That's not the issue. If your business is dependent on slave labor and offloading your externalities on the society to make a profit it simply means your business should not exist.

Its evident that labor cost and taxes are not excessive in EU by the reality of existence of plenty of businesses in a healthy society.

What doesn't exist in EU is the "tech" business, and the tech doesn't have margins too slim to employ people and pay taxes. On the contrary, the margins are fat. The reason that the tech sector isn't a large one in EU is that its easy to incorporate in USA and access the full EU market from there instead of incorporating in some small EU country and deal with their bureaucracy and internal border limitations. The 28th regime and the EU-INC is to address exactly that.

If the USA-EU relations deteriorate enough, it will also create instant trillion Euros market. Just look at the quarterly reports of US tech giants, they generate EU revenues that are not that behind the US revenues. For Apple thats %60 of the US revenue, or ~110B$ for the last quarter and that's happening despite Apple having a much smaller market share in EU.

A full blown conflict between US-EU will be a huge opportunity to replicate the US tech sector in EU and having an EU-INC will be the necessary facilitator that is currently missing when compared with the landscape in USA.

> the issue with EU is the taxes and cost of labour.

450 million and counting people would still prefer to live and work in the EU than anywhere else.

Even more so with present geopolitics, to put it politely !

I haven't come across a single list of problem from business orgs that lists EU or local taxes, even if particularly high (California, Canada?), as a problem.

Usually, high taxes go hand in hand with high quality welfare state. Contrary to popular belief, the vast majority of business ppl are educated and understand the added value of an accessible publicly funded healthcare, pension and education system.

Commonly listed (and perennial business problems) are: unstable political environment (in the sense that tax law changes every four years, complex legal system, so long term planning is impossible), corruption (meaning you have to know who to bribe to get the job done), crime rates and lack of infrastructure.

Neither of which are actually an issue - companies earn money after all. Nobody complains that SF engineers earn (and thus cost) six figures.

While that’s also true, the EU varies widely. The tax wedge is very low in places like Czechia or Lithuania and very high in France and Germany. If you add other European countries you get some of the lowest taxes on earth in places like the Isle of Man or Switzerland.

Having said that, the lack of proper integration is a huge problem, like imposing tarrifs of over 100% on ourselves.

If I understand correctly, the plan is to add a virtual state to address this.

California’s taxes and cost of labor combined are surely up there.

Besides a fractured market with lots of different bureaucracies to deal with, the lack of at-will employment is a big labor cost when you need to be able to quickly spin up or spin down operations.

Welfare should always be a responsibility of the government, not businesses. Let businesses business and let government redistribute wealth.

Labour is much more expensive in the USA, and other taxes are very comparable. And the USA is the startup capital of the world.