In the proposed Budget project, the intention is to re-allocate half the new income, or 2% of GDP out of a total of 4% of GDP derived from the four taxes on profits, high incomes, high assets and carbon emissions.
In particular, this will enable member States to lower the taxes weighing on the lowest incomes (VAT, indirect taxes, taxes and deductions on salaries, etc.), in keeping with the priorities which they decide.
The European Assembly could also choose to re-allocate the totality of the income in this way. This is not our preferred choice, because it seems to us important that these new revenues also be used to finance shared investments in the future. But this type of choice would already be a considerable improvement in comparison with the present situation: the European Assembly would be an instrument enabling each Member State to set up greater fiscal justice.
This post was written by admTDEM