That was my first thought when, at the beginning of August, I came across a surprising addition in an executive order, the purpose of which is to strengthen efforts against crazy driving and cheating in the leasing area.
It was not so much that companies were now required to register all employees who have access to a company car for more than 30 days. For example, truck drivers and journeymen.
It was more the wording that all owners and users of the company cars are now jointly and severally liable for the periodic taxes.
In other words: if the boss doesn’t pay the taxes on the car, the employees are left with the bill.
Nordjyske was the first to bring that story, and the case caused a great uproar in the business world, which had already warned of the consequences before the new order was issued.
Both the administrative and financial burden of having to register all users of a vehicle and the blatant unfairness of employees being liable for debts they have nothing to do with.
Nevertheless, the executive order came into force – with two days’ notice. And then there would otherwise be media coverage before Tax Minister Jeppe Bruus pulled ashore. On his last working day at the ministry.
The executive order must now be amended so that employees who are provided with a vehicle are exempt from having to be registered as users of the vehicle. And thus not risk ending up with the bill if the boss doesn’t pay the car taxes.
And then one would otherwise think that the case was closed.
But it doesn’t deserve that.
What remains is an important and principled question about how on earth a civil service can sneak in such a crazy debt rule without any responsible politician catching it?
Certainly a civil service and a government whose purpose must be to ease the administrative burdens on hard-working business people – not impose new ones on them.
The explanation from hell was that the new executive order entailed such a trivial burden for the companies that it was not necessary to involve the Danish Parliament.
And apparently not necessary to listen to the calls of business.
Instead, the order was simply sent for consultation with OBR – “The Area for Better Regulation.” An agency that in this case lived up to everything but its name.
What remains is a “good day man, ax handle” process that deserves only a shake of the head, and which can hopefully serve as a lesson for the new tax minister, Rasmus Stoklund (S).
If he isn’t already busy figuring out how to change that stupid rule, he should make that a priority.
2024-09-11 17:45:15
#dumbest #rule #imagine #killed #big #question #remains
Table of Contents
Fair Taxation: A Crucial Aspect of Economic Policy
The recent controversy surrounding the executive order on company car taxes has sparked a heated debate about the fairness and efficacy of taxation policies. The order, which made employees jointly and severally liable for periodic taxes on company cars, was met with widespread criticism from the business community due to its administrative and financial burdens. This issue highlights the importance of fair taxation policies that promote economic growth and social equity.
Correcting Inequities in Taxation
President Biden’s fiscal year 2024 tax proposal aims to address the inequities created by the Trump administration’s tax cuts [[1]]. The proposal seeks to impose new taxes on unearned income and improve the child tax credit, demonstrating a commitment to building a fairer tax system that rewards work, not wealth. This approach can help reduce income inequality and promote economic growth.
Improving the Tax Code
The Biden administration has also taken steps to improve the tax code without relying on Congress [[2]]. By utilizing executive powers, the administration can make targeted changes to address specific issues, such as closing loopholes and simplifying tax compliance.
A Fairer Tax System for Working Families
The President’s budget proposal for 2024 aims to cut taxes for working families and ensure that big corporations and the wealthy pay their fair share [[3]]. This approach aligns with the administration’s goal of creating a more equitable tax system that benefits the majority of Americans.
Consequences of Unfair Taxation
The controversy surrounding the company car tax executive order demonstrates the consequences of unfair taxation policies. The initial order, which made employees liable for taxes on company cars, was widely criticized for its administrative and financial burdens. The subsequent amendment to exempt employees from registration as users of company cars highlights the importance of considering the impact of taxation policies on all stakeholders.
The Role of Civil Service and Government
The executive order controversy also raises questions about the role of civil service and government in shaping taxation policies. Governments should aim to ease administrative burdens on businesses and individuals, rather than imposing new ones. The explanation that the executive order entailed a trivial burden for companies, and therefore did not require parliamentary involvement, is unacceptable and highlights the need for greater transparency and accountability in policy-making.
fair taxation is a critical component of economic policy, and governments must strive to create a more equitable tax system that promotes economic growth and social justice. By addressing inequities, improving the tax code, and ensuring that corporations and the wealthy pay their fair share, governments can create a more sustainable and prosperous economy for all.
What is the role of taxation in the economy
Fair Taxation: A Crucial Aspect of Economic Policy
The recent controversy surrounding the executive order on company car taxes has sparked a heated debate about the fairness and efficacy of taxation policies. The order, which made employees jointly and severally liable for periodic taxes on company cars, was met with widespread criticism from the business community due to its administrative and financial burdens. This issue highlights the importance of fair taxation policies that promote economic growth and social equity.
Correcting Inequities in Taxation
President Biden’s fiscal year 2024 tax proposal aims to address the ine
