Organised by: European Commission, DG Economic and Financial Affairs
Austrian Institute of Economic Research economist Margit Schratzenstaller's intervention focused on the bigger picture. "Future-proofing
fiscal policies is key to implementing current action plans to address increasing inequality, migration, and global warning",
she said. A reform of the rules is therefore imperative to close the 600 billion € investment gap that the EU currently faces.
A reformed EU budget should finance expenditure that yields more returns when engaged at the EU level, like R&D, and should
be financed with innovative taxes that cannot be properly implemented at national level, like a financial transaction tax
and an airline travel tax. Finally, "we desperately need a harmonisation of tax policy" she said, "to shift the burden away
from labour taxation towards profit taxation, through for instance a minimum corporate tax".
Die bestehenden europäischen Abgabensysteme sind aus Nachhaltigkeitssicht nicht mehr zeitgemäß. Sie basieren stark auf der
Besteuerung der Arbeit, wobei nach wie vor in vielen Abgabensystemen von einem (in der Regel männlichen) Hauptverdiener auf
der Basis eines Normalarbeitsverhältnisses und einer weiblichen Zuverdienerin ausgegangen wird. Lenkungssteuern zur Bewältigung
der großen Herausforderungen in Klima- und Umweltpolitik werden zu wenig genutzt, und der Beitrag der Abgabensysteme zu verteilungspolitischen
Zielsetzungen hat langfristig abgenommen. Um die europäischen Abgabensysteme zukunftsfähig zu machen, ist ein fundamentaler
Umbau mit einer Umschichtung der Abgabenlast weg von Arbeitseinkommen hin zu Emissionen bzw. Ressourcen- und Energieverbrauch
einerseits sowie zu Vermögen und höheren Einkommen andererseits erforderlich. Wie in kaum einem anderen Politikbereich haben
Strukturreformen im Abgabensystem das Potential, die verschiedenen Dimensionen der Nachhaltigkeit gleichzeitig zu adressieren.
The FairTax project addresses the impact of EU national tax systems on widening socio-economic and gender inequalities as
well as fiscal sustainability and tax fairness issues. This research will help improve economic stability while promoting
economic, social and environmental sustainability.
The design of tax systems has a considerable impact on the personal distribution of income and wealth at the household and
the individual level. Due to gender-differentiated socio-economic conditions, taxation may affect men and women differently.
One of the most important areas of taxation is the personal income tax, which may have a gender-differentiated effect on work
incentives and influence the distribution of paid and unpaid work between men and women. The paper presents an overview of
the microsimulation results for selected provisions of the personal income tax system done with EUROMOD (a tax-benefit microsimulation
model for the European Union) for six selected Member States: Germany, Austria, Spain, Czech Republic, United Kingdom and
In the current negotiations about the European Union's next medium-term Multiannual Financial Framework (MFF) for the period
2021 to 2027, the system of own resources financing EU expenditures plays a relatively important role. Currently, the EU budget
primarily rests on contributions from Member States (VAT- and GNI-based own resources), whereas "true" own resources have
continuously lost importance. In 2017, VAT-based own resources accounted for 12.2 percent of overall EU revenues and GNI-based
own resources for 56.6 percent, while traditional own resources contributed the rather small share of 14.7 percent.
The existing EU system of own resources financing EU expenditures does not make any positive contribution to the various EU
strategies and policies implemented to cope with the manifold long-term challenges confronting the EU. It is against this
background that the European Commission as well as the High Level Group on Own Resources, but also the European Parliament
have (repeatedly) called for the introduction of tax-based own resources to partially substitute national contributions to
the EU budget. Our specific contribution to this debate consists in the exploration of sustainability-oriented options for
tax-based own resources which are able to support sustainable growth and development in the EU. Based on a concept of sustainability-oriented
taxation in the context of own resources for the EU, we develop sustainability-oriented evaluation criteria to assess the
suitability of specific candidates for tax-based own resources. We then present various options for tax-based own resources
and estimations of their revenue potential. Moreover, a summary evaluation of these options based on our evaluation criteria
is undertaken. Finally, we address implementation aspects. In particular, we briefly present and discuss potential models
to implement tax-based own resources in the EU within the existing legal framework.
European Union's Horizon 2020 research and innovation program 2014-2018
The design of tax systems has a considerable impact on the distribution of income and wealth at the household and the individual
level, and due to gender-differentiated socio-economic conditions also in a gender perspective. One of the most important
areas of taxation is the taxation of personal incomes. 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 of the distributional effects and work incentives of the personal income tax. The study presents
an overview of the microsimulation results for selected provisions of the personal income tax system on income distribution
and work incentives. The microsimulations are based on EUROMOD for six selected EU countries: Germany, Austria, Spain, Czech
Republic, UK, and Sweden, countries of different "families" of welfare and taxation traditions.