Taxes

Individuals respond to taxes by changing their behavior. Hence, when there are tax differences between countries, some might respond by moving to a lower-tax area. For higher-income individuals, the benefits of moving as a result of higher taxes are greater because they have more income or wealth at stake. In a recent article published by

Tamera Ripperda, the commissioner who runs the Internal Revenue Service’s Tax Exempt and Government Entities division, is retiring on Sept. 30 after 33 years at the IRS. Ripperda began working at the IRS’s Exempt Organizations unit in 1988 as a revenue agent. She has held executive leadership positions in three of the four services and

Housing affordability was a major issue even before the COVID-19 crisis and corresponding recession, but the current economic hardship has made it more salient. Immediate support for people struggling makes sense now, but lawmakers should also consider long-term solutions to the problem of high rents, namely by expanding the supply of housing. Improving the tax

According to news reports, the Vermont legislature is ready to advance S54 this month or next, to legalize cultivation and sales of marijuana in the state beginning in 2022. Versions of the bill have been approved by both chambers. The current regulatory situation in Vermont is unique, as marijuana possession has been legal since January

The long wait for the end of the long postponement is over. How did this July 15 compare with regular Tax Day? “‘It was the best of times, it was the worst of times’ applies,” said Joseph McCaffrey, a CPA and partner of operations at Morris + D’Angelo CPAs, in San Jose, California. “Extending the

As Canadian provinces increased their spending due to Covid-19 measures ranging from 0.2 percent of GDP in New Brunswick up to 6.5 percent of GDP in Quebec, their budget deficits ballooned. The economic and health crisis comes at a difficult moment for Canadian provinces as their pre-pandemic budgets were already running deficits. In early February,

U.S. Senator Bernie Sanders said he will introduce legislation to tax what he called the “obscene wealth gains” from billionaires during the coronavirus crisis. Sanders, a self-described democratic socialist, made the announcement in a Twitter post Wednesday evening. Last year, while running for the Democratic nomination, Sanders embraced a proposal that would tax fortunes above

This map shows the real value of $100 in each state. Across the United States, the cost of living fluctuates, as prices for the same goods may be cheaper in some areas—such as rural parts of Arkansas or South Dakota—than in large cities in states like New York or California. This means that the same

As of today, the IRS has ruled that expenses paid with forgiven Paycheck Protection Program loans are not deductible. But what if the loan is processed and expenses are paid in 2020, but the forgiveness determination is not made until 2021? Such circumstances are not only possible but likely to occur, according to Roger Harris,

In July, the UK’s digital services tax (DST) became law after receiving royal assent. The 2 percent tax applies to revenues from social media platforms, internet search engines, and online marketplaces. When developing tax policy, lawmakers often ignore the incidence of a tax, or who actually pays the tax. Many times, this is different from

On June 1, Massachusetts’ ban on sale of flavored tobacco products, including menthol cigarettes, took effect. Flavored vapor products were already banned. When signing the ban into law, Gov. Charlie Baker (R) argued that the ban, which is the broadest in the country, was enacted to limit youth uptake of nicotine products. While youth uptake

The Internal Revenue Service has named James Lee as its new chief of the Criminal Investigation unit, starting Oct. 1. Lee is currently deputy chief of CI and a 25-year veteran of the organization. He will succeed current IRS CI chief Don Fort, who announced last month he plans to retire on Sept. 30. “Jim

Today, Senators Ted Cruz (R-TX) and Martha McSally (R-AZ) introduced the CREATE JOBS Act (Cost Recovery and Expensing Acceleration to Transform the Economy and Jumpstart Opportunities for Businesses and Startups) that would make two significant changes to incentivize investment in the United States. The proposal would prevent scheduled changes that would worsen the tax treatment

The Internal Revenue Service released regulations to restrict a valuable tax break that hedge fund managers were able to claim after an error in 2017 Republican tax law. The change, published Friday, bars money managers from using some types of business entities, including S corporations and passive foreign investment companies, to take advantage of an

On July 21 the Brazilian government sent to its Congress the first stage of its proposed tax reform. The proposal includes unifying two levies on consumption, the so-called PIS and COFIN taxes, into a 12% value-added tax (VAT). Brazil has one of the world’s most complex tax systems. According to the World Bank while a

The National Conference of CPA Practitioners has endorsed legislation to give the Treasury and the Internal Revenue Service the authority to regulate tax preparers. In a letter to Sens. Chuck Grassley, R-Iowa, and Ron Wyden, D-Oregon, and Reps. Kevin Brady, R-Texas, and Richard Neal, D-Massachusetts, the organization urged them to pass S.1192/H.R.3330, “The Taxpayer Protection

On Thursday, U.S. Senators Marco Rubio (R-FL), Bill Cassidy (R-LA), Steve Daines (R-MT), and Mitt Romney (R-UT) released the Coronavirus Assistance for American Families Act (CAAF). This bill would change the way the economic impact payments—commonly known as recovery rebates or stimulus payments—could work in the next round of pandemic-driven relief for households.  The bill’s

Today marked the release of both second-quarter GDP and national accounts data and provides a new glimpse into early changes in state and local revenues and spending. All told, second-quarter (Q2) state and local tax receipts came in about 3.8 percent lower than they did in the same quarter a year ago. Income and sales

As stay-at-home notices are expiring, CPA firms and tax practices nationwide are making decisions on how and when to return to their traditional workspaces. While the process continues, employers and employees have many risk factors to consider. There are multiple sets of guidelines that must be followed, observed Stan Sterna, vice president, professional firms, at

Inheritance tax dates back to the Roman Empire, which collected 5 percent of inherited property in order to pay soldiers’ pensions. Today, the practice is widespread. The majority of European countries covered in today’s map currently levy estate, inheritance, or gift taxes. These countries are Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece,