The evolution of the tax burden for EU companies
The evolution of the tax burden for EU companies
Author(s): Elisabeth Bustos Contell, Salvador Climent-Serrano, Gregorio Labatut-SererSubject(s): Geography, Regional studies, Evaluation research, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets, Fiscal Politics / Budgeting, Accounting - Business Administration
Published by: Akademia Ekonomiczno-Humanistyczna w Warszawie
Keywords: tax harmonization; effective tax rate; tax burden; European Union;
Summary/Abstract: Since its creation, the EU has targeted tax harmonization to protect the single market and avoid capital outflow to regions that have lower tax rates. However, despite repeated attempts, complete convergence has not yet been achieved. Using the effective tax rate, the statutory tax rate, and the absolute difference between these two rates, this study explored the trends of the tax burden in 15 EU member states. The study period of 2006 to 2014 enabled analysis of the tax burden before and after the financial crisis. Analysis was conducted using an econometric model. The results suggest that during periods of economic stability, the tax burden tends to converge. In contrast, during periods of crisis, countries apply their own tax policies to protect themselves from the adverse effects of the crisis.
Journal: Contemporary Economics
- Issue Year: 12/2018
- Issue No: 4
- Page Range: 447-458
- Page Count: 12
- Language: English