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Yesterday, the European Council agreed on a new multiannual budget and a recovery program. The Multiannual Financial Framework (MFF) which sets EU budget levels for 2021-2027 totals €1 trillion (US $1.2 trillion). The Next Generation EU (NGEU) recovery package is €750 billion ($840) and is 52 percent grants and 48 percent loans. The NGEU funds
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Key Findings Taxpayers reported about $11 trillion of total income on their 2017 tax returns. About 68.8 percent ($7.5 trillion) of total income reported on Form 1040 consisted of wages and salaries, and about 82.5 percent of all tax filers reported earning wage income. Retirement accounts (such as 401(k)s and Individual Retirement Accounts, or IRAs)
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Since Pedro Sanchez first became Spain’s Prime Minister in 2018 and, now, in conjunction with the left-wing coalition party, Unidas Podemos, he has been working to overhaul the Spanish tax system. The main measures to increase revenue entailed higher taxes for businesses and high-income earners. In the face of the economic shock delivered by the
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To ensure the functioning of its internal market, the EU sets a minimum excise duty on cigarettes. It consists of a specific component and an ad valorem component, resulting in a minimum overall excise duty of €1.80 (US $2.02) per 20-cigarette pack and 60 percent of an EU country’s weighted average retail selling price (certain exceptions
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In response to COVID-19, Hungary has implemented tax relief measures as well as additional tax in some sectors in order to make up revenues. Some tax relief measures have been targeted at “vulnerable” sectors, which include hospitality, entertainment, sports, and media. From July 1, employers in these sectors had social security contributions reduced by 2
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Key Findings Connecticut’s property tax burdens are rising rapidly, with the state’s effective property tax rates on owner-occupied housing now among the highest in the country at 1.7 percent of housing value. Property tax burdens in Connecticut continue to increase even as property values decline, whereas other states—including neighboring Massachusetts and New York—have managed to
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Last week, former Vice President and presumptive Democratic presidential nominee Joe Biden released a set of economic proposals aimed at increasing investment in research & development (R&D) and “breakthrough” technology in energy. Biden should include canceling the upcoming amortization of R&D expenses in 2022, which would pair well with his plan and remove a headwind
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To facilitate and foster cross-border trade and to prevent significant competitive distortions, the European Union requires EU countries to levy a minimum excise duty of €0.36 per liter (US $1.53 per gallon) on gas. As today’s map shows, only Bulgaria sticks to the minimum rate, while all other EU countries opt to levy higher excise
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Today the U.S. Trade Representative (USTR) announced new tariffs in response to the French digital services tax. The tariffs of 25 percent on $1.3 billion worth of trade would not go into effect until January 6, 2021. The tariffs would apply to several make-up products, handbags, and assorted soaps. In January, the U.S. and France
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The following comments were submitted to the Office of the United States Trade Representative regarding docket number USTR-2019-0009. Thank you for the opportunity to provide comments on the Section 301 Investigation. These comments summarize the discriminatory nature of Digital Services Taxes (DSTs) which arise from their design. These comments also provide some details on the policies
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Last week, National Taxpayer Advocate Erin M. Collins released her first report to Congress on the challenges taxpayers have faced related to the coronavirus pandemic, including the tax changes made through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The National Taxpayer Advocate’s findings show that policymakers should prioritize simplicity in the next round
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Corporate taxation has evolved significantly over the last several decades. Corporate income tax rates have come down significantly. Countries have redesigned their tax bases by changing the treatment of losses, interest, and capital costs. International tax rules have also been overhauled. A new report from the Organisation for Economic Co-operation and Development (OECD) provides a
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According to EU law, every EU country is required to levy an excise duty on beer of at least €1.87 per 100 liters (26.4 gal) and degree of alcohol content, translating to approximately €0.03 per 330ml (11.2 oz) beer bottle at 5% abv. As today’s map shows, only a few EU countries stick to the minimum
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The growth of the digital economy over the last several decades has raised important questions about how to tax corporations that no longer need a physical presence in a country to turn a profit there. For months, countries in the Organisation for Economic Co-operation and Development (OECD) have been working towards a multilateral solution to this challenge,
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Today begins Germany’s presidency of the council of the European Union. The EU presidency rotates among EU member countries every six months; Germany’s presidency will last through the end of 2020. In addition to a new six-month presidency, this is also the beginning of an 18-month cycle with Germany, Poland, and Slovenia working on a
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This is the beginning of a map series in which we’ll explore different types of excise taxes, starting with excise duties on wine. If you have ever wondered about the tax consequences of opening a bottle of wine—yes, there is a tax angle to everything—today’s map will provide you with some insights. As one might
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After the 20007-2008 financial crisis, countries were pressed to tax the financial sector to compensate and partly recover the fiscal assistance governments offered to support the sector. However, in the wake of the coronavirus (COVID-19) crisis, some governments are seeking to cut bank taxes to enhance financial support to businesses and public investment projects. While
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The COVID-19 pandemic has damaged the American economy, as unemployment has skyrocketed. Despite job growth in May, the unemployment rate still sits at more than 13 percent, its highest point since the Great Depression. But even before the pandemic, American workers had experienced slow wage growth, for a variety of reasons. Policies to create jobs
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Countries around the world have implemented and continue to implement emergency tax measures to support their economies during the coronavirus (COVID-19) crisis. Providing tax relief to the people and companies that are most affected, until the emergency abates, is welcome, as the health issue has created a substantial economic shock. Taxes that require regular payments
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