By Finian Cunningham | Strategic Culture Foundation | October 23, 2026

There is a straightforward way to alleviate the social chaos sweeping Europe, as well as the war in Ukraine threatening to engulf the continent. It’s an easy fix – and it’s not shoving more white powder up Zelensky’s nose paid for by European taxpayers.

European leaders just have to find the resolve to stop fueling the war against Russia and engage in diplomacy with Moscow to establish an all-encompassing security architecture (as Russia had proposed back in December 2021). That, in turn, will salvage European nations from unsustainable debt driven by militarism and propping up a kleptocracy in Kiev, whose puppet leader is obviously degenerating from cocaine addiction.

Across Europe, cities are looking like battle zones with mass protests, public tensions, buildings burning, shops looted, riot police baton-charging crowds, and masked mobs running amok. France is bearing the brunt of street violence, but so too are Italy, Belgium, and others. Spain and Portugal are seeing their cities turned into tent camps in protests against a lack of affordable housing.

In the turmoil, it is easy to lose sight of the basic problem. People en masse are suffering from economic privation. Why can’t their individual and social needs be met in an efficient and effective manner? Why is there seemingly no money to fix broken societies?

Curfews are declared in Paris and cities across France while Italy moves to deploy soldiers in Milan to restore a semblance of order. Thousands of arrests have been made in recent days. Revolution is in the air, and so too is the sinister possibility of supposedly democratic governments flipping to become police-state dictatorships.

In this volatile, explosive situation, it is tempting to look for scapegoats.

French President Emmanuel Macron goes on national television to denounce “ultra-left groups” who he says are mindlessly trying to destroy France.

Even American President Donald Trump weighs in to claim that a once great nation (France) is being “conquered by immigrants, jihadists and communists.”

There were also predictable accusations in Western media that Russia is fomenting the unrest across Europe.

Another misdirection is to portray the European governments as cash-strapped and unable to deliver relief from the cost-of-living crisis and deteriorating public services. The governments and media tend to define the problem as one of balancing fiscal bookkeeping, overspending on social welfare, aging populations, or some other demographic factor.

European nations, we are told by pundits, are in massive debt and under pressure from bond markets to ramp up austerity by slashing public spending. The challenge for France and other governments is that they “no longer have the fiscal room to simply throw more money at these problems,” as one commentator put it.

Another commentator lamented that: “Hamstrung governments seem to have no answer to the public’s furious demands, making further discontent likely.”

In other words, we are told, “there is no alternative to austerity,” to paraphrase the late British leader Margaret Thatcher.

But that premise deceptively tells only part of the picture. The crucial part omitted is that the fiscal crunch of European governments is largely caused by the reckless funnelling of money to fuel the war in Ukraine and inordinately build up their own military forces. That wasteful misallocation of resources is “justified” by relentlessly and absurdly demonizing Russia as a “threat to Europe”. The news media play the role of amplifying the propaganda.

The media do not question, never mind expose, how Europe’s economies have been exhausted by a proxy war agenda against Russia that has involved cutting themselves off from Russian affordable energy, the lifeblood of industry, and on top of that racking up hundreds of billions in debt by propping up the endemically corrupt Kiev regime.

That regime is losing the war against Russia as it runs out of conscripts for the meat grinder. Yet, European governments are fixated on keeping the futile war going with ever more funding of the regime.

Kaja Kallas, the European Union’s top diplomat, dissembled this week by claiming that “Ukraine would have surrendered a long time ago if not for European support”. This is a tacit admission that the EU and Britain are fueling the war.

She also accused the Trump administration of forcing Ukraine into a surrender. In her soulless view, diplomacy and peace are sneered at as surrender.

European societies are deprived of financial resources for vital public services and infrastructure all in the fraudulent name of “defending” Ukraine in a war that has gone on for nearly five years. There is no end in sight if the European leaders have their way.

The European Union’s unelected bureaucracy has donated €90 billion to the Kiev regime for 2026 and 2027 alone, in addition to over €200 billion already allocated. This largesse is still not enough. The Zelensky dictatorship is calling for an extra €70 billion to be doled out, and the EU Russophobic elites are clamoring to oblige.

