Competitive pressure alone is unlikely to align distorted corporation tax rates

Article Abstract:

The European Commission's (EC) Ruding Committee has recommended that member states of the EC adjust their corporation tax rates so that they fall within a lower limit of 30% and an upper limit of 40%. This proposal, if enacted, would mean that countries with rates over 40% such as Germany, Greece and France would be required to lower their rates significantly, while low-rate countries such as the UK, Luxembourg and Spain would be prevented from lowering their rates further. The Ruding proposal endorses the idea of a lower limit as a means of ensuring that member states do not cut taxes arbitrarily in a misguided attempt to attract investment. Implicit in the Ruding proposal is the recognition of the notion that market forces alone will not lead to the much-needed alignment of the highly distorted system of national corporation tax rates currently prevailing in the EC states.

International affairs, Taxation, Column, Corporate taxes, Corporations, Tax policy

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Saddle-weary sponsors

Article Abstract:

The Tour de France is experiencing difficulty finding corporate sponsors. More and more companies are foregoing the annual international cycling event due to the rising cost of team sponsorship. A team of 10 to 15 world-class cyclists would incur about three million pounds sterling in annual expenses, cyclists' wages and bonuses. These expenses are becoming increasingly difficult to justify in an economic climate that calls for the implementation of cost-cutting measures in organizations. The risk of receiving bad publicity as a result of the association of the company's name with the poor performance of a sponsored cyclist is one main factor preventing many companies from participating in the cycling event. The growing popularity of other cycling competitions such as mountain biking serves as another problem for the Tour de France.

Economic aspects, Marketing, Sports sponsorship, Cycling, Tour de France (Bicycle race)

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Making the CAP fit

Article Abstract:

Europe's farm sector continues to receive a large chunk of the EC's budget even though it only accounts for 3% of the region'stotal production. In 1992, 50% of the EC's budget of 65 billion European economic unit is expected to go to the Common Agricultural Policy (CAP). Those who object to the Community's 'featherbedding' of European farmers are calling for the reform of the CAP. The EC has already submitted proposals that would reduce the prices of key agricultural products and would require 15% of land to be set aside from food production. These proposals were modified after EC agriculture ministers held meetings in May and Jul 1992. However, the introduction of these proposals is not expected to have any tremendous impact on Europe's agricultural industry.

General farms, primarily crop, Agricultural industry, Europe, Finance, Agricultural policy, European Union. Common Agricultural Policy

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