Thread by @spornschlegel

A relatively niche but crucial area in which EU really need to create a common framework: TAXES. I have experienced first-hand how incredibly old-school and uncoordinated European tax regimes are - and how utterly contradictory it is with freedom of movement. A thread. /1

Everyone knows, there are no common tax rules in the EU (beware, it's nat. sovereignty!) This means that despite freedom of movement, it is difficult to understand under which tax regime one falls, e.g. when someone has different incomes from two different EU member states. /2

An example: Belgium and Germany have signed a tax treaty in 1967 (!), which has been slightly amended still - but most of the treaty still remains valid until now. No need to mention that the labour market, jobs and work environments have *slightly* changed since then. /3

That means that the treaty does not include a vast number of jobs and remunerations, which then are treated as case-by-case decisions by the tax authorities - once you know under which tax regime you fall. And many EU MS do not even have bilateral treaties. /4

This creates high legal uncertainty - which is already not the strengths of some EU member states (Germany, I'm looking at you with "Gemeinnützigkeit" and scholarships). Especially for SMEs & self-employed people, this creates huge burdens. /5

When one is not a multinational corporation, this means that you need the time, money and/or the expertise to understand HOW and IF you need to pay taxes. Not to mention the uncertainty. That is everything but citizen- and SME-friendly, and definitely not "European" in spirit. /6

While goods & services travel freely within the SM, citizens cannot enjoy their freedom of movement fully - because besides COVID-19 travel restrictions, those burdens make mobility more of a headache than anything else. /7

This is without mentioning the headache it is to move countries within the EU - health insurance, social security & pensions are all national, and thus you need to change everything once you decide to move. Ok, we don't need visas, but that's about it. /8

W/ more remote work, bi-national families & relationships; a generation of Europeans that have never known borders: Isn't it about time to coordinate tax regimes, make moving to a different country as easy as w/in a MS & create the conditions for a "Europe of citizens"?/9

Looking at you, @BMF_Bund @SPFFinances @dgfip_officiel @OlafScholz @alexanderdecroo @BrunoLeMaire @ThierryBreton @PaoloGentiloni. As I am not a tax expert, happy to get feedback & additions to this hugely important topic! /10