No wonder that European societies are visibly falling apart from underinvestment and widespread hardship from the soaring cost of living. The social implosion is a direct consequence of a policy of militarism and war, a policy that the Euro elites are running with impunity and unaccountability. That’s dictatorship by any definition.

The depiction of fiscally constrained and helpless European governments is an illusion. The constraint is not a natural condition of societies. It is the consequence of a deliberate, criminal policy of warmongering.

So spare us the scapegoating and misdirection. Spare us the curfews and calls for emergency police state powers to curb “hooligans and extremists.” That misdirection is playing into the hands of the ruling class, which has delegitimized itself by its sponsoring of war in Ukraine, its support for American aggression against Iran and Yemen, and its complicity in Israeli genocide in Gaza and Lebanon.

Contrary to the politicians and pundits claiming that there is “no easy fix” to the chaos erupting in Europe, there is. It is for the European governments to stop fueling the war in Ukraine and actually manage societies according to democratic needs.

However, that rational and feasible solution is probably out of reach under the prevailing political system. The elites in control of the system are incapable of overseeing any meaningful reform. They will not engage in diplomacy to find a peaceful settlement in Ukraine with Russia.

And so the outcome seems to be either they consolidate the emerging dictatorship and quash the legitimate social demands of the people, or the people will prevail by sweeping away the corrupt regimes that masquerade as “democratic”.

An old idea springs anew as a chorus of influential voices predicts that AI may trigger crises of vast magnitude

In a preface to his book Capitalism and Freedom, the American economist Milton Friedman famously observed that a crisis can propel once-fringe ideas into the political mainstream.

“Only a crisis – actual or perceived – produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around,” he wrote. The job of intellectuals, thinktanks and economists, he argued, is to refine the quality of these ambient ideas, so that good ones are ready when disaster strikes.

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© Photograph: Oscar Wong/Getty Images

© Photograph: Oscar Wong/Getty Images

© Photograph: Oscar Wong/Getty Images

Politicians may not like it, but the countries they misgovern compete with one another for businesses, people, and capital. To attract startups, entrepreneurs, and investors, governments have to offer attractive environments, or else lose out to friendlier nations. When it comes to tax competitiveness, a new report says that Estonia leads the way in first position, with the United States lagging at 17th.

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Low Rates and Simplicity Make Countries More Attractive

"The structure of a country's tax code is a determining factor of its economic performance," write Alex Mengden and Luis Zarka for the Tax Foundation's International Tax Competitiveness Index 2026. "A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government's priorities. In contrast, poorly structured tax systems can be costly, distort economic decision-making, and harm domestic economies."

The report notes that competition among countries has resulted in widespread improvements (and some backsliding) across the world in recent years. Especially among members of the Organization for Economic Cooperation and Development (OECD), marginal tax rates on corporate and individual income have declined. That said, most governments haven't given up on milking their populations, with growing reliance on payroll taxes and value-added taxes (VAT).

On the other hand, while "corporate tax base improvements have occurred in Canada, Germany, Lithuania, the United Kingdom, and the United States," France, the Slovak Republic, and Slovenia have hiked corporate tax rates. Even worse, tax policy has moved in many countries from a revenue-raising measure into a weapon of economic warfare "deployed to exert economic pressure."

The Tax Foundation's index ranks countries on the degree to which they keep their tax systems competitive—with low rates—and neutral, with minimal social engineering to avoid economic distortions.

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Estonia Is First, France Last, With the U.S. in the Middle

According to these criteria, Estonia scores in first place for the best tax code in the OECD for the 13th straight year. According to Mengden and Zarka, the tiny Baltic state earns this distinction for four reasons:

First, it has a 22 percent tax rate on corporate income that is only applied to distributed profits. Second, it has a flat 22 percent tax on individual income that does not apply to personal dividend income. Third, its property tax applies only to the value of land, rather than to the value of real property or capital. Finally, it has a territorial tax system that exempts 100 percent of foreign profits earned by domestic corporations from domestic taxation, with few restrictions.

