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Business Consumption Taxes

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Germany Tax Burden on Labor and Consumption, Vale-Added Tax Base

Shifting Germany’s Tax Burden from Labor to Consumption Requires a Broad VAT Base

Shifting Germany’s tax mix away from labor to consumption remains a sound policy route to strengthen the country’s labor supply, but further eroding the VAT base with preferential rates for selected goods and services would counteract this goal by depleting the extra revenue for labor tax cuts while providing less-targeted relief for low-income households.

6 min read
Windfall Profits Taxes on Oil and Gas in Europe

Windfall Profits Taxes on Oil and Gas Should Be Left in the Past

Windfall taxes, particularly those imposed on the oil and gas industry, often appear as a quick fix for governments seeking to raise revenue during periods of high commodity prices. However, while these taxes may offer short-term revenues, they can also trigger negative consequences that undermine their intended purpose.

21 min read
Cigarette Taxes in the European Union, 2026

Cigarette Taxes in Europe, 2026

Cigarette smokers in the European Union pay far more in excise taxes than they do for the cigarettes themselves. Our latest map illustrates the wide variance in cigarette excise taxes across EU Member States.

6 min read
Road Taxes and Funding by State, 2026

Road Taxes and Funding by State, 2026

The amount of revenue states raise through roadway-related revenues varies significantly across the US. Only two states raise enough revenue to fully cover their highway spending.

5 min read
Biden trade policy including Biden tariffs and Trump tariffs, trade war, free trade, and trade agreements including Section 301 lists

FAQs About Border Adjustment

What is a border adjustment? Is it a new idea? How would it work in practice?

11 min read
2025 European Tax Policy Scorecard

2025 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.

55 min read
Poland digital services tax, DST

Poland Considering a Second Harmful Digital Tax

Poland is proposing to broaden and raise its digital services tax (DST) from 1.5 percent to 3 percent. Because DSTs tax revenues, not profits, a company with a 10 percent profit margin would face a 30 percent effective tax rate on digital services provided in Poland.

6 min read
International Tax Policy, European Geoeconomics

Lessons From European Geoeconomics & The Future Of International Tax Policy

European policymakers would be wise to refocus tax and trade policies on what is good for Europe rather than trying to change policies in countries beyond European borders. Meanwhile, the Trump administration would be wise to recognize that the transatlantic relationship is a geoeconomic asset that can be mutually beneficial.

Global Tax policy Ideas, 2026

Three Global Tax Policy Ideas in Need of a Reality Check

Formulary apportionment, global tax harmonization, and broad tax increases on services all face design, implementation, and economic barriers. When designing tax systems, policymakers should focus on doing the basic things well and avoid harmful policies that could stunt growth.

7 min read
AI Tax Policy

When Taxing AI, Don’t Reinvent the Wheel

AI technology has a wide range of potential economic outcomes. It would be a mistake to tailor tax policy to the extreme end of that range. Still, policymakers shouldn’t do nothing: they should instead make tax reforms that are sound regardless of which AI scenario emerges.

7 min read
EU VAT Compliance Gap, Europe Tax Revenue Government

The EU’s Questionable VAT Policy

The value-added tax (VAT) compliance gap—the additional VAT revenue that could be collected if all taxpayers, consumers, and businesses fully complied with VAT rules—continues to increase, reaching €128 billion in 2023.

8 min read
VAT Rates in Europe, 2026

VAT Rates in Europe, 2026

More than 175 countries worldwide—including all major European countries—levy a value-added tax (VAT) on goods and services. EU Member States’ VAT rates vary across countries, though they’re somewhat harmonized by the EU.

5 min read
Tax systems of Scandinavian countries, Denmark, Sweden, Norway

How Scandinavian Countries Pay for Their Government Spending

Scandinavian countries are well known for their broad social safety nets and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. High levels of government spending naturally require high levels of taxation. So, how do these countries raise their tax revenues?

7 min read