Value-Added Tax (VAT)

Excise Duties on Electricity in Europe, 2024

EU Member States should seek to minimize the rate and broaden the base of electricity duties, consolidating their rates to the required minimum rate.

Portugal’s Personal Income Tax System: High Top Rate, Threshold, and Tax Credits

Portugal’s personal income tax system levies high tax rates on an unusually narrow set of high earners, striking a poor balance between earnings incentives and revenue contributions.

Considering Tax Reform Options for 2025 (and Beyond)

Given that U.S. debt is roughly the size of our annual economic output, policymakers will face many tough fiscal choices in the coming years. The good news is there are policies that both support a larger economy and avoid adding to the debt.

Sources of US Tax Revenue by Tax Type, 2024 Update

Different taxes have different economic effects, so policymakers should always consider how tax revenue is raised and not just how much is raised.

Sources of Government Revenue in the OECD, 2024 Update

Designing tax policy in a way that sustainably finances government activities while minimizing distortions is important for supporting a productive economy.

Property and Transfer Tax: If It Moves, Stop Taxing It.

Portugal’s turnover tax on real property transfers places a serious drag on economic growth by making it harder for people to relocate for better jobs and living conditions while constraining investment into the development of housing and buildings.

Mind the Gap, Please! How Portugal Could Reform Its VAT System

Portugal’s value-added tax (VAT) policy is a treasure trove of tax oddities. Thankfully, VAT base broadening is an ideal instrument to give the Portuguese government the fiscal room to implement pro-growth tax reforms

VAT Rates in Europe, 2024

A few European countries have made changes to their VAT rates, including the Czech Republic, Estonia, Switzerland, and Turkey.

Kentucky Sales Tax Modernization: Keeping the Sales Tax on Sales, Not Production

As policymakers continue efforts to improve Kentucky’s tax structure and competitiveness, they should keep in mind that not all offsets are created equal.

D.C. Tax Revision Commission Recommends Major Tax Changes

While some recommendations follow the principles of sound tax policy and may improve the District’s tax climate, some proposals make the tax code more complex and less neutral, potentially disincentivizing investment and business activity.

Tax Files under New Council of EU Presidency: Belgium

In such a determinant semester for Europe, principled tax policy can be an important tool for a more competitive European Union.

Is EU VAT Compliance Actually Improving?

While the European Commission focuses on improving VAT compliance, policy is a major contributor to VAT revenue losses. The VAT actionable policy gap is 15.65 percent, more than triple the compliance gap.

Movers and Shakers in the International Tax Competitiveness Index

The 2023 version of the International Tax Competitiveness Index is the 10th edition of the report. Let’s take a look back and see how country ranks have changed over time.

2023 European Tax Policy Scorecard

The variety of approaches to taxation among European countries creates a need to evaluate these systems relative to each other. For that purpose, we have developed the European Tax Policy Scorecard—a relative comparison of European countries’ tax systems.

International Tax Competitiveness Index 2023

While there are many factors that affect a country’s economic performance, taxes play an important role. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities.

Most Successful Fiscal Consolidations Do Not Rely Solely on Tax Hikes

If tax increases are included in a package, international experience points toward raising consumption taxes, rationalizing tax expenditures, and broadening the tax base—not hiking income taxes.

How Taxing Consumption Would Improve Long-Term Opportunity and Well-Being for Families and Children

Income taxes impose steeper economic costs, and often steeper administrative and compliance costs, than consumption taxes. Moving to a consumption tax would end the tax bias against saving and investment and provide an opportunity to greatly simplify anti-poverty programs embedded in the tax code.

Cigarette Taxes in Europe, 2023

Tax Trends in European Countries

In recent years, European countries have undertaken a series of tax reforms designed to maintain tax revenue levels while protecting households and businesses from high inflation.

Beer Taxes in Europe, 2023

As Oktoberfest celebrations kick off around the world, let’s look at how much tax European Union (EU) countries add to the world’s favorite alcoholic beverage.