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Tax Systems in European Union Countries

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Author Info
Isabelle Joumard ()

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Abstract

The tax-to-GDP ratio rose steadily in most EU countries up to the late 1990s, largely reflecting a sustained expansion of public sector commitments to welfare provision. Since the late 1990s, many EU countries have cut tax rates. However, the tax burden in the EU area remains much higher than in most other economies. The tax mix is also different, with high tax wedges on labour and a stronger reliance on consumption and environmentally-related taxes. Recent measures targeted at lowering the tax burden on labour, in particular at the lower end of the income scale, have had promising results in terms of employment growth, showing how tax design is an important influence on countries’ performances. While there is not much room for cutting taxes significantly without downsizing public spending, further rebalancing the tax burden away from labour could contribute to better employment performance. Greater reliance on property taxes, which are low by international standards, could be ...


La pression fiscale a augmenté sensiblement jusqu’à la fin des années 90 dans la plupart des pays de l’Union européenne, reflétant notamment des engagements croissants du secteur public en matière de protection sociale. Depuis la fin des années 90, de nombreux pays de l’Union européenne ont abaissé leur taux d’imposition. Néanmoins, la charge fiscale dans la zone UE reste plus élevée que celle observée dans la plupart des autres économies. La répartition de la charge fiscale diffère aussi ; les revenus du travail sont lourdement taxés et les impôts sur la consommation et ceux dit “verts” représentent une part plus importante des recettes fiscales. Les mesures adoptées ces dernières années pour réduire la charge fiscale sur le travail, en particulier pour les personnes les plus faiblement rémunérées, ont eu des résultats prometteurs sur la création d’emplois, montrant combien le système fiscal peut influencer les performances économiques des pays. La marge de manœuvre pour réduire ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 301.

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Date of creation: 29 Jun 2001
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Handle: RePEc:oec:ecoaaa:301-en

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Related research
Keywords: taxation fiscalité tax policy politique fiscale European Union Union européenne

Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
H2 - Public Economics - - Taxation, Subsidies, and Revenue
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions

Cited by:
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  1. Davide Tondani, 2005. "Tax system and reforms in Europe: Spain," Public Economics 0511002, EconWPA. [Downloadable!]
    Other versions:
  2. Michael Funke, 2002. "Determining Taxation and Investment Impacts of Estonia's 2000 Income Tax Reform," Finnish Economic Papers, Finnish Society for Economic Research, vol. 15(2), pages 102-109, Autumn. [Downloadable!]
  3. Marc Rapp & Bernhard Schwetzler, . "Asset Prices in the Presence of a Tax Authority," German Working Papers in Law and Economics 2006-1-1167, Berkeley Electronic Press. [Downloadable!]
  4. Frank Bönker, 2003. "Steuerpolitische Aspekte der EU-Osterweiterung," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(4), pages 522-534. [Downloadable!] (restricted)
  5. Signe Krogstrup, 2002. "What do Theories of Tax Competition Predict for Capital Taxes in EU Countries? A Review of the Tax Competition Literature," HEI Working Papers 05-2002, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  6. Silvia Rocha-Akis, 2006. "Labour tax policies and strategic offshoring under unionised oligopoly," Department of Economics Working Papers wuwp099, Vienna University of Economics and B.A., Department of Economics. [Downloadable!]
  7. Michael Funke, 2002. "Determining the Taxation and Investment Impacts of Estonia´s 2000 Income Tax Reform," Quantitative Macroeconomics Working Papers 20204, Hamburg University, Department of Economics. [Downloadable!]
  8. Marc Rapp, . "Security Income Taxes in a Dynamic Semi-Closed Economy," German Working Papers in Law and Economics 2006-1-1162, Berkeley Electronic Press. [Downloadable!]
  9. Koen Burggraeve & Philip Du Caju, 2003. "The labour market and fiscal impact of labour reductions: the case of reduction of employers' social security contributions under a wage norm regime with automatic price indexing of wages," Research series 200303-1, National Bank of Belgium. [Downloadable!]
  10. Rasmus Kattai & Kaie Kerem & Kadrin Keres & Martti Randveer, 2004. "Fiscal Policy as a Determinant of Consumption Expenditure: The Estonian Case," Working Papers 111, School of Economics and Business Administration, Tallinn University of Technology. [Downloadable!]
  11. Fachinger, Uwe, 2003. "Selbständige in der EU: Einige Anmerkungen zu den Problemen ihrer sozialen Absicherung," MPRA Paper 1129, University Library of Munich, Germany. [Downloadable!]
  12. Bruno Chiarini & Elisabetta Marzano & Francesco Busato & Pasquale De Angelis, 2007. "State Aid Policies and Underground Activities," Discussion Papers 4_2007, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy. [Downloadable!]
  13. Giuseppe Carone & Aino Salomaki, 2004. "Reforms In Tax-Benefit Systems In Order To Increase Employment Incentives In The Eu," Labor and Demography 0410005, EconWPA. [Downloadable!]
    Other versions:
  14. Olivier Blanchard, 2004. "The Economic Future of Europe," NBER Working Papers 10310, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  15. Luigi Bernardi, 2005. "Tax Reforms in Italy and in Europe: An Introduction," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(2-3), pages 139-158, November. [Downloadable!]
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