Scandinavian countries are well-known for their broad social safety net and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. High levels of public spending naturally require high levels of taxation. In 2019, Denmark’s tax-to-GDP ratio was at 46.3 percent, Norway’s at 39.9 percent, and Sweden’s at
In December, scholars David Hope and Julian Limberg released a study with the London School of Economics (LSE) examining the economic effects of reducing tax rates for high-income individuals and corporations. The paper illustrates how overlooking an important element of the tax system—the structure of the tax base—can lead to an incomplete understanding of how
Originally intended to be presented during the fall of 2020, and postponed due to the COVID-19 pandemic, a new United Kingdom budget will finally be published on March 3. Although normally most tax rate changes come into effect on budget day or soon after, 2021’s tax reforms might need to wait. Consultations on policies that
Lawmakers in Alabama introduced several tax-related provisions last session, but the pandemic cut short their efforts. This year, policymakers returned with HB 170, which passed both chambers unanimously, and which Governor Kay Ivey (R) signed into law as Public Act 2021-1 on February 11. The bill combines pandemic-era tax policy responses with broader tax policy
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West Virginians would face extraordinarily high taxes on vapor products in state if Senate Bill 68 becomes law. The bill, sponsored by Sen. Ron Stollings (D) and Sen. Richard Lindsay (D), would increase taxes on liquid used in vapor products from 7.5 cents per milliliter (ml) to $1 per ml—an increase of over 1,300 percent.
Table of Contents Key Findings The U.S. joined many other developed nations in adopting territorial provisions and anti-base erosion rules as part of the 2017 tax reform. One major piece of that reform, that is not typical in other territorial systems, is a new definition of currently taxable foreign earnings, Global Intangible Low Tax Income
A recent report on tax revenue sources shows the extent to which the United States and other OECD countries rely on different taxes for government revenues. Policy and economic differences among OECD countries have created variances in how they raise tax revenue, with the United States deviating substantially from the OECD average on some sources
This 10-course bundle is taught by a CPA. February 15, 2021 2 min read Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners. Tax season is notoriously
Table of Contents Key Findings In 2019, OECD countries raised on average one-third of their tax revenue through consumption taxes such as the Value-added Tax (VAT), making consumption taxes the most important revenue source. Social insurance taxes and individual income taxes were the second and third most important sources of tax revenue in the OECD,
A recent report on tax revenue sources shows the extent to which OECD countries rely on different tax types. Today’s map looks at the corporate income tax, which, compared to individual taxes, social insurance taxes, and consumption taxes, generates a relatively small share of tax revenue in Europe. In 2019—the most recent year for which
Stop spending on accountants when you can be one yourself. February 10, 2021 2 min read Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners. This time
The nine legislative measures released by the House Ways and Means Committee under the budget reconciliation instructions begins to put legislative text to Congress’ next round of pandemic relief. The nine measures comprise more than half of the $1.9 trillion in additional coronavirus-related relief put forth by congressional Democrats and President Biden. The Ways and
The House Ways and Means Democrats’ just-released proposal to expand the child tax credit for one year represents a significant expansion of benefits but comes with several administrative challenges. It would be included in President Biden’s larger $1.9 trillion in economic relief package moving through the budget reconciliation process. The Child Tax Credit (CTC) would
Since the 2008 financial crisis, financial transaction taxes (FTTs) have been debated as a potential instrument to address financial market instabilities and as a source for tax revenue. Today’s map shows which European OECD countries impose a type of FTT. FTTs are levied on the trade in financial instruments such as stocks, bonds, or derivatives.
Key Findings The EU budget agreement reached in 2020 called for a new digital levy as a funding mechanism. Evidence on the taxes paid by digital companies calls into question the arguments in favor of a digital levy. EU policymakers should focus on continued implementation of digital VAT policies and ongoing international negotiations rather than
This week, the Treasury Department added several new appointees as staffing continues following President Biden’s inauguration. Among them were three scholars of international tax policy: economist Kimberly Clausing and law professors Rebecca Kysar and Itai Grinberg. These three will be influential in developing the administration’s approach to changing U.S. tax rules for multinational corporations and
The Internal Revenue Service (IRS) has released data on individual income taxes for tax year 2018, showing the number of taxpayers, adjusted gross income, and income tax shares by income percentiles. The new data shows how taxes changed in the first tax year after passage of the Tax Cuts and Jobs Act (TCJA) in December
President Joe Biden is calling for a third round of economic impact payments to households as part of his $1.9 trillion American Rescue Plan. Under the plan, the payments would be $1,400 per person, topping off the recent round of $600 payments for a combined $2,000 per person. Senate Republicans have proposed payment amounts of
Revenues from Value-added Taxes (VAT) make up a significant share of total tax revenues for many countries. Among OECD countries with a VAT, 21 percent of revenues come from that tax alone. The COVID-19 crisis has impacted tax policies in several ways, and VAT have also been affected both by reduced revenues, temporary carveouts and