commission on fiscal imbalance 合集

This table is converted in euro in appendix ii

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Unformatted text preview: this change in taxation could engender from the standpoint of the same region’s tax base, e.g. more extensive work supply following a reduction in the tax on labour. It is also necessary to examine the cross effect on the other regions when the tax base, i.e. individuals, move from one region to another in order, for example, to take advantage of a more favourable taxation system. In conjunction with this study of the Lambermont agreement, we will not venture so far as to evaluate the effect of taxation on the behaviour of taxpayers or cross effects, although such information would be very valuable and research in this respect will certainly be published in the near future. Consequently, we are confining ourselves to estimating the cost (or loss of earnings), in absolute amounts, of an increase or a reduction in personal income tax pressure, all other things being equal. TABLE 3.1 ESTIMATE OF THE LOSS OF EARNINGS FOR A REGION FOLLOWING A TAX REFUND47 (in millions BEF) Estimated loss of earning for a tax refund Year Walloon region Brussels region Flemish region 2002 3 458 1 074 7 550 2003 3 614 1 112 7 931 2004 3 787 1 154 8 353 2005 3 971 1 200 8 802 2006 4 164 1 247 9 272 Source: FUNDP projections. Table 3.1 indicates that if the Walloon region wishes to reduce personal income tax by 1% for all taxpayers, it will cost it 3.5 billion BEF to do so in 2002. The corresponding figure for the Brussels-Capital region is 1.07 billion BEF, and for the Flemish region, 7.5 billion BEF. The purpose of this exercise is to point out that a tax refund is costly to a region and that it is not because a 6.75% reduction in personal income tax is allowed that region that it can necessarily implement such reductions. In 2004, for 43 44 45 46 47 208 These conditions are stated in article 20, §1 of the special act of January 6,1989 about the Court of Arbitration : « Moyen sérieux et préjudice grave et difficilement réparable ». Note that for the Court of Arbitration financial damages are usually not considered as a « préjudice difficilement répérable ». The council of state, in its provisional opinion, has noted that the framers of the special legislation are once again broadening the jurisdiction of the court of auditors without basing their decision on a capacitation explicitly stipulated in the Constitution (council of state 31.227/VR, page 53). Section 12 of the special act of July 13, 2001 inserting a section 9(a) in the special financing act. Section 12 of the special act of July 13, 2001 inserting a section 9(a) in the special financing act. This table is converted in Euro in Appendix II Commission on Fiscal Imbalance example, if the Flemish community wished to make use of the entire allowable margin, i.e. 6.75% of personal income tax revenues, it would cost it roughly 56 billion BEF to do so, equivalent to nearly 8% of its total budget. 4. FISCAL AUTONOMY WITH RESPECT TO REGIONAL TAXES 4.1. Background 4.1.1. The special financing act of 1989 Section 3 of the special financing act of January 16, 1989, as amended by the special act of July 16, 1993, defined a number of so-called...
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