EEAG Report 2020: Executive Summary

This year’s EEAG report focuses on the taxation- mobility nexus in Europe and the OECD. As the main source of public revenue, taxes affect, among other things, individual labor income, corporate revenue flows, intergenerational wealth transfers, capital markets, and trade and consumption. In particular, the report raises the question of what fair taxation looks like in an increasingly connected and mobile world. The first chapter provides an overview of past and future macroeconomic conditions in the world economy and explains how recent political developments have influenced economic performance. Chapter 2 reviews the digital transformation and outlines how Europe could respond to changes from technological advances. Chapter 3 pays particular attention to corporate taxation in a mobile and digital world. The chapter discusses the development of corporate tax systems in recent decades and the need for reform. At the individual level, Chapter 4 highlights recent developments in income inequality. The chapter also discusses taxation of labor income and the efficient and sustainable design of the social safety net as workers become more mobile. Despite in creasing globalization and digitalization, some factors cannot, by their very nature, cross borders. Chapter 5 looks at the taxation of such inherently immobile factors, including consumption, land, wealth, and inheritance.