The residence-based taxation of interest income in the EU faces the difficulty that taxpayers may evade taxation by holding bank accounts in other countries. The EU therefore makes considerable efforts to achieve cooperation among EU member states in order to improve tax enforcement. The present...

Governments need to either cut other spending or raise more tax revenue to service the additional debt resulting from shocks like the Covid-19 pandemic. This paper considers the case when governments decide to raise additional revenue. A key policy issue is how the additional tax burden should...