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The following article was published in our article directory on December 9, 2010.
Learn more about SpinDistribute Article Distribution System.
Article Category: Business
Author Name: Amanda xzh
Obama has made it clear that will not increase the tax burden on middle-class families. However, the U.S. government's current financial situation has been pushed to lose the trust of his edge. A should be "who took out more money in the pockets of the" debate is between Democrats and Republicans launched the United States.
Currently, the U.S. government's financial deficit scale up to 9% of GDP. Federal government bonds held by the public accounts for 62% of GDP. To change this situation, the U.S. government urgently equivalent spending cuts or increased revenue 2% GDP, federal debt by 2015 and stable scale. The remaining question is, who the tax increase.
Last week, the U.S. House and Senate Democrats and Republicans who raise taxes to whether to start direct confrontation. The Bush administration proposed a comprehensive tax cuts expire at the end of this year, the administration is keen only to annual income not more than 25 million households, or annual income of not more than 20 million people continue to enjoy tax cuts, rather than the collective of all the rich tax cuts. Obama believes that tax cuts for the wealthy will continue in the next 10 years, 700 billion U.S. dollars to reduce taxes, thus increasing the U.S. government budget deficit.
However, the idea of Obama and the Democratic Party did not get Republican support. Most Democrats accuse Republicans "with millionaires and multi-millionaire stand together" to give these rich Republican tax cuts "kidnapping" middle class tax cuts permanent. Republicans argued that they refused to give any tax increase because it would drag on economic recovery.
America is full of obscure tax breaks and all kinds of deferred tax puzzle, it is not only the tax consulting industry thriving, but also the energy cost of economic growth. In fact, such abnormal activities as long as the ban, without new taxes to raise taxes and open up the premise, amplified sources of revenue each year will bring 1 trillion in tax revenue.
Since the financial crisis, Britain is probably the most determined countries to increase taxes. May 22, 2009, the British began to staff salary £ 150,000 plus 10% increase in personal income tax, from 40% to 50% on. Subsequently, a series of policies have been put forward to increase tax revenue.
Last year, the British Government to change corporate tax rates, primarily related to business in the overseas business income of patents and trademarks and other intellectual property income. The news came out, McDonald's, Kraft Foods, Procter & Gamble, Colgate Palmolive, and Yahoo and other American companies have European headquarters will be relocated from London to Switzerland.
After the financial crisis, many companies feel business difficulties, the British government's decision to increase taxes in addition to transnational corporations have fled, and even British companies are trying to move overseas.
This year in July, the British government announced a regulatory reform bill, the Monetary Authority (FSA) in order to meet the G20 session of the "salary limit order", had been to the bank to increase taxes. Some top-ranking bank officials have given very angry and have said base to move abroad because of limited pay taxes will directly affect their international competitiveness, but also allow banks to the loss of a large number of financial professionals.
As unbearable regulatory stalker, threatening the great British bankers FSA said that if the issue of tax increases and then said something salaried, will consider the company headquarters to other countries or regions.
However, the British government's hardline government is clearly rare. While many companies have chosen to flee the United Kingdom, but the British Government has not changed the original intention of raising taxes. It is also because the British government's firm stance, so there is enough spare capacity to participate in helping the UK into Europe and other European Union countries debt crisis.
Although countries are growing financial pressure, but the real trouble is after all a minority. These "minority" was forced to increase taxes under supervision. Clearly, most countries do not want to face the situation. In Ireland, for example, does not withstand the pressure has been refused a small financial assistance from the outside world, it is because once signed assistance agreements, will have to accept harsh conditions.
So far, the EU and IMF lending in Ireland to set the conditions including the requirement of Ireland to raise taxes and reduce costs.
Irish government plans to cut 15 billion euros 4 years, the fiscal deficit, to achieve the 2014 deficit to GDP ratio of the control requirements in the EU within 3%. The conditions out of the EU also includes requirements to improve the Irish corporation tax and VAT. The country's current corporate tax at a lower level of 12.5% VAT is 21%. Earlier, the EU and Greece to accept International Monetary Fund, is a condition of IMF assistance to value-added tax from 19% to 23%.
In addition, European media reported on December 6, following Greece and Ireland, Portugal is likely to become the next bailout of the euro area member states. Portugal, the EU and the IMF may need to provide 45 to 60 billion euros aid. Without help, may not make it through this year.
In order to avoid being forced to raise taxes, Portuguese Prime Minister Jose Socrates has been trying to self-taxes. Portuguese Government has proposed a tax increase savings and public sector pay cuts budget, Socrates hope this policy can support the Portuguese through.
However, to enjoy the low taxes in Europe are used to clear people will not easily accept the Government's decision to increase taxes. Tax increase European governments have become the "straw", leading to the fall of the cabinet or even government reorganization.
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