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This month a new five-year term for the European Commission began. Now led by President Ursula von der Leyen, the Commission has a broad agenda including several tax policy proposals, many carried over from the previous Commission. These include policies that would change the taxation of large multinationals corporations, and digital services, and target carbon
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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 a capital asset for a profit—they
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This past summer France approved a digital services tax (DST) which taxes the revenues of certain digital companies at a 3 percent rate. Because the tax was expected to mainly impact U.S. companies, the U.S. Trade Representative (USTR) opened a Section 301 investigation into whether the tax was discriminatory against the U.S. The investigation report
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The Tax Foundation appreciates the opportunity to respond to the public consultation document on Global Anti-Base Erosion Proposal (“GloBE”) (Pillar Two). General Comments The significant overhaul of U.S. international tax rules and the recently adopted anti-tax avoidance provisions in Europe and other parts of the world have reshaped international tax policy in a variety of
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Democratic presidential candidates Senators Warren (D-MA) and Sanders (I-VT) have proposals to end full expensing and lengthen depreciation schedules and the New York Times in a recent article analyzes the size of tax cuts, including the effect of full expensing, and the size of investments made by companies. While it is encouraging to see such
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Net wealth taxes are recurrent taxes on an individual’s wealth, net of debt. The concept of a net wealth tax is similar to a real property tax. But instead of only taxing real estate, it covers all wealth an individual owns. As today’s map shows, only three European countries covered levy a net wealth tax,
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Lithuania joined the Organisation for Economic Co-operation and Development (OECD) in 2018, making it the 36th member and the most recent addition to our International Tax Competitiveness Index (ITCI). According to our Index, Lithuania’s tax system is the fourth most competitive and neutral in the OECD, promoting sustainable economic growth and investment while raising sufficient
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The Tax Foundation appreciates the opportunity to respond to the public consultation on the Secretariat Proposal for a “Unified Approach” under Pillar One. The proposal represents a significant shift in how large, highly profitable businesses will calculate their tax liability in the countries where they operate and have sales. There is significant tax uncertainty in
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Last week at the Peterson Institute for International Economics conference on inequality, economist Greg Mankiw illustrated how a universal basic income plan and a means-tested transfer plan can be economically equivalent. His illustration has important implications when evaluating plans such as Andrew Yang’s “Freedom Dividend,” a $1,000 per month basic income proposal, as well as
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Today we examine how European countries rank on consumption taxes, continuing our map series on our recently published 2019 International Tax Competitiveness Index (ITCI). The ITCI measures and compares the competitiveness and neutrality of all 36 OECD countries’ tax systems, looking at corporate income taxes, individual taxes, consumption taxes, property taxes, and the international tax
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Greece has gone through various fiscal reforms over the past several years as it has dealt with challenges associated with recession and over-indebtedness. However, things are now at a point where the new government is considering ways to improve its tax system. Greece ranks 30th out of 36 on our International Tax Competitiveness Index this
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The recently published 2019 International Tax Competitiveness Index (ITCI) measures and compares how well OECD countries promote sustainable economic growth and investment through competitive and neutral tax systems. This week, we examine how European OECD countries rank on individual taxes, continuing our series on the ITCI’s component rankings. The ITCI’s individual tax component scores OECD
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The United Kingdom ranks 25th in our recently released 2019 International Tax Competitiveness Index, a study that measures and compares how well OECD countries promote sustainable economic growth and investment through competitive and neutral tax systems. While the UK has improved its rank by one spot compared to last year, there are multiple measures that
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