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Sept. 1, 2020 marked the first day of the Federal payroll tax deferral, which is a temporary suspension of the 6.2% Social Security tax most traditional employees pay out of each paycheck. We answer your burning questions below. 1. What is the payroll tax deferral? On August 8, President Trump issued a memorandum to the
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Launch Interactive Tool Note: Each year we review and improve the methodology of the Index. For that reason, prior editions are not comparable to the results in this 2020 edition. All data and methodological notes are accessible in our GitHub repository. Introduction The structure of a country’s tax code is an important determinant of its economic
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Spain’s upper house passed two major tax bills today: the financial transaction tax (FTT) and the digital service tax (DST).  Both taxes will go into effect in January 2021, three months after their publication in the Spanish Official Gazette. The FTT is a 0.2 percent tax on the purchase of shares of Spanish companies with
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Legalizing recreational marijuana is a hot topic in many states where the state budgets are in disarray because of the coronavirus pandemic and new revenue sources are being sought. Combined with a desire to decriminalize marijuana, the zeitgeist is ideal for legalization. This Election Day, voters in Arizona, Montana, New Jersey, and South Dakota will consider legalization and
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A recent report from the Organisation for Economic Co-operation and Development (OECD) on 2020 tax reforms reveals an increase in the number of environmentally-related tax policies when compared to 2019. Reforms were concentrated in a limited number of countries and their scope continued to be narrow. Gas taxes, carbon taxes, and taxes on electricity consumption
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As a result of the COVID-19 pandemic, the economies of many countries have been significantly damaged. In Sweden, GDP is expected to fall by 4.6 percent in 2020, despite the country’s lack of business and school lockdowns. In August, Sweden’s unemployment rate was 9 percent. Unsurprisingly, Sweden’s economic recovery is a priority in the upcoming
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The work at the Organisation for Economic Co-Operation and Development (OECD) has included plans to propose a global minimum tax. While negotiations are ongoing, it is worth considering a design for the minimum tax that would be neutral toward investment decisions and minimize complexity and compliance costs. Over the summer, a draft of an OECD
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Key Findings Implemented in 1991, Sweden’s carbon tax was one of the first in the world, second only to Finland’s carbon tax, which was implemented a year earlier. Sweden levies the highest carbon tax rate in the world, at SEK 1,190 (US $126) per metric ton of CO2. The tax is primarily levied on fossil
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Today, the House Republican Study Committee released a proposal to address education, labor, and welfare policy with the aim of expanding opportunity, liberty, and free enterprise for all Americans. Among the 118 policy recommendations by the task force in the “Reclaiming the American Dream” white paper are several tax policy changes across the education, labor,
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As the economic crisis driven by the pandemic has continued, a troubling trend in tax policy discussions has arisen. It is common these days to hear finance ministers refer to tax increases that would be narrowly targeted at a particular business model or industry simply based on the fact that those businesses appear to be
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A recent report from the Organisation for Economic Co-operation and Development (OECD) on tax reforms during the past year reveals a tendency towards higher property taxes, often in the form of base broadening, tax rate increases, or both. Even though countries have increasingly targeted property taxes as a source of revenue, on average, they still
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In 2017, Value-Added Tax (VAT) accounted for 62.3 percent of consumption tax revenues in the OECD on average, making it an important source of government revenue. The European Commission (EC) recently published the latest version of their annual report on the “VAT Gap” in 2018 for the 28 Member States of the European Union at
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The economic downturn of the coronavirus pandemic that struck back in March left millions of Americans without jobs. Currently, more than 22 million people are collecting unemployment benefits — much of which is a direct result of the country shutdown. And while the CARES Act offered some relief to those impacted by the economy closure through
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