Most traditional tax policies have been based on classical economic models of tax payers as decision makers. As in many fields where humans make decision, however, more integrated behavioural economic models, that is, models that take into account both psychological and purely economic factors c...
The global economic and financial crisis has created important needs for fiscal consolidation. This document analyses potential instruments to raise additional tax revenues from the financial sector. The first section reviews the current policy objectives related to the taxation of the financial...
The question of additional taxes on banking institutions has recently been debated. At the same time, financial regulation in the banking sector is undergoing many changes aimed at strengthening financial stability. This paper uses SYMBOL, a micro-simulation model of the banking system, to estim...
Any assessment of the effects of a tax reform has to be based on indicators of effective taxation. Various indicators have been developed to measure the effective taxation of income from capital. This paper briefly reviews their properties, before turning to an evaluation of the effects of the c...
The report 'Tax reforms in EU Member States' serves four main purposes. Firstly, it reviews the most important tax reforms recently implemented in EU Member States. Secondly, it discusses a number of challenges relating to tax policy that may affect macroeconomic performance, in terms of growth,...
Despite sharp reductions in corporate income tax (CIT) rates worldwide, CIT revenues have not fallen dramatically in the last two decades. This paper investigates the recent developments in CIT in the European Union, by taking a closer look at the potential driving forces behind this puzzle. Usi...
The main objectives of the study can be summarised as follows: Analyse current interest deduction limitation rules in the EU28 Member States and assess the effect of interest deduction limitation rules on effective tax rates; Provide insights on the effects of the fundamental tax reform options ...
The tax deductibility of interest payments in most corporate income tax systems coupled with no such measure for equity financing creates economic distortions and exacerbates leverage. This paper discusses the consequences of this debt bias and the possible remedies....
The paper studies the link between corporate income tax reforms and domestic bank entities' financing decisions. We use a dataset of corporate income tax (CIT) reforms and estimate the effect of tax rate changes on leverage, dividend policies and earnings management of banks. The results suggest...