1. In my view, tax subsidiarity does not mean that existing tax systems should be changed as little as possible. On the contrary, radical redesign may be called for in order to leave member states as much decision-making power as possible on tax coverage, tax bases and tax rates.
2. I use the term “tax harmonization” rather loosely as any change in the tax systems of the member states that is intended to forward the aims of the Community. In this sense, tax harmonization includes but is not confined to tax uniformity.
3. Exceptionally, local jurisdictions in Germany and Luxembourg impose low-rate Gewerbesteuern on producer sales (in combination with a tax on wages and capital), and no rebate is given on exports. Presumably, the origin principle is applied because these jurisdictions cannot effect border tax adjustments.