Sustainable revenue sources for the EU (WP8)
This research group, led by Margit Schratzenstaller (Austrian Institute of Economic Research WIFO, Vienna) and including Mendel University Brno and King’s College London, studies potential options for sustainability-oriented EU taxes for financing the EU budget, which may replace current EU own resources.
The current system of own resources of the EU is not sustainability-oriented in itself, it does not have any link to EU strategies and therefore it is one of the most important obstacles towards a future- and sustainability-oriented reform of EU expenditures.
As a first step, the pros and cons of own EU taxes were reviewed, and criteria for the evaluation of different options for own EU taxes were established. These consider both conventional tax policy criteria as well as evaluation criteria that capture the four dimensions of sustainability relevant to revenue/tax systems (economic, social, environmental, and institutional/cultural). Based on these fundamental considerations, the research identifies and evaluates options for own EU taxes, including environmental taxes (e.g. a carbon tax, a flight ticket tax, and a nuclear power tax), a CCCTB-based harmonised corporate income tax, a financial transaction tax, and a net wealth tax.
Quantitative assessment will be provided for the regional incidence of potential sustainability-oriented EU taxes. The investigations will also address options to mitigate potential “undesirable” regional incidence effects of these potential EU taxes.