European governments also collect about US$300 billion a year that would fall under the guise of environmental taxes. For example, Danish taxpayers must deliver about US$1,500 a year in "ecotaxes" before paying the basic income tax rate of 50 percent. Registration fees for new cars are for 180 percent of their value, plus another 25 percent in VAT.
And they spend a lot. For example, EU spending on labor-market programs exceeded US$100 billion in 1998.
No wonder European politicians are so edgy about tax competition. But all this hypocritical posturing should be seen for what it is.
Christopher Lingle is Global Strategist for eConoLytics.com.
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