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To facilitate and foster cross-border trade and to prevent significant competitive distortions, the European Union requires EU countries to levy a minimum excise duty of €0.36 per liter (US $1.53 per gallon) on gas. As today’s map shows, only Bulgaria sticks to the minimum rate, while all other EU countries opt to levy higher excise
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Today the U.S. Trade Representative (USTR) announced new tariffs in response to the French digital services tax. The tariffs of 25 percent on $1.3 billion worth of trade would not go into effect until January 6, 2021. The tariffs would apply to several make-up products, handbags, and assorted soaps. In January, the U.S. and France
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The following comments were submitted to the Office of the United States Trade Representative regarding docket number USTR-2019-0009. Thank you for the opportunity to provide comments on the Section 301 Investigation. These comments summarize the discriminatory nature of Digital Services Taxes (DSTs) which arise from their design. These comments also provide some details on the policies
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Last week, National Taxpayer Advocate Erin M. Collins released her first report to Congress on the challenges taxpayers have faced related to the coronavirus pandemic, including the tax changes made through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The National Taxpayer Advocate’s findings show that policymakers should prioritize simplicity in the next round
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Corporate taxation has evolved significantly over the last several decades. Corporate income tax rates have come down significantly. Countries have redesigned their tax bases by changing the treatment of losses, interest, and capital costs. International tax rules have also been overhauled. A new report from the Organisation for Economic Co-operation and Development (OECD) provides a
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According to EU law, every EU country is required to levy an excise duty on beer of at least €1.87 per 100 liters (26.4 gal) and degree of alcohol content, translating to approximately €0.03 per 330ml (11.2 oz) beer bottle at 5% abv. As today’s map shows, only a few EU countries stick to the minimum
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The growth of the digital economy over the last several decades has raised important questions about how to tax corporations that no longer need a physical presence in a country to turn a profit there. For months, countries in the Organisation for Economic Co-operation and Development (OECD) have been working towards a multilateral solution to this challenge,
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Today begins Germany’s presidency of the council of the European Union. The EU presidency rotates among EU member countries every six months; Germany’s presidency will last through the end of 2020. In addition to a new six-month presidency, this is also the beginning of an 18-month cycle with Germany, Poland, and Slovenia working on a
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This is the beginning of a map series in which we’ll explore different types of excise taxes, starting with excise duties on wine. If you have ever wondered about the tax consequences of opening a bottle of wine—yes, there is a tax angle to everything—today’s map will provide you with some insights. As one might
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After the 20007-2008 financial crisis, countries were pressed to tax the financial sector to compensate and partly recover the fiscal assistance governments offered to support the sector. However, in the wake of the coronavirus (COVID-19) crisis, some governments are seeking to cut bank taxes to enhance financial support to businesses and public investment projects. While
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The COVID-19 pandemic has damaged the American economy, as unemployment has skyrocketed. Despite job growth in May, the unemployment rate still sits at more than 13 percent, its highest point since the Great Depression. But even before the pandemic, American workers had experienced slow wage growth, for a variety of reasons. Policies to create jobs
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Countries around the world have implemented and continue to implement emergency tax measures to support their economies during the coronavirus (COVID-19) crisis. Providing tax relief to the people and companies that are most affected, until the emergency abates, is welcome, as the health issue has created a substantial economic shock. Taxes that require regular payments
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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 an asset for a profit—they face
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Today it was reported that Treasury Secretary Steven Mnuchin sent a letter to the finance ministers in the United Kingdom, France, Italy, and Spain communicating concerns the U.S. government has with ongoing OECD negotiations on international tax rules. Those concerns have led the U.S. to withdraw from the negotiations. U.S. Trade Representative (USTR) Robert Lighthizer,
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Of all alcoholic beverages subject to taxation, stiff drinks—and all distilled spirits—face the stiffest tax rates. Ostensibly, this is because spirits have higher alcohol content than the other categories, like wine and beer. This round of information is on us, so help yourself to the map below to see whether you’re shaken or stirred by how your state’s
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This month, the German government agreed to a new round of fiscal support for the economy in light of the challenges from the ongoing pandemic. The total cost of the new package is €130 billion and is in addition to the supplementary budget adopted earlier in the year of €156 billion. Combined, the two fiscal
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