Chapter 4: Taxing Mobile Jobs and People
CESifo Group Munich, Munich, 2020
EEAG Report on the European Economy 2020, 70-91
After reviewing corporate taxation, this chapter takes a closer look at the taxation of jobs and people in a mobile world. Increased mobility of jobs and workers is an important factor for the design of taxfinanced welfare systems, and the benefits and costs of globalization must be distributed fairly. The principles regulating the internal market and social security limit the EU’s scope for shaping the welfare state when people migrate within the European Union. On the other hand, there is greater leeway with regard to the migration of nonEU citizens. Policy measures affect both the revenue and the expenditure side. Developments in recent decades show that differences in welfare state regulations persist and that some of the most efficient economies include some countries with lean welfare states and some with extended welfare states. This is an indication that the scope of national policies with respect to the design of welfare systems is largely intact.
Included in
EEAG Report on the European Economy 2020: Fair Taxation in a Mobile World
CESifo, Munich, 2020