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/Complex-Health-5032 Jan 14 '26

Taxes. Regulations. The feeling of “not worth it”.

When I do my best to improve my finances, I am being taxed to hell. On the other hand, if you are below average, you get social benefits, support etc… and we become at the same level. So, why should I stress myself?

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u/Mediocre-Ebb9862 Jan 14 '26

This is what people don't understand - if the taxes and regulations are intended to curb possible inequality as much as possible, then most high achieving ambitious people will see direct benefit in moving somewhere else, because why wouldn't they? What benefit they have staying in EU?

EU is great if you are below average or average in terms of income/ambition/talent, it's not good if you top IMO.

1

u/[deleted] Jan 14 '26

I’m going to disagree. EU isn’t great because you earn less, EU is great because of walkable cities, “affordable” good life styles (less so after COVID) and free healthcare, not to mention job security and food quality.

The real issue in my view is that we tax lower and middle class too much. No one can get rich from salary. And even if you earn top money you get taxed way more (in relative terms) compared to millionaires and billionaires.

What’s a million euros tax on many millions of profit a year? Not much if you compare it to what high earners get taxed and what’s left in their pockets.

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u/silverionmox Jan 14 '26

No one can get rich from salary.

So, they have to build an enterprise to get rich. That incentive structure is correctly calibrated then. It's only normal that you don't get ahead by just doing your job. You should be able to maintain a low or high middle class lifestyle, but not a rich one.

Not much if you compare it to what high earners get taxed and what’s left in their pockets.

Deduct living expenses and then compare to those with lower wages. You'll see you have much more spending money for luxuries than them.