This report is a product of Ex’Tax.
“This study by The Ex’tax Project in cooperation with Deloitte, EY, KPMG Meijburg and PwC examines the impact of a tax shift from labour to consumption and natural resource use. Cambridge Econometrics has modelled the impacts of a tax shift scenario in the period 2016- 2020 in 27 Member States of the European Union using the E3ME macro-econometric model.
The GDP and employment results are positive in each of the 27 countries. In 2020, GDP levels are on average 2.0% higher and employment levels are 2.9% higher than business as usual. This means that 6.6 million more people are in employment.
Based on the modelling results, Trucost assessed the integrated impact of the scenario on financial capital, natural capital and social capital. The Ex’tax Integrated Value Added Statement includes the financial capital value (economic growth), as well as the external benefits to society in terms of social capital (the health impacts of employment versus unemployment) and natural capital (health impacts of lower carbon emissions, reduced pollution levels because of lower energy resource use and water savings).
These findings suggest that a tax shift from labour to natural resource use and consumption is a viable strategy to align tax systems with the Europe 2020 Strategy and the Sustainable Development Goals…”
The report ‘New era. New Plan. Europe’ shows us the possibilities and opportunities a fundamental shift in taxes has to offer. It is a valuable study for policy- and decision makers in businesses and governments who are looking for solutions to address the challenges of our time: climate change, pollution, inequality, unemployment and resource scarcity.”
– Feike Sijbesma, CEO Royal DSM
“If anything, the study ‘New era. New plan. Europe’ shows that a shift in taxes not only would benefit economies, it would also boost EU’s Action plan for a circular economy and several Sustainable Development Goals”
– H.R.H. Prince Carlos de Bourbon de Parme
“Shifting taxes from labour to pollution, resource use and consumption can help EU countries boost economic growth, create many new jobs and achieve commitments to minimise climate change under the Paris Agreement, as well as protect constrained environmental resources.”
– Dr Richard Mattison,
“This study assesses the effects of a highly ambitious shift in taxes from labour to the consumption of resources across Europe. The results from the modelling exercise show that European countries could cut resource use while simultaneously boosting employment levels, at no additional public expense.”
– Hector Pollit,
Download the report here.