By contrast, France comes in dead last with the highest top corporate tax rate (36.1 percent) in the OECD, on top of which are "multiple surtaxes and distortive production taxes." France "also applies multiple distortionary property taxes with separate levies on estates, bank assets, and financial transactions, in addition to a wealth tax on real estate. Its VAT covers about 50 percent of final consumption, and it has one of the highest VAT registration thresholds."

The United States ranks at 17, down one place from last year. Among the U.S.'s weaknesses is that its "real property tax burden is among the highest in the OECD" and "the US has a partial territorial system and does not exempt foreign capital gains income." On the plus side, Americans pay relatively low sales/consumption taxes (an average of 7.5 percent, while the OECD average is 19.4 percent).

Not discussed in depth in the index, but still important, is that the U.S. is one of two countries (along with Eritrea) that base income taxation on citizenship rather than residency. "A Canadian living in France pays French taxes, not Canadian ones. An American in France? They pay French taxes and still file with the IRS," notes Bright!Tax. The U.S. tax obligation can be offset for nonresidents, but only by jumping through more bureaucratic hoops.

By and large, countries score better on the index by keeping tax rates low and broadly applied, emphasizing simplicity, and keeping their systems neutral to raise revenue and encourage investment, rather than achieve social and political goals.

Not everybody shares the Tax Foundation's preference for low burdens and minimal complexity. In its 2022 report on Lithuania's tax system (ranked a commendable 5th by the International Tax Competitiveness Index 2026), the OECD urged the country to increase taxes on businesses and self-employed people, and to increase reporting requirements. The OECD apparently favors higher tax burdens and complexity. Keeping the OECD happy would undoubtedly make Lithuania (or any country) less attractive to investors and entrepreneurs.

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The U.S. Scores Better on Overall Economic Freedom—Though It's Losing Ground

While the index's middling score for the U.S. on tax competitiveness is disappointing, if understandable, it's not the final word on a country's economic attractiveness. In the Fraser Institute's recently published Economic Freedom of the World 2026 report, the U.S. ranks a credible 5th place, based on 2024 data. It comes in after Hong Kong, Switzerland, Singapore, and New Zealand. The formerly British and now Chinese territory of Hong Kong remained in the leading position despite erosion in economic liberty to accompany its sadly decaying civil liberties status. That's a worldwide concern.

"Global economic freedom fell following the pandemic as policymakers imposed new regulations, raised barriers to trade, expanded the size of government, and then printed money to pay for spending," wrote the Fraser Institute authors, including the late James Gwartney. "While governments have begun to reverse these policies, economic freedom in the average country has not yet returned to pre-pandemic levels."

Unfortunately, the U.S. is forecast to slide two positions in next year's Economic Freedom report because of "increases in the size of government, weaker protection of property rights and the rule of law, and significant restrictions on trade freedom."

Improving the U.S. tax environment might help to improve America's economic freedom score. Then again, so would reducing government's role and discontinuing protectionist policies.

Tax competitiveness is one important element of any country's overall economic freedom, which creates an attractive environment to invest, create businesses, and generate prosperity. The U.S. has long thrived because it is, in relative terms, free. That's a status worth maintaining.

The post The U.S. Tax System Gets a Middling Score appeared first on Reason Magazine.

Economic fallout from war in Middle East adds to pressures on consumers and on chancellor before budget

Consumer confidence in the UK has fallen at the fastest rate outside the Covid pandemic since the 2016 Brexit vote as the escalating economic damage from the war in the Middle East hits Britain.

With less than a week before John Healey’s first budget, the latest barometer from the data company GfK indicated confidence plunged by 11 percentage points in October to -24 amid pressure on consumers from the rising cost of living.

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© Photograph: Murdo MacLeod/The Guardian

© Photograph: Murdo MacLeod/The Guardian

© Photograph: Murdo MacLeod/The Guardian