TAXES

The UK's deregulation from the EU will take Boris Johnson initially longer to sell

Social Care Tax Rise Is Austerity By Another Name

The Conversation | Boris Johnson has unveiled an additional 1.25% levy on national insurance paid by wage earners and employers, which will raise £14 billion a year to help pay for the NHS and reforms to social care. Coming on the back of rises to income tax and corporation tax that were announced in the budget in March, it is the latest example of the government using tax rises rather than austerity to rein in public finances that have been hit by the cost of the pandemic. We asked Alex de Ruyter, a Professor of Economics at Birmingham City University, to explain how it would affect different parts of society.



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Taxes, the unpopular conundrum

Fernando G. Urbaneja | In France, president Macron, making good arguments, although not explaining them enough, wanted to raise taxes on fuel and millions of citizens forced him to back down. In Ecuador, President Lenin Moreno has gone through such a trance for the same reason. In Chile, President Piñera is on the verge of eviction for the attempt to raise urban transport rates.


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Japan’s “growth strategy”

LONDON | By Kyohei Morita and Yuichiro Nagai at Barclays | The Abe administration is currently aiming to reach a Cabinet decision on its new growth strategy and “big bone” economic and fiscal reform plans around end-June. The discussions are far-reaching, but from the perspective of market participants, we believe there are four near-term focal points: 1) corporate taxes; 2) labor market reforms; 3) reforms to the pension system, including the Government Pension Investment Fund (GPIF); and 4) special national strategy zones. Here we focus on corporate taxes, likely the only subject of concrete discussion for the markets in June.



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Weekend link fest

A curated selection of links we hope can enlighten us all; some come from our corner, some do from other corners of the net. And as always, our comment widgets are anxious to get your suggestions. How a company becomes a listed company like, let’s say, Facebook Can London pay for the Olympic Games? We give you Mr Hollande Don’t miss how much Africa is growing Hollande tax makes London look…


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California Gov turns to European austerity

NEW YORK | “Cutting alone really doesn’t do it, and that’s why I’m linking the serious budget reductions — real increase to austerity — with a plea to the voters: please increase taxes temporarily on the most affluent and everyone else with a quarter of a cent sales tax,” California governor Jerry Brown said in releasing his $91 billion general fund budget plan this week. These are not easy days for…


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Habemus UK 2012 Budget: happy banks, hurt pensioners, cautious markets

LONDON | Budget Battle began Wednesday after midday in the House of Commons at the rhythm of Hollywood action blockbuster-like slogans, with which chancellor George Osborne wrapped his delivery speech. The Coalition government aimed at convincing Britons in and out the Parliament that it will be able to reduce the deficit while supporting growth. “Britain is going to earn its way in the world,” Osborne shouted at the traditional belligerent level…


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Federal government benefits for 46 million Americans

NEW YORK | One in seven Americans gets help from the federal government to feed themselves and their families. That is 46 million people, many of whom didn’t need help before the crisis. The current situation now leaves them no choice: their business collapsed, they were part of a company that filed for bankruptcy, they lost their home, bills started to pile up… there are many reasons to sign school-age children…


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What Obama didn’t say in his State of the Union speech

NEW YORK | In his fourth speech in front of the nation, president Barack Obama addressed the financial crisis and pledged to fight for economic fairness. In the middle of the race to the November election, the president couldn’t find a better moment to speak about inequality. Earlier on Tuesday, Republican presidential nominee Mitt Romney –Obama’s most likely opponent, according to some experts– disclosed that he paid an effective income…