Flat Tax and Developed Countries
    Tax Competition versus Tax Coordination




    Bratislava, October 5, 2012
    Michael Jaeger
    Secretary General



1                                 Taxpayers Association of Europe
Excerpt of TAE Aims and demands


     Fair and simple tax laws
     Less taxation, dues and social security costs
     No EU-Tax
     Economic and lean public administration
      Privatisation
     No EU-Harmonization of economic policy
     (no state-directed or central planned economy)
2                                     Taxpayers Association of Europe
Research and Experience



       Excessive government / public spending are
        financed by taxation
       Taxation and Economic Growth:
        - high taxation  low economic growth
        - low taxation  high economic growth
       High taxes and the government expenditure that they
        finance mean lower rates of economic growth


3                                        Taxpayers Association of Europe
Taxpayers Association of Europe   4
Increasing debts despite increasing revenues!




     Increasing   debts
       increasing revenues, but higher
       increase of public expenditure
       (e. g. Germany)




5                                         Taxpayers Association of Europe
expenditures




                                     revenues




Taxpayers Association of Europe          6
Revenues Germany 2005-2014




                                  total




                                   German
                                   Federation




                                          7
Taxpayers Association of Europe
History of the Public Debt
       Germany 1950-2010, in bn Euro




                                       8
Taxpayers Association of Europe
Why to Fight for Low Flat Tax
    Systems in Europe?


     Effects of low taxes to stimulate growth and increase
      of revenues are evident
    But:
     In many countries the Euro and Financial crisis are
      misused to demand an increase of taxrates or to
      introduce new taxes (wealth tax, inheritance tax, FTT,…)
     European Commission proposes harmonization of
      direct taxes (PIT, CIT, CCCTB,…)

9                                         Taxpayers Association of Europe
Flat Income Tax
                                    and Year of
                                  Implementation




Taxpayers Association of Europe               10
Income Tax 2012
                                     highest rate




Taxpayers Association of Europe               11
Taxpayers Association of Europe   12
Taxpayers Association of Europe   13
Annex




14           Taxpayers Association of Europe
Inheritance Tax 2009




                       Taxpayers Association of Europe   15
Taxpayers Association of Europe   16
How large does government need to be?




17                                 Taxpayers Association of Europe
Imprint and Contact



       Taxpayers Association of Europe
       Michael Jaeger

       Office Munich                                         Office Brussels
       Nymphenburger Str. 118                                Avenue de la Renaissance 1
       D-80636 Munich                                        B-1000 Brussels
       +49 89 126008 20 Phone                                +32 2 738 7112 Phone
       +49 89 126008 47 Fax                                  +32 2 736 0571 Fax

       E-Mail   info@taxpayers-europe.org
       Web      www.taxpayers-europe.org

       © Dipl.-Kfm. Michael Jaeger
         Publication – including parts – only by indication of the source and
         approved by the authors



18                                                                Taxpayers Association of Europe

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Flattax jaeger

  • 1. Flat Tax and Developed Countries Tax Competition versus Tax Coordination Bratislava, October 5, 2012 Michael Jaeger Secretary General 1 Taxpayers Association of Europe
  • 2. Excerpt of TAE Aims and demands Fair and simple tax laws Less taxation, dues and social security costs No EU-Tax Economic and lean public administration Privatisation No EU-Harmonization of economic policy (no state-directed or central planned economy) 2 Taxpayers Association of Europe
  • 3. Research and Experience  Excessive government / public spending are financed by taxation  Taxation and Economic Growth: - high taxation  low economic growth - low taxation  high economic growth  High taxes and the government expenditure that they finance mean lower rates of economic growth 3 Taxpayers Association of Europe
  • 5. Increasing debts despite increasing revenues!  Increasing debts  increasing revenues, but higher increase of public expenditure (e. g. Germany) 5 Taxpayers Association of Europe
  • 6. expenditures revenues Taxpayers Association of Europe 6
  • 7. Revenues Germany 2005-2014 total German Federation 7 Taxpayers Association of Europe
  • 8. History of the Public Debt Germany 1950-2010, in bn Euro 8 Taxpayers Association of Europe
  • 9. Why to Fight for Low Flat Tax Systems in Europe?  Effects of low taxes to stimulate growth and increase of revenues are evident But:  In many countries the Euro and Financial crisis are misused to demand an increase of taxrates or to introduce new taxes (wealth tax, inheritance tax, FTT,…)  European Commission proposes harmonization of direct taxes (PIT, CIT, CCCTB,…) 9 Taxpayers Association of Europe
  • 10. Flat Income Tax and Year of Implementation Taxpayers Association of Europe 10
  • 11. Income Tax 2012 highest rate Taxpayers Association of Europe 11
  • 14. Annex 14 Taxpayers Association of Europe
  • 15. Inheritance Tax 2009 Taxpayers Association of Europe 15
  • 17. How large does government need to be? 17 Taxpayers Association of Europe
  • 18. Imprint and Contact Taxpayers Association of Europe Michael Jaeger Office Munich Office Brussels Nymphenburger Str. 118 Avenue de la Renaissance 1 D-80636 Munich B-1000 Brussels +49 89 126008 20 Phone +32 2 738 7112 Phone +49 89 126008 47 Fax +32 2 736 0571 Fax E-Mail info@taxpayers-europe.org Web www.taxpayers-europe.org © Dipl.-Kfm. Michael Jaeger Publication – including parts – only by indication of the source and approved by the authors 18 Taxpayers Association of Europe