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The Finance 202: Joe Biden’s tax plan would barely dent growth, conservative group finds

The Finance 202: Joe Biden’s tax plan would barely dent growth, conservative group finds

The analysis concludes Biden’s plan would raise $2.8 trillion over the next decade from higher taxes on businesses, corporations and the wealthiest households. Over that time, AEI projects the higher taxes would reduce economic growth by a relatively modest 0.16 percent.

The plan would “make the tax code more progressive,” AEI’s Kyle Pomerlau and Grant Seiter write. And after slightly crimping growth in its first decade, it would “reduce debt-to-GDP in the second decade, leading to slightly higher GDP. However, in the long term, his plan would not raise enough to stabilize debt-to-GDP and would lead to a 0.18 percent smaller economy.”

The macroeconomic drag the AEI model anticipates roughly aligns with other analyses from the Tax Foundation and the Penn Wharton Budget Model, Pomerlau notes. In other words, rolling back most of the Trump tax cuts wouldn’t bring about the economic Armageddon the Trump campaign has depicted.

Neither would it jack up taxes on every American. 

Vice President Pence made that claim during his debate with Sen. Kamala Harris (D-Calif.),  Biden’s running mate, last week. The AEI analysis finds the top 1 percent of taxpayers would see a 14.2 percent hit to their after-tax income next year. The rest of the top 5 percent would face a small uptick in their burden. But everyone else would receive an after-tax income bump. The largest such increase, of 11.3 percent, would go to the bottom 10 percent, thanks to a temporary expansion of the child tax credit, according to AEI.

The analysis finds that starting in 2030, the Biden plan would impose “modest” tax hikes on the bottom 95 percent of earners, which it attributes to higher taxes on businesses. That would appear to violate Biden’s pledge not to raise taxes on anyone earning less than $400,000

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Japan stimulus measures should focus on economic growth, says head of ruling party tax panel

Japan stimulus measures should focus on economic growth, says head of ruling party tax panel

By Yoshifumi Takemoto

TOKYO, Oct 14 (Reuters)Japan must compile another extra budget to have enough funding to boost economic growth and paying for disaster preparations, a ruling party lawmaker said on Wednesday.

Akira Amari, the head of the Liberal Democratic Party’s tax panel, said any new stimulus measures should shift focus to boosting economic growth from providing support for current conditions.

Amari, speaking during a group interview with media, also said large businesses heavily reliant on foreign tourism could expect to start facing capital shortages next year.

His remarks came after local media reported on Tuesday that Prime Minister Yoshihide Suga plans to order his government to compile extra stimulus measures as early as November, a move that would highlight the government’s resolve to return growth to levels last seen before the COVID-19 crisis.

Japan has already rolled out a combined $2.2 trillion in two stimulus packages in response to the health crisis, including cash payments to households and small business loans to help them withstand the blow to demand.

(Reporting by Yoshifumi Takemoto; Writing by Daniel Leussink; Editing by Clarence Fernandez and Gerry Doyle)

((daniel.leussink@thomsonreuters.com; Twitter: @danielleussink; +81-3-4563-2747;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Assembly hearing on financial transaction tax set for Monday as Democrats refine proposal

Assembly hearing on financial transaction tax set for Monday as Democrats refine proposal


New Jersey Assemblyman John McKeon, D-Madison, introduced the bill in July.

New Jersey Assemblyman John McKeon, D-Madison, introduced the bill in July. | (AP Photo/Julio Cortez)

An Assembly committee plans to discuss a major and controversial bill next week that would impose a tax on electronic stock trades processed in New Jersey, potentially generating billions of dollars in revenue for the state.

Monday’s hearing by the Assembly Financial Institutions and Insurance Committee comes as several stock exchanges have threatened to move their data centers in North and Central Jersey out of state if the Legislature and governor move forward with the tax.

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The bill, which Assembly Democratic spokesperson Kevin McArdle said the committee will discuss but not vote on, is expected to be heavily amended before any vote, and will likely include changing the tax rate on transactions and making the tax temporary.

