Tax revenues in the European Union: Recent trends and challenges ahead

Carone, Giuseppe and Nicodème, Gaëtan and Schmidt, Jan (2007): Tax revenues in the European Union: Recent trends and challenges ahead. Published in: Economic Papers (working papers series) No. 280 (May 2007)

Abstract

The governments of the European Union are facing important challenges that may impact both their need and their capacity to collect taxes. First, ageing will increase some social spending while reducing the potential of some tax bases such as labour. Second, globalisation has the potential to increase the mobility of capital and of high-skilled workers, making it more difficult to rely on them as a source of revenues. Finally, the desire to shift tax away from labour and to make work pay while retaining the social models will force Member States to find alternative robust tax bases. This paper reviews the most recent trends in taxation in the European Union and discusses several tax policy issues in the light of those coming challenges.

• Item Type: MPRA Paper
• Institution: European Commission - General Directorate Economic and Financial Affairs
• Language: English
• Keywords: Taxation; Welfare State; European Union; ageing; globalisation
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General; H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General; H - Public Economics > H1 - Structure and Scope of Government > H10 - General

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