Taxation of public pensions in European Union countries
DOI:
https://doi.org/10.18559/ebr.2024.2.1140Keywords:
public pensions, taxes, social security contributions, EU countries, labor costsAbstract
The aging of society is one of the most important trends shaping the social, economic and political life of the 21st century. However, with the increasing number of people of retirement age, the problem of ensuring adequate conditions for a longer life arises. The state influences these conditions through the pension security system, including taxation of pensions. The paper attempts to answer the question whether taxation of remunerations and public pension benefits may have a significant impact on making decisions about choosing a country of work in the common market. For this purpose, Member States have been ranked in terms of two dimensions—the conditions of taxation of wages and the conditions of taxation of retirement benefits.
Downloads
References
Armstrong, A., Davis, P., & Ebell, M. (2015). An economic analysis of pension tax proposals. National Institute of Economic and Social Research. https://eprints.lse.ac.uk/86276/1/CFMDP2015-33-Paper.pdf
View in Google Scholar
Barrios, S., Mascarola, C., Figari, F., & Luca F. G. (2020). Size and distributional pattern of pension-related tax expenditures in European countries. International Tax and Public Finance, 27, 1287–1320.
View in Google Scholar
Cremer, H., & Pestieau, P. (2016). Taxing pensions. CESifo Working Paper Series, 5930. https://doi.org/10.2139/ssrn.2799616
View in Google Scholar
Cremer, H., Lozachmeur, J. M., & Pestieau, P. (2008). Social security and retirement decision: A positive and normative approach. Journal of Economic Surveys, 22, 213–233.
View in Google Scholar
Diamond, P. (2009). Taxes and pensions. Southern Economic Journal, 76, 2–15.
View in Google Scholar
Ebbinghaus, B. (2021). Inequalities and poverty risks in old age across Europe: The double-edged income effect of pension systems. Social Policy & Administration, 55, 440–455.
View in Google Scholar
Euromod. (2011–2022). Euromod country reports, models 2011–2022. Tax-benefit microsimulation model for the European Union. https://euromod-web.jrc.ec.europa.eu/resources/country-reports
View in Google Scholar
European Commission. (2001). The elimination of tax obstacles to the cross-border provision of occupational pensions, COM (2001) 214 final.
View in Google Scholar
European Commission. (2022). Taxation trends in the European Union, Taxation and Customs Union. Luxembourg: Publications Office of the European Union.
View in Google Scholar
European Commission. (n.d.). Taxes in Europe Database v4. https://ec.europa.eu/taxation_customs/tedb/#/home
View in Google Scholar
European Commission Data. (n.d.). Data on Taxation Trends. https://taxation-customs.ec.europa.eu/taxation/economic-analysis-taxation/data-taxation-trends_en
View in Google Scholar
Ferrarini, T., & Nelson, K. (2003). Taxation of social insurance and redistribution: A comparative analysis of ten welfare states. Journal of European Social Policy, 13(1), 21–33.
View in Google Scholar
Fratica-Dragomir A. M. (2023). The public pension system in Austria, Lichtenstein, Germany. Univers Strategic—Revistă de Studii Strategice Interdisciplinare și de Securitate, 4(56), 77–99.
View in Google Scholar
Genser, B., & Holtzmann, R. (2021). Frontloaded income taxation of old-age pensions: For efficiency and fairness in a world of international labor mobility. CESifo Economic Studies, 67(1), 61–77.
View in Google Scholar
Ivaškaitė-Tamošiūnė, V., & Thiemann, A. (2021). The budgetary and redistributive impact of pension taxation in the EU: A microsimulation analysis. European Commission, JRC Working Papers on Taxation and Structural Reforms, 08/2021. https://joint-research-centre.ec.europa.eu/document/download/1be7f6da-86e2-4994-a237-24fa7bbe14fe_en
View in Google Scholar
Iwacewicz-Orłowska, A., & Sokołowska, D. (2018). Ranking of EU countries in terms governance indicators in 2010 and 2015, using the Hellwig method. Ekonomia i Środowisko, 23(3), 50–62.
View in Google Scholar
Jankowiak, M. (2021). The EU Member States’ national healthcare systems compared using the single synthetic index. Economics and Business Review, 7(2), 37–49.
View in Google Scholar
Jun, B. W., Park, S. J., & Yoon, S. M. (2023). Effects of socio-economic factors on governmental tax expenditures for private pensions in selected OECD countries. The Singapore Economic Review, 68(5), 1599–1611.
View in Google Scholar
Keenay, G., & Whitehouse, E. (2003). The role of the personal tax system in old-age support: A survey of 15 countries. Fiscal Studies, 24(1), 1–21.
View in Google Scholar
Kluzek, M. (2022). Opodatkowanie emerytur w Polsce na tle rozwiązań w państwach Unii Europejskiej. Studia BAS, 4(72), 53–71.
View in Google Scholar
Leventi, C., & Picos, F. (2019). The tax structure of an economy in crisis: Greece 2009–2017. European Commission, JRC Working Papers on Taxation and Structural Reforms, 03/2019. https://joint-research-centre.ec.europa.eu/system/files/2020-01/jrc119508.pdf
View in Google Scholar
Lozachmeur, J. M. (2006). Optimal age-specific income taxation, Journal of Public Economic Theory, 8, 697–711.
View in Google Scholar
Manor, M., & Ratajczak, J. (2020). Shift to private pension system: The case of Poland and Israel. Economics and Business Review, 6(1), 82–102.
View in Google Scholar
OECD. (2011). Pensions at a glance 2011. https://doi.org/10.1787/pension_glance-2011-en
View in Google Scholar
OECD. (2021). Pensions at a glance 2021. https://doi.org/10.1787/ca401ebd-en
View in Google Scholar
OECD. (2023). Pensions at a glance 2023. https://doi.org/10.1787/678055dd-en
View in Google Scholar
Patterson, B. (2002). Tax coordination in the EU: The latest position. European Parliament Working Paper, Economic Affairs, 128. https://www.europarl.europa.eu/RegData/etudes/etudes/join/2002/312788/DG-4-ECON_ET(2002)312788_EN.pdf
View in Google Scholar
Shi, J., & Kolk, M. (2022). How does mortality contribute to lifetime pension inequality? Evidence from five decades of Swedish taxation data. Demography, 59(5), 1843–1871.
View in Google Scholar
Swift, Z. L. (2006). Managing the effects of tax expenditures on national budgets. World Bank Policy Research Papers, WPS3927. https://documents.worldbank.org/curated/en/602361468341100836/Managing-the-effects-of-tax-expenditures-on-national-budgets
View in Google Scholar
Vambol, V., Kowalczyk-Juśko, A., Vambol, S., Khan, N. A., Mazur, M., Goroneskul, M., & Kruzhilko, O. (2023). Multi criteria analysis of municipal solid waste management and resource recovery in Poland compared to other EU countries. Scientific Reports, 13, 22053.
View in Google Scholar
Verbist, G. (2007). The distribution effects of taxes on pensions and unemployment benefits in the EU-15. micro-simulation in action: Policy analysis in Europe using EUROMOD. Research in Labour Economics, 25, 73–99.
View in Google Scholar
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Maciej Cieślukowski
This work is licensed under a Creative Commons Attribution 4.0 International License.
