| 1. |
- Fink, Marian, et al.
(författare)
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Policy Recommendations on the Gender Effects of Changes in Tax Bases, Rates, and Units : Results of Microsimulation Analyses for Six Selected EU Member States
- 2019
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Rapport (refereegranskat)abstract
- The design of tax systems has a considerable impact on the personal distribution of income and wealth at the household and the individual level, and due to the gender-differentiated socio-economic conditions also in a gender perspective. One of the most important areas of taxation is the taxation of personal incomes through the personal income tax. It directly influences the after-tax distribution of incomes from the various income sources. Besides the level of income tax rates and the design of the income tax schedule (progressive versus flat tax schedule), the system of household taxation (joint versus individual taxation), the determination of taxable income and the design of tax exemptions (tax allowances versus credits), particularly child-related ones, are crucial determinants in this respect. In addition to the gender-differentiated distributional impact, income tax systems may also have a gender-differentiated effect on work incentives and the distribution of paid and unpaid work between men and women. It is important to note that these gender-differentiated effects imply an implicit tax bias of income tax systems which results from different socio-economic conditions and behavioural patterns of women and men, while modern income tax systems do not include any tax provisions linked to gender and thus do not contain any explicit tax bias.Against this background, the paper presents an overview of the microsimulation results for selected provisions of the personal income tax system done with EUROMOD for six selected Member States of the European Union (EU): Germany, Austria, Spain, Czech Republic, United Kingdom, and Sweden. These Member States were selected because they belong to different “families of taxation” with different traditions, institutional, historical and cultural factors and developments, and different religious and partisan influences shaping the evolution of (personal income) tax systems.Overall, our simulations show that the design of income tax schedules, systems of household taxation and (tax-related) child benefits has non-negligible effects on income distribution as well as work incentives in general and particularly from a gender perspective for the six EU Member States considered. Although the effects differ across countries, particularly on the level of household types, depending on the concrete design of the tax benefit system and the interactions between tax and benefit provisions, some general tendencies and effects can be identified.Firstly, the introduction of a flat tax hardly impacts the simulated poverty risk, but increases income inequality. Gender-differentiated effects are less clear-cut, and their extent differs across countries. However, generally a flat tax benefits couple households with a male active income contributor, while households with female active income contributors lose. Rather pronounced gender differences can also be found between active lone mothers and fathers. While in almost all countries active lone mothers lose from the introduction of a flat tax, active lone fathers are winners.Secondly, replacing individual taxation by a joint taxation system with income splitting has small effects on the poverty risk only, but decreases income inequality in all countries analysed. The introduction of joint taxation with income splitting benefits couple households with one active income contributor in almost all countries included, regardless of the existence of children and of the gender of the active income contributor. Gender-differentiated effects are almost non-existent in childless couple households with one active income contributor. They are a little more pronounced if there are children in the household, due to income differences between spouses.Thirdly, our simulations show that the various child benefits have the expected overall distributional effects. Replacing an existing child benefit granted as cash transfer by tax-related child benefits raises the poverty risk and income inequality. Moreover, the inequality- and poverty-increasing effect of a child tax allowance is estimated to be higher compared to that of a child tax credit. Gender-differentiated effects are not clear-cut and require deeper analyses.Overall, one central result of our analyses is that the extent of gender differences in the effects of the various simulation scenarios differs markedly across the countries included. It remains to be explored, in a next step, to what extent these cross-country differences in the gender-differentiated impact of policy measures are associated with the prevailing welfare state / family of taxation types.
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| 2. |
- Nerudová, Danuše, et al.
(författare)
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Report on behavioural model for measurement of the impacts of tax sharing mechanism under C(C)CTB
- 2017
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Rapport (refereegranskat)abstract
- The European Commission re-launches the CCCTB in Europe in its efforts to fight tax evasion and tax fraud via a two-step procedure. First, only a common corporate tax base (CCTB) would be implemented with the possibility of cross-border loss offsetting. A common consolidated corporate tax base (CCCTB) should be introduced only in the second step. The objective of this paper is to research the impact of both implementation steps on the amount of the tax bases allocated in all the EU Member States. We develop a behavioural model capturing the changes in the behaviour of the entities that can enter the C(C)CTB system voluntarily. The research revealed that in the group of large entities above the set threshold of EUR 750 mil. of consolidated turnover, which would be needed to enter the C(C)CTB system obligatorily, the implementation of CCTB would result in a decrease in the total tax base in the EU of 2.2% in comparison with the current situation; for CCCTB, the decrease would be 4.7%. In the dataset of SMEs under the assumption that all entities with existent cross-border losses would enter the CCTB system, the research revealed that it would result in a decrease in the total tax bases in the EU of 6.7% in comparison with the current situation. The impact of the CCCTB implementation in this dataset was quantified as the decrease in the total tax base in the EU of 46.0-58.6%. In the dataset of large entities not meeting the set threshold of EUR 750 mil. of consolidated turnover, the research revealed that assuming all entities with existing cross-border losses in this group would enter the CCTB system would result in a decrease in the total tax bases in the EU of 9.6% relative to the current situation. The impact of the CCCTB implementation in this dataset was quantified as a decrease in the total tax base in the EU of 16.43-26.79%.
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| 3. |
- Nerudová, Danuše, et al.
