The carbon tax is often considered the ideal climate policy. However, existing carbon taxes do not match the ideal theoretical policy. More than two dozen carbon taxes exist in the world today, and they vary widely in terms of design.
61 min read
Currently, about half of all European OECD countries have either announced, proposed, or implemented a digital services tax. Because these taxes mainly impact US companies and are thus perceived as discriminatory, the US responded with retaliatory tariff threats.
5 min read
To make the taxation of labor more efficient, policymakers should understand their country’s tax wedge and how their tax burden funds government services.
5 min read
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
The past decade’s record suggests that countries have reliable legislative methods to improve their tax systems through ordinary tax reforms.
22 min read
Closing the EU’s value-added tax (VAT) actionable policy gap could yield €773 billion in government revenue—four times the EU’s 2026 budget.
8 min read
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
Many countries’ personal income tax systems tax various sources of individual income—including investment income such as dividends and capital gains.
4 min read
Capital gains taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment.
4 min read
The side-by-side agreement is an important step in trans-Atlantic economic relations, however, there is more work to be done—on both sides of the Atlantic. If there’s a downside to the side-by-side agreement, it’s the risk of locking in mediocre tax policy choices for the long run.
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
Fuel taxes continue to be a central policy consideration for European countries amid geopolitical conflicts, increased emphasis on environmental policy, and economic conditions experienced by average consumers.
6 min read
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
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.
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
Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) levy the highest top personal income tax rates in Europe.
4 min read
A focus on sustained growth, meaningful metrics, and institutional capabilities that keep simplification a focus in future regulatory efforts should underpin the decluttering agenda.
8 min read
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
Some European countries have raised their statutory corporate rates over the past year, including Estonia, Lithuania, and Slovakia.
4 min read
As European countries have undertaken a series of tax reforms designed for budgetary stability, policymakers should focus on consumption taxes by making them more neutral and efficient.
15 min read