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The Revenues From Taxation Of Household Capital In Eu Member States. Evolutions And Effects At The Macroeconomic Level

Author

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  • MIHĂILĂ, Nicoleta

    (”Victor Slăvescu” Centre for Financial and Monetary Research, Romanian Academy, Bucharest.)

Abstract

In this paper, we consider the analysis of tax revenues from household capital at the level of EU states, in the period 2015-2023, respectively, those regarding property taxation, capital gains from the population/ individuals, as well as the effects of tax benefits granted by the authorities regarding households on distribution/inequality. In this regard, we carry out a case study, through regression, for a panel data set for EU countries, through which we want to demonstrate that the fiscal pressure on households impacts the population's gross investment and saving rate, tax revenues, as well as inequality; the main statistical data come from the Eurostat and OECD-Global Revenue Statistics - Comparative tax revenues databases, expressed as a share of GDP, for the period 2015 - 2023. The analysis shows that income tax systems reduce inequality, but excessively high tax burdens can harm saving and increase social polarisation. This highlights the importance of balancing tax efficiency with distributive fairness within the European Union.

Suggested Citation

  • MIHĂILĂ, Nicoleta, 2025. "The Revenues From Taxation Of Household Capital In Eu Member States. Evolutions And Effects At The Macroeconomic Level," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 29(4), pages 66-83, December.
    • Handle: RePEc:vls:finstu:v:29:y:2025:i:4:p:66-83
    DOI: https://doi.org/10.65672/fs.2025.4.4
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    References listed on IDEAS

    as
    1. Chirinko, Robert S. & Wilson, Daniel J., 2017. "Tax competition among U.S. states: Racing to the bottom or riding on a seesaw?," Journal of Public Economics, Elsevier, vol. 155(C), pages 147-163.
    2. Sule Alan & Søren Leth-Petersen, 2006. "Tax Incentives and Household Portfolios: A Panel Data Analysis," CAM Working Papers 2006-13, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    3. Evsey D. Domar & Richard A. Musgrave, 1944. "Proportional Income Taxation and Risk-Taking," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 58(3), pages 388-422.
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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