23. Underlines the fact that, according to an IMF report, the progressivity of tax systems has been weakened in some Member States in recent years, contributing to increasing inequality; considers that the tax wedge has been much higher for low-wage workers and SMEs with higher effective tax rates; recognises that, while taxation is a Member State competence, progressive tax systems help cushion the worst effects of economic crises, and recognises the importance of reducing taxes for labour and enterprises with a view to increasing demand and creating jobs, while ensuring adequate financing of social protection systems; insists that t ...[+++]ax fraud and tax evasion must be dealt with within and between Member States;

89. Stresses that the tax wedge has bigger impact for low-wage and second-income earners, and that this remains an issue; calls on the Commission to take note of the IMF’s October 2013 tax report, which points out that there is scope for better and more progressive forms of taxation;

89. Stresses that the tax wedge has bigger impact for low-wage and second-income earners, and that this remains an issue; calls on the Commission to take note of the IMF’s October 2013 tax report, which points out that there is scope for better and more progressive forms of taxation;

90. Stresses that the tax wedge has bigger impact for low-wage and second-income earners, and that this remains an issue; calls on the Commission to take note of the IMF’s October 2013 tax report, which points out that there is scope for better and more progressive forms of taxation;

25. Calls on the Member States, in agreement with the Commission, to establish a tax incentive scheme to promote youth employment, and to support undertakings of persons under 35, by means of incentives for undertakings – in particular SMEs – to recruit young people on permanent contracts; proposes, to this end, that – as suggested by the Commission in the employment package – the Member States could use the instrument of employment subsidies and a reduction of the tax wedge, particularly to meet the cost to employers of social security and health insurance contributions;

Efforts to reduce non-wage labour costs and to review the tax wedge may also be needed to facilitate job creation, especially for low-wage employment.