Tax systems play a significant role for economic, social and environmental developments. The impact of income taxes on job creation, the reflection of corporate taxes in investment decisions, and the role of energy taxes in resource use are cases in point for this. Tax revenues and their specific balance between taxes on personal income and corporate profits, wealth and inheritance, value added, energy and other tax bases, don’t only fund government activities, but also influence prices and thus economic activities.
Against this background, initiatives in several countries have put together recommendations how tax policies that have evolved over decades can be reformed to increase alignment with economic, social and environmental objectives. The Mirrlees Review in the UK as well as the Henry Review in Australia are examples in this context. CEP aims to build up on these insights to advance opportunities for effective and efficient tax reforms that support competitiveness, job creation, social cohesion, and the sustainable use of resources.
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