25 Amendments of Joachim SCHUSTER related to 2023/2058(INI)
Amendment 22 #
Motion for a resolution
Recital B
Recital B
B. whereas rising corporate profits account for almost halftwo-thirds of the increase in inflation in the EU over the past two years, as companies increased prices by more than the spiking costs of imported energy;
Amendment 34 #
Motion for a resolution
Recital E
Recital E
E. whereas the EU Member States rely disproportionately on labour income taxes, social contributions and indirect taxes, such as the value added tax (VAT); whereas labour taxation remains substantial across the European Union, tax rates on corporate profits have plummeted by more than half since the 1980s, according to OECD and European Commission statistics;
Amendment 46 #
Motion for a resolution
Recital G
Recital G
G. whereas concerns have been raised about the potential double taxation of Ukrainian refugees who continue to perform their duties for their Ukrainian employer while working remotely from their host countries and about the lack of a common EU approach on this matter; whereas double taxation in general remains a problem for all involuntarily displaced individuals affected by double taxation, and hence should be tackled jointly by a common EU approach;
Amendment 57 #
Motion for a resolution
Recital I
Recital I
I. whereas the number of private jet flights in Europe increased by 64 % between 2021 and 2022; whereas carbon- dioxide emissions from private flights more than doubled in that period; whereas wealthy individuals rely at a far higher rate on private jets, causing disproportionately higher carbon dioxide emissions;
Amendment 77 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Notes that the COVID-19 pandemic had a severe economic impact on every national account across the European Union, notes that Members States are still confronted with significant imbalances in state revenue; notes that such imbalances can partially be corrected by raising adequate revenues;
Amendment 89 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. ObservNotes that price levels have risen by 11% since the beginning of 2022 due to inflation shocks 1a ; notes with concern that inflation has been partially driven by companies increasing their profit margins, with, for example, Maersk’s annual pre- tax income soaring from USD 967 million in 2019 to USD 30.2 billion in 2022; driven mainly by increases in corporate profit margins, as unit profits accounted for around two- thirds of inflation in 2022, according to the European Central Bank 2a; considers that wage increases will be necessary to compensate for the loss of purchasing power of workers in the EU and stresses that fiscal measures should accompany companies in order to absorb wage increases through corporate profits; _________________ 1a Elke Hahn (2023)How have unit profits contributed to the recent strengthening of euro area domestic price pressures? ECB Economic Bulletin, Issue 4/2023 and Speech by ECB President, Sintra https://www.ecb.europa.eu/press/key/date/ 2023/html/ecb.sp230627~b8694e47c8.en. html] 2a Niels-Jakob Hansen, Frederik Toscani, Jing Zhou (2023) Europe’s Inflation Outlook Depends on How Corporate Profits Absorb Wage Gains, International Monetary Fund Blog https://www.imf.org/en/Blogs/Articles/202 3/06/26/europes-inflation-outlook- depends-on-how-corporate-profits- absorb-wage-gains
Amendment 97 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Regrets the fact that that MNEs that realismake excessive profits in times of crisis and wealthy individuals who realise significantmake substantial capital gains through speculation are often undertaxed; taxed unduly; notes that of EUR 100 created in the EU economy between 2020 and 2021, EUR 44 will go to the richest 1% and EUR 9.60 to the bottom 90% 3a; _________________ 3a Oxfam (2023) Survival of the Richest. https://oi-files-d8-prod.s3.eu-west- 2.amazonaws.com/s3fs-public/2023- 01/Survival%20of%20the%20richest- Methodology%20note.pdf]
Amendment 102 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Is concerned that the impact of temporary VAT reductions for end consumers was limited and was more pronounced for companies that increased their profit margins because of these reductions; notes that the findings of a recent study, which examined the pass- through of a VAT reduction in the electricity sector, indicate that VAT reductions can be fully transferred to energy prices when the energy sector is highly regulated and the structure of the sector is highly competitive yet only involving a small number of stakeholders 4a ; however highlights that VAT rate cuts do not guarantee a consumer price cut of the same extent while pass-through of tax cuts into consumer prices, notably VAT, may be lower in times of constrained supply 5a; also notes that VAT cuts imply direct loss of revenues which can translate into supplementary budgetary constraints that might prevent tackling shocks and crisis such as a surge in inflation or climate change; _________________ 4a Jean Hindriks, Valerio Serse (2022) The incidence of VAT reforms in electricity markets: Evidence from Belgium, International Journal of Industrial Organization, Volume 80 https://www.sciencedirect.com/science/arti cle/pii/S0167718721001016 5a Van Dender, K., Elgouacem, A., Prentice, A. C., Matteo, M., Belgroun, H., & Garsous, G. (2022) Why governments should target support amidst high energy prices, https://www.oecd.org/ukraine- hub/policy-responses/why-governments- should-target-support-amidst-high- energy-prices-40f44f78/
