News Archive

Excess profit taxes

Has the Time Come for Excess Profit Taxes?

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Policy Brief
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Excess profit taxes (EPTs) emerge as an option to contribute to the extra needed revenues, avoiding a general increase in corporate tax rates, while having the prospect to serve as a gateway to converge toward a permanent efficient rent tax instead of the corporate income tax. General unilateral (temporary or permanent) EPTs would face the same international pressures from profit shifting and tax competition as the existing corporate income tax, calling for international coordination.

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Schattenwirtschaft

How to Incentivize Tax Compliance when Households Demand Services?

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EconPol Forum
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Tax relief for home maintenance services is not an effective means of tackling tax evasion. In Germany, it would cost the government a great deal of money while only marginally improving tax compliance. This is the finding of a survey of just under 2,000 private households in Germany. In total, 55 percent of respondents say that they would request an official invoice even if this didn’t entitle them to tax relief.

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