Future EU Funding: A case of lump-sum tax

Marian Dobranschi; Danuse Nerudova; Veronika Solilova

doi:10.5755/j01.ee.28.4.16498

Authors

Marian Dobranschi Mendel University from Brno, Czech Republic, Faculty of Business and Economics, Department of Accounting and Taxation
Danuse Nerudova Mendel University from Brno, Czech Republic, Faculty of Business and Economics, Department of Accounting and Taxation
Veronika Solilova Mendel University from Brno, Czech Republic, Faculty of Business and Economics, Department of Accounting and Taxation

DOI:

https://doi.org/10.5755/j01.ee.28.4.16498

Keywords:

EU budget, lump-sum taxation, future EU taxes, tax revenue potential, sustainability gaps.

Abstract

In this paper our aim was to analyze the potential of a lump-sum tax as a source of future EU funding. We consider lump-sum tax as an EU per capita charge applicable to all citizens of 28 EU member states. In order to assess the lump-sum tax potential we simulate five different lump-sum tax rates and compare the obtained yield to current EU own resources. The results of the research shows that a charge per capita in the EU does not have the capacity to fully replace GNI or VAT-based EU own resources. Therefore we consider EU per capita charge as a form of complementary source to fund EU own budget, with no real potential to fully replace the current EU own resources.

DOI: http://dx.doi.org/10.5755/j01.ee.28.4.16498