Future EU Funding: A case of lump-sum tax
Keywords:EU budget, lump-sum taxation, future EU taxes, tax revenue potential, sustainability gaps.
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.