What question did this study set out to answer?

The central aim is to analyze the impact of household capital taxation on macroeconomic variables and inequality across EU member states.

February 14, 2026Open Access

The Revenues From Taxation of Household Capital in Eu Member States. Evolutions and Effects at the Macroeconomic Level

Key Points

The central aim is to analyze the impact of household capital taxation on macroeconomic variables and inequality across EU member states.
Analyzed tax revenues from household capital in EU states between 2015-2023.
Conducted a regression analysis using a panel data set.
Utilized data from Eurostat and OECD for tax revenues as a share of GDP.
Higher property and capital gains taxes can reduce inequality.
Excessive tax burdens on households negatively affect saving and increase social polarization.
The findings emphasize the need for a balance between tax efficiency and fairness.

Abstract

In this paper, we consider the analysis of tax revenues from household capital at the level of EU states, in the period 2015-2023, respectively, those regarding property taxation, capital gains from the population/ individuals, as well as the effects of tax benefits granted by the authorities regarding households on distribution/inequality. In this regard, we carry out a case study, through regression, for a panel data set for EU countries, through which we want to demonstrate that the fiscal pressure on households impacts the population's gross investment and saving rate, tax revenues, as well as inequality; the main statistical data come from the Eurostat and OECD-Global Revenue Statistics - Comparative tax revenues databases, expressed as a share of GDP, for the period 2015-2023. The analysis shows that income tax systems reduce inequality, but excessively high tax burdens can harm saving and increase social polarisation. This highlights the importance of balancing tax efficiency with distributive fairness within the European Union.

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