EU Video on Smart Taxation

27 Oct 2015

The European Commission has published a video: 'Smart Taxation. A Winning Strategy'. The video states that taxes should shift from labour to other things, like pollution:

“Taxes serve mainly to fund public goods and services. How we design them to raise money is very important. Well-designed taxes support economic growth and investment, encourage job creation, increase economic competitiveness and improve social fairness. The European Commission analyzes national tax policies and provides advise to the Members States, helping to spread successful policies and practices.”

One of the biggest tax policy challenges in Europe is that governments tend to rely too much on labour taxes. But overdependence on labour taxes can be a disadvantage when they make it too expensive to employ people. Passing some of the taxes to other things, such as pollution, could help to accelerate employment and economic growth. Smart taxation is a winning strategy.”

Although the analogy of an Olympic stadium in the video is not fully clear, the message of the Commission, supporting the basic principles of Ex'tax, does comes across very clearly. 


European Commission (2015) Video: Smart Taxation: a Winning Strategy.