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Key Findings In general, large industrialized nations tend to have higher statutory corporate income tax rates than developing countries. The worldwide average statutory corporate income tax rate, measured across 176 jurisdictions, is 24.18 percent. When weighted by GDP, the average statutory rate is 26.30 percent. Europe has the lowest regional average rate, at 20.27 percent
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This month a new five-year term for the European Commission began. Now led by President Ursula von der Leyen, the Commission has a broad agenda including several tax policy proposals, many carried over from the previous Commission. These include policies that would change the taxation of large multinationals corporations, and digital services, and target carbon
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In many countries, investment income, such as dividends and capital gains, is taxed at a different rate than wage income. Today’s map focuses on how capital gains are taxed, showing how capital gains tax rates differ across European OECD countries. When a person realizes a capital gain—that is, sells a capital asset for a profit—they
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Key Findings Excessive tax rates on cigarettes approach de facto prohibition in some states, inducing black and gray market movement of tobacco products into high-tax states from low-tax states or foreign sources. New York has the highest inbound smuggling activity, with an estimated 55.4 percent of cigarettes consumed in the state deriving from smuggled sources
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The Tax Foundation appreciates the opportunity to respond to the public consultation document on Global Anti-Base Erosion Proposal (“GloBE”) (Pillar Two). General Comments The significant overhaul of U.S. international tax rules and the recently adopted anti-tax avoidance provisions in Europe and other parts of the world have reshaped international tax policy in a variety of
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Democratic presidential candidates Senators Warren (D-MA) and Sanders (I-VT) have proposals to end full expensing and lengthen depreciation schedules and the New York Times in a recent article analyzes the size of tax cuts, including the effect of full expensing, and the size of investments made by companies. While it is encouraging to see such
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Net wealth taxes are recurrent taxes on an individual’s wealth, net of debt. The concept of a net wealth tax is similar to a real property tax. But instead of only taxing real estate, it covers all wealth an individual owns. As today’s map shows, only three European countries covered levy a net wealth tax,
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This week, the OECD is holding a public consultation as part of its work on the tax challenges of the digital economy. This broad effort is being made in the face of significant uncertainty in international taxes. Part of that uncertainty has been driven by digital services taxes that are being considered by various countries.
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This week, the Massachusetts Senate is expected to vote on a bill which would ban all non-tobacco flavors from tobacco products. The bill also imposes an excise tax of 75 percent of wholesale value. As I have argued before, nicotine products should not be taxed by value. Rather, these products should be taxed based on
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In recent years, several countries have taken measures to reduce carbon emissions using environmental regulations, emissions trading systems (ETS), and carbon taxes. In 1990, Finland was the world’s first country to introduce a carbon tax. Since then, 15 European countries have followed, implementing carbon taxes that range from less than €1 per ton of carbon
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Lithuania joined the Organisation for Economic Co-operation and Development (OECD) in 2018, making it the 36th member and the most recent addition to our International Tax Competitiveness Index (ITCI). According to our Index, Lithuania’s tax system is the fourth most competitive and neutral in the OECD, promoting sustainable economic growth and investment while raising sufficient
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The Tax Foundation appreciates the opportunity to respond to the public consultation on the Secretariat Proposal for a “Unified Approach” under Pillar One. The proposal represents a significant shift in how large, highly profitable businesses will calculate their tax liability in the countries where they operate and have sales. There is significant tax uncertainty in
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Today the OECD Secretariat released a consultation document on the Secretariat’s proposal for a global minimum tax under Pillar 2 of the project to address the tax challenges of digitalization. The proposal raises a number of questions and will require significant work by the Inclusive Framework to get to a coherent proposal that does not
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Today’s map looks at how European OECD countries rank on international tax rules and is the last in our series examining each of the five components of our 2019 International Tax Competitiveness Index (ITCI). International tax rules define how income earned abroad and income earned by foreign entities are taxed domestically, making them an important
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Election Day 2019 had no shortage of storylines, and it’s unsurprising that the pundit class is more interested in a gubernatorial upset in Kentucky or flipped chambers in Virginia than in, say, Coloradans’ rejection of an effort to weaken the state’s Taxpayer Bill of Rights (TABOR). But this is the Tax Foundation, where we care
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On September 27, France released its draft finance bill for 2020, with the final version expected to be enacted by the end of December. President Emmanuel Macron is taking new steps to make good on his promise to improve France’s business environment, proposing further spending and tax reforms. The budgeted reforms include significant changes to
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