Our present and future tax payments usurped by banks

Press conference by Algirdas Šemeta, Member of the European Commission, on a comprehensive package to strengthen the fight against tax evasion and aggressive tax planning in the EU. (EC Audiovisual Services).

Press conference by Algirdas Šemeta, Member of the European Commission, on a comprehensive package to strengthen the fight against tax evasion and aggressive tax planning in the EU. (EC Audiovisual Services).

According to Eurostat, the EU statistical service, tax payments in absolute terms, kept rising in the Eurozone after 2009 and surpassed the pre-crisis levels in 2011. Given that all along this period most of the euro area member states applied austerity measures, by cutting social spending, it is common knowledge by now that the extra government income was used to support the banking sector. Practically all Eurozone governments were forced during this period to save all and every Eurozone banking firm from its sins.

Eurostat also observes that, “the proportional increase in tax revenues was higher than the proportional increase in Gross Domestic Product, which has also resulted in an increase in the tax revenue to GDP ratio in both the EU and the euro area”. Unfortunately it was not only that. Apart from the extra tax revenues used to bailout the financial sector, Eurozone governments were forced to borrow huge amounts of money to recapitalise all careless lenders.

More taxes

During the crisis years, and mind you that Europe hasn’t seen yet the bottom of it, governments were obliged to borrow anything around 30% of GDP to recapitalise the banking sector. The Eurozone average sovereign debt to GDP ratio increased from 60% in 2007, to 90% in 2011. The most unfortunate case was Ireland. This country’s sovereign debt to GDP ratio rose from 25.1% in 2007 to 106.4% in 2011. All that unbelievable amounts of money were used to save the life savings of citizens, that the banking system has usurped. In Spain the sovereign debt to GDP ratio increased form 36.3% in 2007 to 69.3% in the year 2011. Again to bailout the banking sector.

It’s a pity to watch an entire continent to bleed for years now, because the banking system not only usurped the deposits of its customers, but also borrowed heavily to place risky bets, just to raise short-term profits for shareholders and fat bonuses for dealers and management. It is even more painful to watch now the banks to complain, because the European Union is about to introduce caps on bankers bonuses. The argument that the European banks might lose their ‘brains’, if bonuses are capped, it’s at least nerve-racking, because those bank executives take the rest of working professionals as completely morons.

Let’s return however to the taxation minefield. According to Eurostat, “The effects of the economic and financial crisis on tax revenues from 2007 onwards are apparent. From its last spike in 2006 in the EU-27 the ratio of tax revenue to GDP decreased by 1.1 percentage points to 39.6 % in 2010, while the ratio for the Eurozone 17 also decreased by 0.9 percentage points of GDP from its peak of 41.2 % in 2007 to 40.3 % in 2010. In 2011, tax revenues in terms of GDP increased substantially, which was due to absolute tax revenues increasing along the same path as in the previous year, but nominal GDP growth being lower. This reflects pro-active tax measures taken by Member States during the last years to correct their deficits”.

In this way Eurostat substantiates with solid facts the allegations that the banking industry absorbs an increasing part of our present and the future tax payments. The previous paragraph can support the allegation that banks are absorbing more from our present tax payments. By the same token though, the fact that almost all Eurozone governments borrowed heavily to bailout the banking sector, substantiates the dreadful prospect that the financial sector of the economy will continue in the future to suck the blood of sweating people through usurping their future tax payments.

 

 

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Gender equality within junior enterprises: the effect of President’s gender

Close to final agreement on the EU Banking Union

Antitrust: Commission sends Statement of Objections to O2 CZ, CETIN and T-Mobile CZ for their network sharing agreement

‘Answer the call of Afghans’ to reduce impact of conflict, UN urges all parties amid increase in civilian airstrike deaths

Greece bailout ends but with no substantial effect on citizens’ life

Brexit mission impossible: Theresa May was so desperate that had to appoint Boris Johnson as Foreign Secretary

To entrepreneurship and beyond!

Amid global ‘learning crisis’, Parliaments can ensure adequate resources for education, says UN Assembly President

UN mourns death of former Secretary-General Kofi Annan, ‘a guiding force for good’

This is how climate science went mainstream

Young activists share four ways to create a more inclusive world

UN rights chief ‘appalled’ by US border detention conditions, says holding migrant children may violate international law

IMF asks Europe to decide on bank resolutions and the Greek Gordian knot

Threat from petty criminals who turn to terrorism, a growing concern, Security Council hears

The developing countries keep the world going

Joris in Indonesia

Dreaming of China

5G: How a ‘legion of robots’ could help save the rhino

Commission notifies the Republic of Panama over the need to step up action to fight against illegal fishing

Service and Sacrifice: Guinean peacekeepers make their mark in Mali

UN member states express their will to tackle global migration but specific actions are still missing

Secretary-General calls for global participation in UN75 dialogues for better future for all

MWC 2016 LIVE: Telenor CEO calls on operators to embrace Mobile Connect initiative

MEPs call for sanctions against Turkey over military operation in Syria

Germany not famous for easy way outs from political stalemates

Smart devices must come with trust already installed

How a new approach to meat can help end hunger

EU leaders agree on 2030 Climate and Energy Package: is “flexible” brave enough?

Northern Ireland: Parliament wants to secure post-Brexit regional funding

Globalization 4.0 must build a better world for working people

Syria: Civilians bear brunt of unilateral sanctions, exacerbating ‘unparalleled suffering, destruction,’ says UN expert

Global economy to see ‘steady’ growth of three per cent in 2019 despite risks, says UN

Schaeuble wants IMF out and bailouts ‘a la carte’ with Germany only to gain

At Arab League Summit, Guterres reaffirms strong link between UN and people of Arab world

Ukraine: Temperatures plunge amid rising humanitarian needs

Closing VAT loopholes for sales through online platforms

How trade tariffs could help combat climate change

These 5 countries plan to slash their CO2 emissions. But how will they do it?

Why economic growth depends on closing the interview gap

North Korea missile tests ‘deeply troubling’: senior UN official

Trump and Brexit: After the social whys the political whereto

Defence: European Commission paves the way for first joint industrial projects under EU budget

5G in Russia: a local and global view on the way forward, in association with The European Sting

EU adopts rebalancing measures in reaction to US steel and aluminium tariffs

Britain’s poet laureate has created a prize to highlight poetry about the climate crisis

Next time you fly, could you be boarding a train instead of a plane?

Fighting forest fires in Europe – how it works

Here’s why leaders need to care about mental health

LEAGUE OF YOUNG VOTERS LAUNCHES TOOL FOR YOUNG PEOPLE TO COMPARE POLITICAL PARTIES AHEAD OF EU ELECTIONS

The US starts an intense currency war to protect its global standing

Why feeding the planet doesn’t have to mean sacrificing our forests

For how long will terror and economic stagnation be clouding the European skies?

Learn from the margin, not the center: digital innovation with social impact as transformative force bridging digital divide

Youth policy in Europe not delivering for young people

This young scientist is tackling food insecurity for the world’s most vulnerable groups

Sudan: Health challenges in the Sustainable Development Goals era

Brazilian health: right or privilege?

New UN rights report paints bleak picture in eastern DR Congo

Here are 5 new green laws coming into force in 2020

70 years after the Universal Declaration of Human Rights, this is why we need dignity more than ever

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s