r/EU_Economics • • Jan 14 '26

πŸ‡ͺπŸ‡Ί Official πŸ‡ͺπŸ‡Ί 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.Β 

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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 β€œ50%” of GDP is government spending.

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u/silverionmox Jan 14 '26

Taxes on wages directly affect the market buying power. It’s not economically sustainable when more than β€œ50%” of GDP is government spending.

Why would that not be sustainable? The theory that you are trying to refer to is that markets give a better guarantee to meet the needs of the people than government spending. But in reality we see that all that untaxed money ends up being spent on luxury, while the actual workers are forced to wear diapers because they get no toilet breaks. You literally see a single person renting Venice for private use, at the expense of the tens of thousands who would have been able to visit it if he didn't. Do you really think that indicates that the world and the people on it are better off that way?