Unformatted text preview: l practice and that recommended by the OECD in respect of international tax
treaties and largely adopted by countries. Such a change would engender a marked increase in the portion of personal
income tax allocated to the Brussels Region” (Gérard, 1999, translated). Precisely because of this highly symbolic
reference to international treaties, Valenduc (2002) rejects this suggestion but proposes an alternative mechanism
offering similar characteristics in favour of Brussels.
26 190 All of the municipalities surrounding Brussels are located in Flemish territory. Even in the south and the east, i.e. toward the territory of the Walloon
Region, there is always at least one Flemish municipality between Brussels and Wallonia. The majority of residents in the circle of Flemish
municipalities around Brussels, where in several instances the majority of the population is French-speaking, and the first Walloon municipalities to
the east and south, work in Brussels. Commission on Fiscal Imbalance 27 It is clearly a question of finding a solution to the problem of financing Brussels. The means used are hardly important:
more extensive aid from federal authorities, a contribution from the other Regions at the expense of a capital whose
administrative territory, “permanently” confined and delineated, reflects neither a residential, cultural nor an economic
area, or a different breakdown of shared personal income tax revenues that takes into account the place of its
production and thus its source.
To conclude this study of Belgian federalism with Brussels’ situation is to conclude by evoking its most sensitive point. 27 See Lambert, Tulkens et al. (1999, 2000) concerning the financing of Brussels. 191 Commission on Fiscal Imbalance REFERENCES
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