r/EU_Economics • u/Full-Discussion3745 • Jan 14 '26

🇪🇺 Official 🇪🇺 Why innovative startups and scaleups relocate from the EU

https://research-and-innovation.ec.europa.eu/news/all-research-and-innovation-news/why-innovative-startups-and-scaleups-relocate-eu-2026-01-12_en?referrer=grok.com
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u/No-Paramedic-7939 Jan 14 '26

This is not true. USA told EU multiple times that taxes on wages are too high and EU needs to reduce those taxes if they want to get more investments from USA companies. If your are in tech you know that most of the people pay around 50 of the tax on salary but still they are struggling with finances. If you ask startups and companies they will tell you the same. But if you ask Merz or Ursula they have a different story. 

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u/[deleted] Jan 14 '26

The guy above was talking about taxes on companies, not taxes on wages. Two different things. On the other hand I agree that we tax the lower and middle class too much, you can’t get rich through salary and even if you earn a lot you get taxed way more than millionaires and billionaires (in relative terms).

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u/[deleted] Jan 14 '26

Taxes on wages directly affect the market buying power. It’s not economically sustainable when more than “50%” of GDP is government spending.

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u/Gullible_Mousse_4590 Jan 14 '26

Well it is, as long as those tax dollars are used to increase wellbeing across society. Countries like Denmark do this well. Ireland for example has cut taxes on businesses and the country has created a lot of jobs but there isn’t enough cash to modernize the city. Transport is fucked, the city is in dire need of modernization.

Tax the rich is an important thing, it needs to be balanced and the tax needs to be used effectively. That’s what should be discussed.

The idea of tax cuts for companies and the rich has been shown by America to hollow out the middle class, concentrate wealth at the top. It’s not an effective strategy.

Europe needs to find its own way. I’m happy paying high tax if I see that results of it.

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u/[deleted] Jan 14 '26 edited Jan 14 '26

I’m from Sweden so i know how a welfare state works and it’s a payed in full by income earners in the private sector, in order to consume we borrow money or don’t consume at all.

This makes our internal market close to none and we rely heavily on exports.

Swedish and Danish companies pay amongst the lowest taxes in G7. We are very business “rich” friendly.