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This week, Treasury Secretary Steven Mnuchin endorsed the idea of a global minimum tax following meetings with French Finance Minister Bruno Le Maire in Paris. Secretary Mnuchin was quoted as saying, “We think it’s very important, the concept of minimum taxes, and that there isn’t a chase to the bottom on taxation.” These comments are
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More than 140 countries worldwide – including all European countries – levy a Value-Added Tax (VAT) on purchases for consumption. As today’s tax map shows, although harmonized to some extent by the European Union (EU), Europe’s VAT rates vary moderately across countries. The VAT is a consumption tax assessed on the value added to goods
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Lawmakers have recently begun proposing different policy options that would change the U.S. tax system—ranging from wealth taxes to higher marginal income tax rates to increasing the estate tax. When discussing changes like these, it’s important to understand the composition of taxes under the current system. Using data from the Office of Management and Budget,
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As we think about tax policy proposals designed to target specific or narrow groups of individuals, it’s important to understand who shoulders the burden of income taxes under the current system. The federal income tax system is already progressive, with high-income taxpayers paying a larger share of the tax burden under higher average tax rates
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Most countries have a progressive income tax structure. This means that the tax rate paid by individuals increases as they earn higher wages. The top income tax rate is applied to the share of income that falls into the highest tax bracket. If a country has five tax brackets with a top income tax rate
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Executive Summary  Making Austria a more attractive place to do business has been a core focus of the new government, which has been in charge since 2017. In contrast to previous governments–which offer up tax reform ideas but managed to implement few—the current Austrian administration is in prime position to implement a comprehensive tax reform. Since economic growth is solid
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Key Findings The tax code contains several provisions designed to make higher education more affordable and to encourage educational attainment. These include credits, deductions, exclusions, and tax-neutral savings plans. Many of these benefits overlap and are complex, creating confusion for taxpayers that leads to underutilization of current policies as well as administrative and oversight difficulties.
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Although sometimes overlooked in discussions about corporate taxation, capital allowances play an important role in a country’s corporate tax base and can impact investment decisions—with far-reaching economic consequences. And as today’s map shows, the extent to which businesses can deduct their capital investments varies greatly across European countries. Businesses determine their profits by subtracting costs
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Yesterday, the Organisation for Economic Co-operation and Development (OECD) released a consultation document in connection with its continuing efforts under the Base Erosion and Profit Shifting (BEPS) project Action 1 to address the challenges of taxation in the digitalizing economy. The document provides an outline of proposals that the Inclusive Framework (IF) on BEPS (a
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Side hustles are a smart way to bring in extra money and protect your financial life with multiple income streams. But it can take time and even cost money to build up a consistent side hustle. For instance, you may need to buy a domain name for a website or print marketing materials. Some weeks
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Key Findings Under the Tax Cuts and Jobs Act, the personal exemption is suspended through 2025, balanced by other provisions, including the near-doubling of the standard deduction and an enhanced child tax credit. Some states mirror the federal government’s personal exemption, but many others set their own dollar amounts while using federal eligibility definitions. Conformity
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The IRS recently announced tax penalty relief for taxpayers who didn’t pay enough of their 2018 federal income tax liability last year due to the changes in tax reform. Penalty Relief Explained Federal income tax works on a pay-as-you-go system. That means all taxpayers are required to pay their tax liability as they earn money
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We all know how important it is to save for retirement. If you’ve started contributing to a retirement plan, at work or on your own, the next thing you’ll want to know is how to deal with it on your tax return. Fortunately, entering retirement contributions on your tax return, if necessary, is pretty simple.
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All European countries tax corporate income. However, corporate income tax (CIT) rates differ substantially across countries, ranging from 9 percent in Hungary to 34.4 percent in France. Europe’s average CIT rate (22.5 percent) is slightly higher than the global average (21.4 percent). The map shows statutory CIT rates in 27 European countries. These CIT rates
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