Amendment 107 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Notes that since the start of the energy crisis in September 2021, EUR 646 billion has been allocated and earmarked across Member States to shield consumers from the rising energy costs, of which €265 billion has been earmarked by Germany alone6a; highlights that Member States have prioritised untargeted measures on prices, such as cuts to excise duties and VAT, compared to targeted income-support measures which have proven more direct efficiency; _________________ 6a Sgaravatti, G., S. Tagliapietra, C. Trasi and G. Zachmann (2021) National policies to shield consumers from rising energy prices’, Bruegel Datasets, first published 4 November 2021, available at https://www.bruegel.org/dataset/national- policies-shield-consumers-rising-energy- prices
Amendment 108 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6b. Alerts on the fairness concerns that may arise from tax cuts benefiting to fossils fuels which could translate into increasing the profit margins of fossil fuel and extractive large companies in times where vulnerable households may need more direct and targeted support; recalls its support to the temporary solidarity contribution for the fossil fuel sector as established by Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices;
Amendment 115 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
Amendment 116 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Calls on the Member States to consider the ‘COVID-19 precedent’ for the taxation of cross-border workersRecognises the particular challenges that the rise of cross-border teleworking poses to the international taxation systems of today, in particular for the taxation of wages and the taxation of company profits 9a; support the European Economic and Social Committee (EESC) when it highlights that a cross-border teleworking employee could be faced with double taxation on their income, resulting in lengthy and costly disputes between an employee and Member States' tax authorities; highlights the ‘COVID-19 precedent’ for the taxation of cross-border workers while in an emergency situation, solutions had to be found to enable workers to continue working and to maintain their monthly income; considers that, as regards the tax treatment of Ukrainian refugees encompasses similar features, which would entail disregarding the notably as regards the additional days spent in the host country for the calculation of the 183-day rule; recommends that the Member States’ national tax authorities offer tax guidance to refugees and reduce administrative complications; considers that common guidance would help decrease such complication, therefore calls on the Council to tackle this issue; _________________ 9a EESC (2022) Taxation of cross-border teleworkers and their employers, ECO/585-EESC-2022-00408 2022
Amendment 120 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
Amendment 129 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Calls on the Commission to launch a comprehensive evaluation followed by an action plan on important areas for reform in order to strengthen the resilience of Member States’ tax systems by making them progressive, future and crisis proof, including through the simplification of their national tax systems; calls for the Commission to come forward with a tax proposal under Article 116 of the Treaty on the Functioning of the European Union to solve specific tax distortions in the Member States; and recalls the mission letter addressed to the Commissioner for Economy by the Commission President to make ‘full use of the clauses in the Treaties that allow proposals on taxation to be adopted by co-decision and qualified majority voting;
Amendment 136 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Calls on the Commission to assess the effectiveness of the temporary VAT reductions applied in Member States and to take measures if deemed necessary; calls on the Commission to issue guidance on the best tools to provide targeted income support to vulnerable households without creating distortions within the Union; calls on the Commission to assess the efficiency of VAT cash back systems and the feasibility of replacing VAT exemptions and reduced rates with VAT returned in real time to vulnerable households;
Amendment 141 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11a. Recognises that tax incentives are tools at the disposal of governments to support a variety of goals, including fostering investments, addressing externalities and curbing behaviour; alerts on the fact that such tax incentives can be costly, and if poorly designed, may fail to achieve their intended goals, lead to windfall gains for investors, and compromise public finances; therefore calls on the Commission to produce guidelines on how to design fair and transparent tax incentives while preventing a market distortion; calls on the Member States to favour incentives that are expenditure-based, limited in time, regularly assessed, and repealed in case of no positive impact, limited in geographical scope and rather partial than full exemptions; considers that all incentives should aim at fostering equality between and within countries as well as the green and digital transformation;
