OECD tax-benefit model

The European Commission has supported TaxBEN since 2002. Results provide inputs into EC flagship publications (such as the different editions of the Employment and Social Development in Europe report by DG EMPL [1] and the in the Taxation Trends in the European Union report [2] by DG TAXUD), the European Semester country reports and recommendations, as well as a number of Commission publications and databases that provide monitoring capabilities in the context of key convergence objectives, such as the European Pillar of Social Rights. TaxBEN also features regularly in analytical reports and studies undertaken, commissioned or supported by the European Commission.

More precisely, the European Commission uses the tax and benefit indicators produced by TaxBEN in the context of  the European Semester and for benchmarking of tax wedge (DG ECFIN), minimum income (DG EMPL), unemployment benefit (DG EMPL) and minimum wage (DG EMPL). In addition, the Social Scoreboard contains one indicator (net earnings of a full-time single worker without children earning an average wage) based on it. Finally TaxBEN has also been used for the impact assessment on the Directive on “Adequate minimum wages for workers across Member States”, which Commission proposal was published on 28 October 2020.

Tax and benefits indicators based on the TaxBEN model are available in the European Commission database (https://europa.eu/economy_finance/db_indicators/tab/) and in a restricted set in the Eurostat database (https://ec.europa.eu/eurostat/data/database)

[1] https://ec.europa.eu/social/main.jsp?advSearchKey=esdereport&mode=advancedSubmit&catId=22&policyArea=0&policyAreaSub=0&country=0&year=0

[2] https://ec.europa.eu/taxation_customs/business/economic-analysis-taxation/taxation-trends-eu-union_en