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The United Kingdom ranks 25th in our recently released 2019 International Tax Competitiveness Index, a study that measures and compares how well OECD countries promote sustainable economic growth and investment through competitive and neutral tax systems. While the UK has improved its rank by one spot compared to last year, there are multiple measures that
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The recently published 2019 International Tax Competitiveness Index (ITCI) measures and compares how well OECD countries promote sustainable economic growth and investment through competitive and neutral tax systems. This week, we examine how European OECD countries rank on individual taxes, continuing our series on the ITCI’s component rankings. The ITCI’s individual tax component scores OECD
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In addition to the federal estate tax of 40 percent, some states levy an additional estate or inheritance tax. Twelve states and the District of Columbia impose estate taxes and six impose inheritance taxes. Maryland is the only state to impose both. Washington State’s 20 percent rate is the highest estate tax rate in the
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Tax Bulletins usually clarify the application of existing laws and regulations to new or disputed circumstances, but for the second time in as many years, Pennsylvania’s Department of Revenue arguably went further, adopting new nexus standards for corporate income tax purposes in a bulletin. The action has left some policymakers and practitioners perplexed about both
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Last week we released the International Tax Competitiveness Index 2019, a study that measures and compares the competitiveness and neutrality of all 36 OECD countries’ tax systems. In the coming weeks, we will illustrate how European OECD countries rank in each of the five components of the Index: corporate income taxes, individual taxes, consumption taxes,
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Any successful entrepreneur is usually on the lookout for opportunities to start a new business or expand current operations. Those expansions usually come with many considerations, of which tax is just a part. The tax part, however, can be quite a challenge if the tax system is itself complex or penalizes growing businesses. Last week,
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Today, the OECD released a new consultation document on a proposal to change how some multinational businesses are taxed. This proposal lays out a unified approach to addressing the tax challenges arising from the digitalization of the economy. In May, the OECD published a program of work laying out several approaches to changing where multinationals
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One of the best financial moves you can make is to open a retirement plan and consistently contribute to it. Getting an early start means decades of compound interest working in your favor as a result of your contributions, and, in many cases, your employer’s contributions. It also means putting less pressure on yourself and
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When bills and other short-term financial goals dominate your budget, retirement contributions tend to fall by the wayside. How can you possibly focus on retirement when you have all of these other expenses? Plus, is it really necessary to get started now? You probably have decades to go before retirement. Considering how little you can
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I-R-A. Who knew 3 letters could be so daunting, yet yield so many benefits for our financial lives. IRA stands for Individual Retirement Account. And if you’re like most people, you likely think it sounds like a fancy investment tool that is reserved for people with loads of money and an unattainable level of financial
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The rise of robo-advisors occurred shortly after the 2008 financial crisis. Positioned as a digital solution to the many overwhelming factors involved when trying to build an investment portfolio, it’s often marketed to Millennials – but it’s certainly not just for the 22 to 39-year-old demographic. Seriously though, what are robo-advisors? In simplest terms, a
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If you work as an employee, you’re probably used to having income tax withheld from your paycheck. When you get a bonus, however, there may be more confusion about how it’s taxed and what will be left. Here are the most important things to know about how bonuses are taxed. Employee bonuses are taxable, just
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Explore Our New Interactive Tool Download Promotional Toolkit Introduction The structure of a country’s tax code is an important determinant of its economic performance. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities. In contrast, poorly structured tax systems can
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With the exception of Estonia and Latvia, all European countries covered in today’s map levy a dividend tax. Top dividend tax rates vary significantly across European countries. While Slovakia levies a tax of only 7 percent on dividend income, Ireland taxes dividends at 51 percent. Over the last two years, four European countries have made changes to
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In 2017, revenue from personal income taxes made up 23.9 percent of total tax revenue across OECD countries. Countries tax labor income in various ways through payroll taxes, personal income taxes, and, in some cases, surtaxes. From 2017 to 2019, seven European countries in the OECD changed their top personal income tax rates. Of these
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Countries around the world often design their tax policies to become attractive targets for foreign investment. These policies can be anything from a system with special preferences for certain industries to a well-designed tax system based on principles of sound tax policy. Systems that are rife with special preferences and complexities can create distortions in
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