EU Should Consider U.S.-Style Citizen Taxation, Report Says

European Union countries should implement citizenship-based taxation if their competition for high earners can’t be curtailed by other means, the EU Tax Observatory, an EU funded tax research platform, argues in a new report.

The right of free movement within the EU means wealthy and high-earning individuals from some EU countries may be lured to others by the proliferation of favorable personal taxation regimes designed to attract foreigners, the report said.

Schemes in Cyprus, Greece, Italy and Portugal are the “most harmful” to other EU countries, according to the report. ...