Wealth

Governments require businesses to remit various types of taxes—one being labor taxes. Although labor taxes are generally not borne by businesses, they add to the administrative burden of complying with the tax system. Today’s map shows how complex—or easy—it is to remit labor taxes across Europe. One way of measuring the administrative burden of labor
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Today, the European Commission announced new budget plans including loans, grants, and some revenue offsets. The proposals follow other support mechanisms for workers and businesses that were designed in response to the Covid-19 pandemic and economic shutdown. The Commission is adjusting its work program for 2020 to “prioritize the actions needed to propel Europe’s recovery
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As policymakers explore options for Phase 4 relief for businesses and individuals, it is important to understand why and how the CARES Act modified tax rules for businesses, including the changes to net operating loss (NOL) deduction rules such as NOL carrybacks. Rather than revisiting these changes and restricting NOL carrybacks, policymakers should explore ways
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This analysis was prepared by a select group of JD candidates at the Institute of International Economic Law (IIEL) at Georgetown University in conjunction with TradeLab. All research and analysis was supervised by Georgetown faculty, Tax Foundation experts, and outside tax professionals. The Tax Foundation would like to thank the report authors for an exceptionally
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Most countries provide tax relief to families with children—typically through targeted tax breaks that lower income taxes. While all European OECD countries provide tax relief for families, its extent varies substantially across countries. One way to measure targeted tax relief for families is to compare the tax burdens on labor of a family with one
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This week’s map continues our look at state revenue sources, this time focusing on revenue collected through the general sales tax. Sales taxes are the second largest source of state and local tax revenue, accounting for 23.6 percent of total U.S. state and local tax collections in fiscal year 2017 (the latest data available; see Facts
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As state and local governments begin to relax their restrictions on business and individual activities, the debate has begun over what policies will best help the economy recover from the COVID-19-induced shutdown. The Tax Foundation’s General Equilibrium Model suggests that allowing businesses to immediately deduct or “expense” their capital investments in the year in which
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Among other revenue provisions (Division B) of last week’s House-passed Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, the bill would make changes to certain refundable and non-refundable credits aimed at taxpayers with dependents under the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and Child and Dependent Care Tax Credit (CDCTC). This
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Key Findings Average workers in the United States face two major taxes on wage income: the individual income tax and the payroll tax (levied on both the employee and the employer). Although slightly more than half of a U.S. worker’s payroll tax burden is paid by their employer, the worker ultimately pays this tax through
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Key Findings Average wage earners in the OECD have their take-home pay lowered by three major taxes: individual income, payroll (both employee and employer side), and value-added (VAT) and sales taxes. Before accounting for VAT and sales tax, the average tax burden a single average wage earner faced in the OECD was 36 percent of
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Key Findings The COVID-19 pandemic and the attendant economic contraction will wreak havoc on state and local tax revenues, with projections of a 15-20 percent decline in state revenues. Lawmakers and governmental associations have called for between $300 billion and $1 trillion in state and local aid. As much as $535 billion of the nearly
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Recently, Tax Foundation has been comparing various ways to improve the tax treatment of new capital investments. One of these options is a Neutral Cost Recovery System (NCRS), which reduces the bias in the tax code against long-term investments. As my colleagues have written, Improving capital cost recovery will be crucial to the post-pandemic effort
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Most countries’ individual income taxes have a progressive structure, meaning that the tax rate paid by individuals increases as they earn higher wages. The highest tax rate individuals pay differs significantly across European OECD countries—as shown in today’s map. The top individual income tax rate applies to the share of income that falls into the
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Yesterday, Pascal Saint-Amans, the Director of the Centre for Tax Policy and Administration at the OECD, announced that the negotiation timeline for new digital taxation proposals has been impacted by the pandemic. Previously, governments were expected to agree on a set of policies by early July in order to have an implementation plan by the
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A recent report outlines to what extent OECD countries rely on various tax revenue sources. Today’s map looks at property tax revenue in European OECD countries, which, compared to other types of taxes, accounts for a relatively small share of total tax revenue. In 2018, property taxes accounted on average for only 4.6 percent of tax
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