European Union (EU)

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.

BEFIT: One-Stop-Shop or One-More-Stop?

On 12 September, the European Commission released a proposal called “Business in Europe: Framework for Income Taxation” (BEFIT) and two associated proposals on transfer pricing and a Head of Office tax system.

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.

The Tax Policy Implications of the Spanish Elections at the Regional, National, and European Levels

The Spanish election results are moving the country away from pro-growth tax reforms while launching the government’s tax agenda, and the agenda of the Spanish presidency of the Council of the European Union, into uncertainty.

Carbon Taxes in Europe, 2023

In recent years, several countries have taken measures to reduce carbon emissions, including instituting environmental regulations, emissions trading systems, and carbon taxes. In 1990, Finland was the world’s first country to introduce a carbon tax.

Net Operating Loss Carryforward and Carryback Provisions in Europe, 2023

Carryover tax provisions help businesses “smooth” their risk and income, making the tax code more neutral across investments and over time.

Patent Box Regimes in Europe, 2023

The aim of patent boxes is generally to encourage and attract local research and development (R&D) and to incentivize businesses to locate IP in the country. However, patent boxes can introduce another level of complexity to a tax system, and some recent research questions whether patent boxes are actually effective in driving innovation.

Weeding the Garden of International Tax

Simplifying international tax rules will not solve all the challenges that stand in the way of healthy cross-border investment, but eliminating unnecessary provisions would be a positive pivot relative to the trajectory of recent years. It’s high time that policymakers stopped pursuing ever more complex rules and started the hard work of simplification.

Benefits of Principled Tax Policy: EU VAT Reform Results

The EU’s recent VAT reform is an example of a win for governments, consumers, and companies. Charting a new path toward a more successful tax system.

A Mis-STEP for the European Union: The New Subsidy Race to the Bottom

Enhancing the European Union’s competitiveness is necessary, but the European Commission’s latest attempt is the wrong approach.

Diesel and Gas Taxes in Europe, 2023

As the EU pursues massive changes in public policy as part of its green transition, expect fuel taxes to be central to any policy discussions.

Examining the EU Corporate Own Resources Proposal: Implications and Challenges

The European Commission proposed a new source of revenue as part of its second basket of own resources: a “temporary statistical own resource based on company profits.” This is an attempt to bolster the EU’s budget as it repays its debt.

The Wealth Tax Discussion Is Back

Given that wealth taxes collect little revenue and have the potential to disincentivize entrepreneurship and investment, perhaps European countries should repeal them rather than implement one across the continent.

Emissions Trading System (ETS)

Windfall Profit Taxes in Europe, 2023

It’s unlikely these implemented and proposed windfall taxes will achieve their goals of raising additional revenues without distorting the market. Instead, they would penalize domestic production and punitively target certain industries without a sound tax base.

Integrated Tax Rates on Corporate Income in Europe, 2023

In most European OECD countries, corporate income is taxed twice, once at the entity level and once at the shareholder level.

Tax Burden on Labor in Europe, 2023

To make the taxation of labor more efficient, policymakers should understand the inputs into the tax wedge, and taxpayers should understand how their tax burden funds government services.

Wealth Taxes in Europe, 2023

Instead of reforming and hiking the wealth tax, perhaps policymakers should consider whether the tax is serving its intended objectives, and, if not, consider repealing the tax altogether.

The Role of Pro-Growth Tax Policy and Private Investment in the European Union’s Green Transition

Permanent full expensing is an efficient and neutral tax policy that will allow markets to allocate private investment effectively while moving the economy towards the climate goals of the EU.