The Ex'tax Project
Study
Work Should Pay Off: the Taxshift in Action
Work Should Pay Off: the Taxshift in Action
22 policy options for the Netherlands, to effectively lower the tax burden on labour for employees and employers, while optimizing social impact
In Dutch: Werk moet lonen: de taxshift in actie
Introducing the (2022) Taxshift report that illuminates how shifting the tax burden from labour to pollution and resource use supports an inclusive circular economy:
*Results available for each of the 27 Member States*
High taxes on labour encourage businesses to minimise their number of employees. Resources, however, tend to be untaxed; they are used unrestrained. This system causes unemployment, overconsumption and pollution.
Ex’tax is the proposal to put taxes on natural resources and pollution, and using the revenues to lower the tax burden on labour and increase (social) spending. Such tax reform creates incentives to save resources and the natural world. It also enables job creation and supports those who need it most.
Ex’tax enables an inclusive circular economy.
OUR MISSION
why
EX’TAX believes that
- Businesses and societies can flourish by saving natural resources and tapping into the abundance of human potential instead.
- Tax systems play a key role in achieving the Global Goals and inclusive circular economies.
We believe that tax can be a force for good.
how
Tax systems should be aligned with the Global Goals and the inclusive circular economy by
- Putting a price on natural resource use and pollution, which would provide incentives to save resources and the natural world, and
- Using the revenues to lower the tax burden on labour and increase (social) spending. This would enable job creation and support those who need it most.
what
EX’TAX contributes to these goals by
- Analysing and showcasing the impact of tax reform on economies, businesses, the environment, jobs and wellbeing.
- Advising and inspiring policy makers on implementation routes.
Let’s share the great story of what tax can do!
global support
"My message is clear. Solutions exist. First, let’s shift taxes from salaries to carbon. We should tax pollution, not people. Second, stop subsidizing fossil fuels. Taxpayers’ money should not be used to boost hurricanes, spread drought and heat waves, and melt glaciers.”Secretary-General's remarks to Climate Summit Preparatory Meeting Abu Dhabi (June 30, 2019)
"Business leaders must...work openly with regulators, business and civil society to shape fiscal and regulatory policies that create a level playing field more in line with the Global Goals. This could involve fiscal systems becoming more progressive through putting less tax on labour income and more on pollution and under-priced resources."
Better Business, Better World: Executive Summary (2017)
"Shifting taxes from labour to finite resources could level the playing field for more labour-intensive, but less resource-intensive practices. This creates jobs, while saving resources."Growth Within: A Circular Economy Vision for a Competitive Europe (2015)
"Increased or more effective use of environmentally related taxes can drive growth-oriented reform by shifting the tax burden away from more distortive taxes, e.g. on corporate or personal income, and contribute to fiscal consolidation."Towards Green Growth? Tracking Progress (2015)
"offsetting increased carbon prices with lower labour taxes can potentially decrease labour costs (without affecting salaries), enhance employment and reduce the attractiveness of informal economic activity"Summary for Policymakers of IPCC Special Report on Global Warming of 1.5ºC approved by governments (2018)
"Labour tax cuts can be a tool promoting higher levels of employment. Shifting taxation to other tax bases is one possible option. Tax bases less detrimental to growth include consumption taxes, housing taxes & environmental taxes."European Semester Thematic Factsheet Taxation (2017)
The Ex’tax Project is powered by