Amendment 143 #
Motion for a resolution
Paragraph 11 b (new)
Paragraph 11 b (new)
11b. Highlights that the OECD/G20 Pillars, introducing a global minimum effective tax rate for large multinationals, will limit the scope of tax reduction incentives and increase global corporate tax collections, create fiscal space for governments, place limits on tax competition and contribute to reducing Base Erosion and Profit Shifting (BEPS) activity; however notes that such minimum tax rate is not applicable to companies having a yearly turnover below EUR 750 million; deplores the recent guidance of the OECD expanding the scope of qualifying tax credits, increasing the risks of a tax credits race and revenues losses 12a; _________________ 12a OECD (2023) Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti Base Erosion Model Rules (Pillar Two)
Amendment 145 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Highlights that environmental taxes and well-designed incentives have the potential to both cover the need for additional revenues and support a carbon- free economy; calls on the Member States to finally agree on the proposed revision of the Energy Taxation Directive11 ; _________________ 11 Commission proposal of 14 July 2021 for a Council directive restructuring the Union framework for the taxatrecommends to pay due attention to the cost borne by vulnerable households, who emit less greenhouse gas and to prioritise access to incentives to them so they can benefit from access to cleaner energy and save costs by lowering energy consumption; calls on the Member States to finally agree on the proposed revision of ethe Energy products and electricity (COM(2021)0563).Taxation Directive[11];
Amendment 155 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Notes with concern that income inequality has increased in the last 30 years, with wealth being even more concentrated than income and capital gains being mostly realised by the top decile of the population; considers that the Member States should more effectively redistribute income and wealth through the taxation of capital gains, property and wealth; supports calls to start international-level negotiations to establish a progressive wealth tax, in the same vein as the OECD/G20 global tax deal for corporations; recalls its demand to the Commission and the Member States to take the lead in the OECD, and in particular in the OECD/G20 Inclusive Framework, to create a level playing field in taxation of capital gains and to limit harmful tax practices aimed at attracting foreign-earned income, wealth and assets;
Amendment 162 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13a. Welcomes the registration of the European Citizens' Initiative (ECI) on ‘Taxing great wealth to finance the ecological and social transition' on the basis of Article 115 TFEU; highlights that in its decision for registration, the Commission acknowledged that the request does not fall outside the framework of the Commission’s powers to submit a proposal for a legal act of the Union for the purpose of implementing the Treaties13a; _________________ 13a Commission Implementing Decision (EU) 2023/1487 of 11 July 2023 on the request for registration of the European citizens’ initiative entitled ‘Taxing great wealth to finance the ecological and social transition’ https://eur- lex.europa.eu/legal- content/EN/TXT/?pk_campaign=todays_ OJ&pk_cid=EURLEX_todaysOJ&pk_con tent=Other&pk_keyword=Citizen+initiativ e+&pk_medium=TW&pk_source=EURL EX&uri=uriserv%3AOJ.L_.2023.182.01.0 197.01.ENG ]
Amendment 165 #
13b. Calls on the Commission to consider submitting a proposal for a solidarity levy on great levels of wealth to provide for funding to mitigate the great challenges of our times, notably the upward social convergence, including equality between men and women, the fight against climate change and the sustainable development of developing economies;
Amendment 167 #
Motion for a resolution
Paragraph 13 c (new)
Paragraph 13 c (new)
Amendment 168 #
Motion for a resolution
Paragraph 13 d (new)
Paragraph 13 d (new)
13d. Notes that inflationary shocks can indirectly increase the level of personal income tax in real terms considering that tax brackets are set in nominal terms (hidden taxation); calls on all Member States to automatically adjust personal income tax brackets to inflation to ensure the level of taxation remains constant if there is no political decision to change the level of taxation
Amendment 180 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
Amendment 181 #
Motion for a resolution
Paragraph 14 b (new)
Paragraph 14 b (new)
14b. Notes, in addition to the increased share of profit units contributing to domestic inflation, the growing repurchase of corporate stock (share buyback) in the Union; notes that the US Inflation Reduction Act foresees a tax equal to 1% of the fair market value of any stock of the corporation which is repurchased by such corporation during the taxable year and that it is expected to generate $79bn in ten years; calls on the Commission to assess the feasibility of a similar excise duty for the Union to disincentives the growing phenomenon of share buybacks that rewards shareholders instead of fostering new investments;