Federal Tax

On a yearly basis the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called “bracket creep,” when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any increase in real income. The IRS used to
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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 208 jurisdictions, is 23.03 percent. When weighted by GDP, the average statutory rate is 26.47 percent. The average top corporate rate among EU countries is 21.68
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Tax competition at its best. Politico reports that the Canadian federal government will allow accelerated depreciation for some investments to compete with the U.S. expensing provision that was implemented as part of the U.S. Tax Cuts and Jobs Act (TCJA). The Canadian government has been concerned that the U.S. move has made the U.S. a more
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Greece has faced some of the most difficult economic challenges in the developed world over the last decade. Instead of growing, the Greek economy has contracted in eight of the last 10 years, growing by small amounts in just 2014 and 2017. In 2011, the Greek economy shrank by 9.2 percent. The unemployment rate peaked
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As lawmakers return to Washington, D.C. after the midterm elections, one of their tasks will be addressing technical corrections to last year’s tax reform law. Issues often arise after legislation is enacted, and Congress can pass “technical corrections” to make laws accurately reflect congressional intent or to fix clerical errors. A letter sent to the
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Tracking The Economic Impact of U.S. Tariffs and Retaliatory Actions A new study provides modern-day evidence for what economists have long said: tariffs are bad, and international trade should be free. The International Monetary Fund (IMF) paper finds that tariff increases have negative effects on output and productivity that are magnified “when tariffs rise during
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Key Findings The European Commission (EC) has introduced two proposals intending to tax digital companies that have significant activity in Europe. The long-term proposal is a framework for establishing taxable digital presence in EU countries. An interim proposal would tax the revenues from some digital activities of multinational corporations at 3 percent. The 3 percent
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As the House of Representatives this week considers a bill that would make the individual reforms of the Tax Cuts and Jobs Act (TCJA) permanent, one important change to keep in mind is the increased standard deduction. The TCJA lowered individual income tax rates, and nearly doubled the standard deduction. Now, nearly 29 million more
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France is proposing to transform a tax subsidy for low earners into a broad reduction in employer payroll taxes designed to fund welfare programs and implement tax cuts that will directly benefit individuals and households. The 2019 budget proposal released yesterday by Finance Minister Bruno Le Maire highlights that the proposals will lead to €26
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Key Findings The Tax Cuts and Jobs Act, by lowering the corporate tax rate from 35 percent to 21 percent, will cause two things to happen: a lower tax burden on old capital, leading to higher profits on existing investments; and a lower tax burden on new capital, incentivizing businesses to make new investments. Higher
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The Tax Cuts and Jobs Act (TCJA) made significant progress in improving the cost recovery treatment of business investment by enacting 100 percent bonus depreciation. Full expensing, or the immediate write-off of all business investment, is a key driver of future economic growth, and can have a larger pro-growth effect per dollar of revenue forgone
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