Tax Revenue in the European Union: Recent Trends and Challenges Ahead

European Economy Economics Paper No. 280

29 Pages Posted: 8 Apr 2011

See all articles by Giuseppe Carone

Giuseppe Carone

European Commission - DG ECFIN

Gaëtan Nicodème

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management; CEPR and CESifo The views expressed in the article are those of the author and should not be attributed to the European Commission.

Jan Host Schmidt

European Union - European Commission

Date Written: May 5, 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.

Keywords: Taxation, Welfare State, European Union, ageing, revenues, VAT, Labour taxation, Corporate tax, globalisation

JEL Classification: H10, H20, H50

Suggested Citation

Carone, Giuseppe and Nicodeme, Gaetan and Schmidt, Jan Host, Tax Revenue in the European Union: Recent Trends and Challenges Ahead (May 5, 2007). European Economy Economics Paper No. 280, Available at SSRN: https://ssrn.com/abstract=1803047 or http://dx.doi.org/10.2139/ssrn.1803047

Giuseppe Carone (Contact Author)

European Commission - DG ECFIN ( email )

BU-1 04/175
Brussels, Bruxelles B-1049
Belgium

Gaetan Nicodeme

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management ( email )

50 Avenue Roosevelt
Brussels 1050
Belgium

CEPR and CESifo The views expressed in the article are those of the author and should not be attributed to the European Commission.

No Address Available

Jan Host Schmidt

European Union - European Commission ( email )

Belgium

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