(författare)
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Sustainability-oriented Future EU Funding : The case of a C(C)CTB
- 2016
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Rapport (refereegranskat)abstract
- One of the most serious criticisms of the status quo with respect to the EU budget represents the lack of a link between the EU policy and the system of own resources. Strengthening the link between reaching smart, sustainable and inclusive growth and the EU system of own resources by introducing tax-based own resources could contribute to decrease the existing sustainability gaps in taxation in the European Union. This research demonstrates that the introduction of the Common (Consolidated) Corporate Tax Base (hereinafter as C(C)CTB) could be an important contribution to close the existing sustainability gaps in tax regimes in the EU. To research the revenue potential of the C(C)CTB, a model based on a remittance system was designed. The system foresees the replacement of the VAT-based own resource (resp. GNI-based own resource) through the transfer of a part of the corporate tax revenues based on the C(C)CTB raised on the national level to the EU budget. The results of the research show that the C(C)CTB-based own resource would be able to fully replace the VAT-based own resource, with the only exception of Cyprus. However, the C(C)CTB-based own resource cannot be considered to be a sufficient resource to fully replace the GNI-base own resource. Therefore, we recommend C(C)CTB only in connection with the replacement of the VAT-based own resource.
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| 4. |
- Nerudová, Danuše, et al.
(författare)
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Sustainability-oriented Future EU Funding : A Fuel Tax Surcharge
- 2018
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Rapport (refereegranskat)abstract
- The paper analyses the potential of a surcharge on national fuel taxes as sustainability-oriented own resource to finance the EU budget. Our estimations show that such a surcharge could yield substantial revenues, ranging between € 12.93 billion (for a surcharge of 0.03 €) and 86.2 billion (for a surcharge of 0.2 €) per year. Besides the contribution an EU fuel tax would make to various sustainability-related EU goals and strategies, it would help to address two specific problems inherent in the current EU system of fuel taxation. An EU fuel tax designed as a surcharge on national fuel taxes would decrease the existing tax bias in favour of diesel, as the surcharge would be levied uniformly on gasoline and diesel, which in most EU Member States is taxed at lower rates, alike. Moreover, by increasing national fuel tax rates, the surcharge would – depending on its level – mitigate or even remove the “under-taxation” of fuel in relation to the minimum fuel tax rates stipulated in the EU Energy Tax Directive in a number of Member States, which is caused by the absence of regular inflation adjustment of nominal fuel tax rates.
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| 5. |
- Nerudová, Danuše, et al.
(författare)
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The Financial Transactions Tax as Tax-based Own Resource for the EU Budget
- 2017
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Rapport (populärvet., debatt m.m.)abstract
- Key FindingsA broad-based financial transactions tax presents itself as a suitable instrument to simultaneously raise revenues and curb highly speculative and potentially destabilising short-term financial transactions.The introduction of an FTT within Enhanced Cooperation in the EU may serve as a pilot, representing the first step towards an EU-wide implementation.Under a Brexit scenario, an FTT introduced by a “Coalition of the Willing” including 10 EU Member States could yield € 4 to € 33 billion.The FTT is an interesting option for tax-based own resources partially substituting current own resources to finance the EU budget, allowing Member States to cut their national contributions to the EU budget and thus creating budgetary space to cut national taxes more harmful for growth and employment (in particular the high taxes on labour).
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| 6. |
- Schratzenstaller, Margit, et al.
(författare)
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EU taxes as genuine own resource to finance the EU budget : pros, cons and sustainability-oriented criteria to evaluate potential tax candidates
- 2016
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Rapport (refereegranskat)abstract
- EU taxes play a key role in political and economic discussions about the future of the EU own resource system, and their desirability can vary accordingly. It is therefore essential to clearly articulate the goals which are to be achieved by the introduction of this new financing tool. This paper provides a critical overview of advantages and disadvantages of EU taxes. Reviewing the conventional fiscal federalism and political economy literature on this topic it can be concluded that there is no obvious (overall) case for funding the EU budget with EU taxes rather than with contributions by Member States which currently make up for the lion’s share of EU own resources. There are, however, some specific issues arising from a sustainability perspective, which could be addressed with the introduction of EU taxes. Departing from a comprehensive concept of sustainability, which is based on the economic, the social, the environmental and the cultural/institutional pillar of sustainability, the paper reviews sustainability gaps in taxation in the EU. EU taxes if designed accordingly may be suitable instruments to reduce these sustainability gaps. The paper also develops criteria based on the four dimensions of sustainability that may be used in a next step to evaluate potential candidates for EU taxes.
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| 7. |
- Solilová, Veronika, et al.
(författare)
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Sustainability-oriented Future EU Funding : A Financial Transaction Tax
- 2016
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Rapport (refereegranskat)abstract
- Although the responsibility for realizing the Europe 2020 strategy is shared between the EU and its 28 member states, the main criticism of the current EU budget relates to the lack of a link between the budget and Europe 2020 strategy. Therefore a new budget design as well as alternative revenue sources is currently explored within a mid-term review. One of the possible candidates is a Financial Transaction Tax (FTT). To research FTT revenue potential, a model based on a remittance system was designed. We analyse full or partial replacement of VAT- and GNI-based own resources by the transfer of the tax revenues from a FTT raised on a national level to the EU budget. The research reveals that FTT-based own resources would be able to fully replace GNI-based own resources and VAT-based own resources only for some EU member states. However, the results also show that, from the EU11 (28) perspective, the tax is sufficient to fully replace VAT- or GNI-contributions if levied on the EU11 (28) level (not on the national level) as a direct payment to the EU budget without tracking the source Member State.
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