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

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Author Info
Carone, Giuseppe
Nicodème, Gaëtan
Schmidt, Jan

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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.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3996.

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Date of creation: 11 Jul 2007
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Handle: RePEc:pra:mprapa:3996

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Related research
Keywords: Taxation; Welfare State; European Union; ageing; globalisation;

Find related papers by JEL classification:
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
H10 - Public Economics - - Structure and Scope of Government - - - General

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This item is featured on the following reading lists:
  1. European Public Finance (ECON-O-403)
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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    Other versions:
  7. Axel Dreher & Jan-Egbert Sturm & Heinrich Ursprung, 2006. "The Impact of Globalization on the Composition of Government Expenditures: Evidence from Panel Data," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  8. Huizinga, Harry & Laeven, Luc & Nicodeme, Gaetan, 2006. "Capital Structure and International Debt Shifting," CEPR Discussion Papers 5882, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  9. Tanzi, Vito & Schuknecht, Ludger, 1997. "Reconsidering the Fiscal Role of Government: The International Perspective," American Economic Review, American Economic Association, vol. 87(2), pages 164-68, May. [Downloadable!] (restricted)
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    Other versions:
  13. Musgrave, R.A., 1985. "A brief history of fiscal doctrine," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 1, pages 1-59 Elsevier. [Downloadable!] (restricted)
  14. Kevin Kim & Ricardo Varsano & Michael Keen, 2006. "The "Flat Tax(es)": Principles and Evidence," IMF Working Papers 06/218, International Monetary Fund. [Downloadable!]
  15. Barr, Nicholas, 1992. "Economic Theory and the Welfare State: A Survey and Interpretation," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 741-803, June. [Downloadable!] (restricted)
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    Other versions:
  19. Keen, M. & Ligthart, J.E., 2004. "Information sharing and international taxation," Discussion Paper 117, Tilburg University, Center for Economic Research. [Downloadable!]
  20. Assaf Razin & Efraim Sadka & Phillip Swagel, 2002. "The Aging Population and the Size of the Welfare State," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 900-918, August. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Joanna Piotrowska & Werner Vanborren, 2008. "The corporate income tax rate-revenue paradox: Evidence in the EU," Taxation Papers 12, Directorate General Taxation and Customs Union, European Commission, revised Oct 2008. [Downloadable!]
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