The functioning of labour markets, and taxation and benefit systems are major aspects of economic policy. Globalisation, the increasing mobility of factors such as capital and goods, ageing populations and the financing of welfare systems, set new challenges for these policies.
The European Commission analyses tax and benefit systems from the point of view of how they contribute to economic growth and higher employment, while safeguarding fair social protection. Particular interest is devoted to the issues of making work pay, how to finance welfare states, and how to implement tax and benefits systems that are conducive to growth and employment.
The analyses and studies on tax and benefit systems cover several important areas, such as:
The tax and benefits indicators database presents results of an on-going joint European Commission/OECD project, aimed at monitoring the direct influence of tax and benefit instruments on household incomes and incentives to work.