Sustainability-oriented Future EU Funding: A Financial Transaction Tax
2016 (English)Report (Refereed)
Although the responsibility for realizing the Europe 2020 strategy is shared between the EU and its 28 member states, the main criticism of the current EU budget relates to the lack of a link between the budget and Europe 2020 strategy. Therefore a new budget design as well as alternative revenue sources is currently explored within a mid-term review. One of the possible candidates is a Financial Transaction Tax (FTT). To research FTT revenue potential, a model based on a remittance system was designed. We analyse full or partial replacement of VAT- and GNI-based own resources by the transfer of the tax revenues from a FTT raised on a national level to the EU budget. The research reveals that FTT-based own resources would be able to fully replace GNI-based own resources and VAT-based own resources only for some EU member states. However, the results also show that, from the EU11 (28) perspective, the tax is sufficient to fully replace VAT- or GNI-contributions if levied on the EU11 (28) level (not on the national level) as a direct payment to the EU budget without tracking the source Member State.
Place, publisher, year, edition, pages
Umeå: Umeå Universitet , 2016. , 57 p.
FairTax: Working Paper Series, 05
Sustainability, funding, FTT, European Union, budget
Law and Society
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-127658OAI: oai:DiVA.org:umu-127658DiVA: diva2:1047123
FunderEU, Horizon 2020, 649439