Public Sector Functions and Taxation
Globalization and the digitalization of the economy are changing the need for state activity: new demands on the labor market, the aging of the population, and a change in social roles are creating a need for reform of social security systems. Local and global environmental problems require the coordinated use of economic policy instruments. European economies will need to make greater efforts in the fields of defense, migration policy, and integration. At the same time, the scope for tax policy interventions is narrowing as capital and labor become increasingly mobile. These changes also have an impact on political processes on opinion-forming and on the structure of electorates. Populism and polarization in opinions and value judgements, but alongside demographic change, can lead to a new composition of political majorities.
“We examine how tax and fiscal policy can ensure economic efficiency, balanced burden sharing and sound public finances.”
Prof. Dr. Dr. h.c. Clemens Fuest, President of the ifo Institute and Director of the Center for Economic Studies