EU Proposes Progressive Corporate Tax Targeting Large Firms

The European Union is preparing to introduce a new corporate tax targeting companies with annual net turnover exceeding €50 million. The draft proposal, set for release next week, outlines a progressive levy system where firms with higher revenues pay more. This measure aims to create a "corporate resource for Europe" as part of broader budget reforms.

Non-EU multinationals operating in the bloc WOULD also fall under the tax's scope. The Commission defines net turnover as revenue after taxes and subsidies, capturing a company's true economic footprint. Critics argue the move could dampen Europe's competitiveness amid sluggish growth and high energy costs.

JPMorgan Chase CEO Jamie Dimon recently warned European businesses are losing ground to US and Chinese rivals. EU officials counter that the bloc can no longer rely on traditional funding mechanisms. The proposal marks a potential shift in how Europe finances its budget cycle.