First Sugar Tax in US proves Successful

April 21, 2017 Taxation in USA

Sugar taxesWASHINGTON D.C – America’s first tax on soda and other sugary drinks seems to have paid off, with consumers buying fewer sugary drinks, but the level of taxes and revenues not dropping.

On April 18th the results of a new study were published in the medical journal PLOS Medicine, with an evaluation of the outcomes of the first tax on sugar sweetened beverages enacted in the USA.

In March 2015 a “penny per ounce” tax was added to the sale of sugar-sweetened beverages in the USA, a measure which saw an effective cost hike of USD 0.12 per can of drink sold, and a rise of USD 0.68 per two litre bottle sold.

The results of the study suggested that the overall sales of the drinks fell by nearly 10 percent during the course of the past year.

It was also seen that bottled water, and other untaxed...

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Tax Freedom Day Coming Soon

April 19, 2017 Taxation in USA

Tax Freedom DayWASHINGTON D.C. – On April 23rd Americans will have paid enough tax to cover their annual tax obligations.

The Tax Foundation has released its annual Tax Freedom Day report, showing the date that American taxpayers can stop working to pay the government, and can start working to pay themselves.

According to the latest calculations, the Tax Freedom Day in the USA in 2017 will fall on April 23rd, the 113th day of the year.

The total tax bill faced by taxpayers in the USA over the course of this year will be USD 5.1 trillion, which represents 31 percent of the nation’s income, and is made up of USD 3.5 trillion in federal taxes, and USD 1.6 trillion state and local taxes.

The total tax burden is more than the nation will collectively spend on food, clothing, and shelter combined.

It was...

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Saudi Arabia Comes Closer to Sugar and Tobacco Taxes

April 18, 2017 Taxation in Saudi Arabia

Energy Drinks in Saudi ArabiaRIYADH – Smokers and energy drink aficionados will soon feel the financial sting of hefty new taxes on their vices.

The Shura Council of Saudi Arabia has given its endorsement to a new selective tax measure which will see harmful substances heavily taxed.

The new taxes will apply to carbonated drinks, energy drinks, and tobacco, in an effort to curb the spread of obesity and health problems.

The taxes are also intended to raise an extra SAR 10 billion in tax revenues per year, as part of the government’s plan to close it SAR 279 billion budget gap.

Upon approval of the new measure, carbonated sold in Saudi Arabia will face a tax burden of 50 percent of the sale price, while tobacco and energy drinks will face a tax of 100 percent of the sale price.

The new tax shall now be provided to th...

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US Companies Stashing Trillions Offshore

April 13, 2017 International Tax CooperationOffshore Taxation

Taxes in the USAWASHINGTON D.C. – The largest companies in the USA are ramping up their reliance on offshore subsidiaries to place their profits out of reach of tax authorities.

In 2015 the 50 biggest companies in the USA stashed an extra USD 200 billion offshore, using 143 newly created overseas subsidiaries, according to new information released by Oxfam International on February 12th.

Over the course of 2015 the top 50 companies made use of a total of 1 751 subsidiaries, which were primarily located in tax havens.
These subsidiaries were used to hold approximately USD 1.6 trillion in cash and profits.

It was also stated that the problem of offshore cash stashing was exacerbated by the large companies’ propensity for lobbying to receive tax breaks.

Oxfam estimated that for every USD 1 that the comp...

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New Zealanders and Chileans Face Lowest Tax Burden

April 13, 2017 International Tax Cooperation

Taxing wagesPARIS – Taxpayers in Chile are facing a tax wedge of only 7 percent, while those in Germany are burdened with 49.4 percent.

The Organization for Economic Cooperation and Development has released its annual Taxing Wages report, detailing the tax burden faced by individual taxpayers across different countries.

The country with the lowest tax burdens for single individuals was found to be Chile, with a tax burden of 7 percent, while the next lowest countries were New Zealand and Mexico with 17.9 percent and 20.1 percent respectively.

The countries with the highest tax burdens were Germany, Hungary and France, with tax burdens of 49.4 percent, 48.2 percent, and 48.1 percent respectively.

The average rate of the tax burden on labour income across all the countries of the OECD dropped for the ...

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