The Wall Street Journal reports that the Europeans are threatening to boot Hungary out of the EU and punish them financially because its “nationalist government” is “undermining the bloc’s Democratic values.”
These are laughable claims. It is true that Hungary’s government is far from exemplary (they’ve tended to side with the Russians in the invasion of Ukraine), but this assault on Hungary has nothing to do with “Democratic values.” Prosperity and freedom are the most important values and the EU is now a gang of socialist shrinking economies. Nearly the entire continent is mired in deep recession thanks to green energy foolishness, high tax rates, low productivity, big government socialism initiatives, and a collapsing currency.
So why is Hungary being targeted? Because they’ve courageously decided to stand up for their national sovereignty and have refused to join the tax cartel concocted by Biden, Treasury Secretary Janet Yellen, and the European Union, which would force low tax nations to raise their tax rates to a “global minimum” of 15%. (How pathetic that the United States is not joining Hungary in staunch opposition.)
The chart below shows that other than a few Caribbean countries, Hungary has the lowest tax rate – well below most of the other EU nations. That’s the real reason the European leaders want them out.
Corporate Tax Rates in Selected Countries
- Hungary 9%
- Montenegro 9%
- Ireland 12.5%
- Spain 25.5%
- Italy 28%
- France 28%
- Germany 30%
- EU Average 24%
- United States 25% (including state tax rates)
As for the U.S., when Republicans take over Congress in January next year, they should immediately take action to withdraw from the Biden-Yellen-EU tax cartel. This should be treated like an international treaty requiring a two-thirds vote of the Senate for ratification.