“Taxation, the Level Playing Field and Equity Markets” in “European Capital Markets Union”, M. Haliassos, F. Allen, K. Langenbucher, and E. Faia eds., Cambridge, MA: MIT Press, 2019

Brogi (2019, in this volume) highlights that equity markets remain an important source of funding for smaller companies worldwide. Her paper also investigates the role of taxation in the listing decision. The Commission touches upon this role as well, suggesting the spreading of tax incentives for venture capital (VC). It also addresses taxation more generally, proposing a common consolidated corporate tax base (CCCTB) for multinationals while supporting tax neutrality across funding forms (see EC, 2017). This discussion emphasizes taxation as a central pillar of the CMU architecture. Section 1 highlights tax competition as a threat to the sustainability of the CMU, supporting the quick approval of CCCTB. Section 2 proceeds to examine tax incentives to equity market development.