Following the success of the vote for Britain to withdraw from the European Union, many Americans renewed talk of the possibility of American states seceding from the United States. When we consider the size and wealth of some American states, especially the larger ones, we find that many American states, are comparable both in size and wealth to many European counties. Once accomplished, independence does not present any more impediments to success than it does in Denmark or Switzerland.
On the other hand, thanks to the regime of direct taxation (primarily the federal income tax) used in the United States that transition to independence would be far more difficult than it would be for a country that withdraws from the European Union. One major factor that eases the secession of member states in the EU is the fact that European Union is not primarily funded by direct taxes on Europeans, but mostly by remittances from member states.
According to EU budget documents, funding sources for the EU include "contributions from member countries, import duties on products from outside the EU and fines imposed when businesses fail to comply with EU rules." This includes "a small percentage of gross national income (usually around 0.7%) contributed by all EU countries — the largest source of budget revenue.".... Read more
On the other hand, thanks to the regime of direct taxation (primarily the federal income tax) used in the United States that transition to independence would be far more difficult than it would be for a country that withdraws from the European Union. One major factor that eases the secession of member states in the EU is the fact that European Union is not primarily funded by direct taxes on Europeans, but mostly by remittances from member states.
According to EU budget documents, funding sources for the EU include "contributions from member countries, import duties on products from outside the EU and fines imposed when businesses fail to comply with EU rules." This includes "a small percentage of gross national income (usually around 0.7%) contributed by all EU countries — the largest source of budget revenue.".... Read more
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