Analysing investment tax expenditures.

The aim of this project is to further broaden the policy scope of EUROMOD in order to allow for the analysis of investment-related tax expenditures for 11 European countries. The OECD (2010) defines tax expenditures as provisions in t he tax system that reducetax liabilities for specific groups of tax payers or specific activities and that reduce government revenue. Tax expenditures can take different farms, e.g. allowances, exemptions, deductions, rate reliefs and credits . These tax expenditures have increasedover the past decades and raise concerns in terms of their potential ill effects on budget tax policy (OECD, 2010). Tax expenditures are used for several policy domains; the focus here is on those related to investment activities.

Keywords:TAX AND BENEFIT SYSTEM

Disciplines:Public economics, Distribution