EU must build a fairer and more progressive tax system

Part of rising inequality stems from harmful economic practices like tax avoidance.

The increasing global gap between rich and poor and between women and men is generating and sustaining poverty. In Europe and beyond, extreme inequality is fomenting divided societies and stoking populist sentiment. But inequality is not inevitable – it is a political choice and can be overcome by sensible and coherent policy making, not least on EU level.

Part of this rising inequality stems from harmful economic practices like tax avoidance. Tax avoidance by multinational companies means developed and developing countries lose huge amounts of income every year that governments could spend on public services proven to lessen inequality, such as healthcare and education.

The EU should work with its global partners to create a fair tax system that is essential to eradicating poverty and inequality by 2030. This includes putting an end to tax dodging and tax havens both within and outside the EU, stopping the race to the bottom in corporate taxation, improving tax transparency, and promoting progressive taxation and universal, free and accountable public services in Europe and beyond.

Read our detailed briefing on the changes that the EU should introduce in its own, and the global, tax system.