New Jersey and New York Worst for Tax

September 29, 2009 Taxation in USA  No comments

The states of New York and New Jersey are the worst in the US for doing business, due to their taxation policies.

According to a study published by the Washington D.C. based Tax Foundation, New York and New Jersey are the worst in the country for doing business, as ranked by the State Business Tax Climate Index. New Jersey was ranked last amongst the 50 states, with New York following at 49th. The study aims to create an index to compare state tax policy by analysis of a state’s corporate, personal, sales, property unemployment insurance tax burdens.

The fall in rankings for the two states came during the country’s financial downturn, when state tax deficits forced a rise in personal taxation levels. According to Kail Padgitt, lead economist on the study, the top personal tax rate of 8...

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Value Added Tax to Increase in Switzerland

September 28, 2009 Taxation in Switzerland  No comments

Swiss voters have approved an increase in the country’s Value Added Tax (VAT).

In a nation-wide referendum, held on the 27th of September, Swiss voters approved raising each of Switzerland’s three VAT rates. As of January 2011, the standard VAT rate in Switzerland will be 8%, compared to the current 7.6%. The VAT for lodging services will increase by 0.2% to 3.8%, and reduced rate items like food, newspapers and medicine will see a rate rise of 0.1% to a level of 2.5%.

The VAT increase, which won 54.5% voter approval, is expected to raise an approximate CHF1.1 billion annually, over the course of the next 7 years. The temporary tax increase is aimed at dealing with the CHF13 billion shortfall in Switzerland’s federal disability insurance regime...

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Sweden Cutting Income Tax

September 25, 2009 Taxation in Sweeden  No comments

The Swedish government has announced their plans to reduce the country’s income tax levels.

In an effort to bolster the ailing employment market, the Swedish Government has announced another round of income tax cuts. The tax cut will see a cut of SEK250 from the average worker’s monthly tax duty. It is intended that the lowered income tax levels will encourage Swedish citizens to return to the work force. Prior to the tax cuts, governmental estimates had placed unemployment in Sweden at 8.8% in 2009, reaching 11.4% in 2010.

The cut was announced by Fredrik Reinfeldt, Swedish Prime Minister, on 19th of September. It is scheduled to be presented to parliament on the 28th of September. If accepted, the income tax cuts will come into effect on the 1st January 2010...

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Broadband Tax Promised for UK

September 24, 2009 Taxation in UK  No comments

The British Government has promised to implement a £6 annual tax on every fixed telephone line in the country.

Stephen Timms, Financial Secretary to the Treasury, has stated that the British Government will instate a 50 pence monthly tax on landlines. The levy will be used to fund improvements and infrastructure upgrades of high-speed internet access across the country. The levy is expected to raise approximately £175 million per year.

The tax, which has been dubbed “the broadband tax”, is set to be introduced in November, through the upcoming Finance Bill. Government predictions foresee the tax coming into effect before the end of 2009. Stephen Timms justified the proposed levy at its announcement, saying “We want to make high speed networks nationally available...

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South Korean Economy Witnessing Recovery

September 23, 2009 Taxation in South Korea  No comments

The Korean Government has announced an expected 3.9% increase in their tax collections for 2010.

According to statements made by the Korean Ministry of Strategy and Finance, on the 23rd of September, the country will see an extra KRW3.1 trillion tax receipts in 2010. The total tax take is projected to reach KRW171.1, approximately equivalent to US$143.1 billion.

The details of the increased tax receipt are expanded in the Korean government’s draft budget plan, which will be submitted to the National Assembly on October 1st. Income tax is expected to rise by 9.0% to KRW37.0 trillion. Value Added Tax (VAT) has a projected 5.0% rise to KRW48.7 trillion. Bucking this trend, corporate taxes are expected to experience a fall of 2.0% to KRW35...

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