe including the United Kingdom and Ireland, direct taxes have a high weight in the tax income set. There are other countries in which the weight of social security contributions is very low, as is the case in the case of Denmark. 

This is because this country has traditionally been at the head within the European Union in terms of the tax types of the Income Tax of natural persons. The scarce income obtained by the lowest burden of social security contributions are compensated with those derived from the application of high types in said tax. Before concluding this section, it is convenient to be publicized that the types of gravamen of special taxes on energy products have also increased in many European Union countries in the last two years. 

conclusion

Within the group of special taxes, it is worth mention. It falls on sugary soft drinks with the exception of light drinks and those carried by sweeteners and do not have added sugars. Its amount is 3.58 euros per hectolitro, which is equivalent to a cent per bottle or can 33 centiliters. With this tax, justified by the French Executive for public health reasons.

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