Business Consumption Taxes

Complexity of VATs in Europe

California Considers Business Head Tax Plan that Seattle Repealed

With California’s unemployment rate approaching 25 percent, it is somewhat surprising to find policymakers contemplating a literal tax on jobs.

Lessons from Alberto Alesina for U.S. Lawmakers

Alesina’s work suggests that raising taxes to reduce the federal deficit and national debt would be an economic mistake. The less economically damaging path is to cut spending, what some have called austerity policies.

A Comparison of the Tax Burden on Labor in the OECD, 2020

A higher tax burden on labor often leads to lower employment rates and wages. That’s important for policymakers to remember as they look for ways to help their economies recover from coronavirus-induced shutdowns. If their goal is to encourage employment, policies that lower the tax burden on labor could prove a powerful tool.

New OECD Study: Consumption Tax Revenues during Economic Downturns

Compared to other tax revenue sources, consumption tax revenue as a share of GDP tends to be relatively stable over time, even during economic downturns.

VAT Bases in Europe

The extent to which businesses and consumers will benefit from coronavirus relief measures like temporary VAT changes will depend on the VAT base.

Denmark Unplugs the Economy

Denmark, a high-tax country with 5.5 million citizens, has implemented policies designed to avoid layoffs and bankruptcies and basically unplug the economy during the pandemic.

Norway Opens the Fiscal Toolbox

Norway passed a large coronavirus tax relief package to address layoffs and bankruptcies, which includes a reduced VAT rate, the introduction of a loss carryback provision, and targeted postponements for wealth tax payments, among other provisions.

Tax Policy and Economic Downturns

The Great Recession provides some insight into how tax revenues declined during a deep recession. Across OECD countries, revenues fell by 11 percent from 2008 to 2009 with corporate income taxes seeing the steepest decline at 28 percent. Revenues from individual income taxes fell by 16 percent.

Reliance on Consumption Taxes in Europe

Key Tax Provisions from the UK’s 2020 Budget

Sources of U.S. Tax Revenue by Tax Type, 2020 Update

FAQ on Digital Services Taxes and the OECD’s BEPS Project

What is a digital services tax (DST)? What countries have announced, proposed, or implemented a DST? What are some of the criticisms of a DST? What are alternatives to a DST? What is the OECD BEPS project and what is its main objective? What is the main objective of OECD Pillar 1? What is the main objective of OECD Pillar 2?

VAT Rates in Europe, 2020

Germany’s Tax System: Developments and Competitiveness

Another Digital Services Tax? Canada Adds Its Proposal to the Mix

What’s on the Tax Policy Agenda at the EU

Welcome to the Index, Lithuania!

Comparing Europe’s Tax Systems: Consumption Taxes

Tax Competitiveness is on the Agenda in Greece