The original bill, NJ A4402 (20R), which Assemblyman John McKeon (D-Essex) introduced in July, would impose a quarter-cent tax on every financial transaction processed in New Jersey.

Democrats have hired Paul Hastings LLP, a Washington, D.C.-based law firm with expertise on the topic, to help design the proposal. An invoice from the firm shows it’s charged Senate Democrats $30,000 so far.

Background: New Jersey’s economic slowdown from the coronavirus pandemic has cratered some revenue sources, resulting in the state agreeing to borrow billions to fund the current budget.

Financial transaction taxes are nothing new, but the idea to apply them to New Jersey’s vast server farms was first proposed by the late congressional candidate David Applefield in an op-ed earlier this year. McKeon, who read the op-ed, introduced the bill the day after Applefield died.

The bill has since gained traction, with Gov. Phil Murphy and legislative leaders all indicating support for taxing electronic trades.

Impact: Monday’s hearing is the latest indication Democrats are serious about the

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Tax Advisory Services Market Procurement Intelligence Report with COVID-19 Impact Analysis

Tax Advisory Services Market Procurement Intelligence Report with COVID-19 Impact Analysis

The Tax Advisory Services market will register an incremental spend of about $10 billion, growing at a CAGR of 9.00% during the five-year forecast period. A targeted strategic approach to Tax Advisory Services sourcing can unlock several opportunities for buyers. This report also offers market impact and new opportunities created due to the COVID-19 pandemic. Request free sample pages

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201011005024/en/

SpendEdge has announced the release of its Global Tax Advisory Services Market Procurement Intelligence Report (Graphic: Business Wire)

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Information on Latest Trends and Supply Chain Market Information Knowledge centre on COVID-19 impact assessment

SpendEdge’s reports now include an in-depth complimentary analysis of the COVID-19 impact on procurement and the latest market data to help your company overcome sourcing challenges. Our Tax Advisory Services market procurement intelligence report offers actionable procurement intelligence insights, sourcing strategies, and action plans to mitigate risks arising out of the current pandemic situation. The insights offered by our reports will help procurement professionals streamline supply chain operations and gain insights into the best procurement practices to mitigate losses.

Insights into buyer strategies and tactical negotiation levers:

Several strategic and tactical negotiation levers are explained in the report to help buyers achieve the best prices for Tax Advisory Services market. The report also aids buyers with relevant Tax Advisory Services pricing levels, pros and cons of prevalent pricing models such as volume-based pricing, spot pricing, and cost-plus pricing and

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Australia rushes through tax cuts in COVID-19 economic stimulus

Australia rushes through tax cuts in COVID-19 economic stimulus

By Colin Packham



a large pool of water: Construction workers go about their day near scaffolding at a construction site in central Sydney


© Reuters/David Gray
Construction workers go about their day near scaffolding at a construction site in central Sydney

SYDNEY (Reuters) – Australia’s parliament approved A$17.8 billion ($12.78 billion)in personal tax cuts on Friday, quickly pushing through measures announced earlier this week to support the country’s coronavirus-ravaged economy.

Looking to get 1 million people back to work, Australia’s conservative government pledged billions in tax cuts and measures to boost jobs on Tuesday, the bulk of which are retrospective from July 1.

Australia’s economy saw its worst contraction on record in the second quarter due to the coronavirus and unemployment has hit its highest in over two decades, even as the country managed to contain the outbreak better than many of its peers.

Prime Minister Scott Morrison said on Friday 11 million Australians will benefit.

Video: Federal Budget 2020 reveals Australia headed to record debt of almost $1 trillion (ABC NEWS)

Federal Budget 2020 reveals Australia headed to record debt of almost $1 trillion

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“This is a plan to boost business, to boost jobs,” Morrison told reporters in Canberra. “Our plan for the economic recovery from the COVID-19 recession is moving. It’s happening. It’s law.”

Earlier this week, Australian treasurer Josh Frydenberg said the tax cuts will begin to take effect in December, stoking some concern that much needed stimulus remains weeks away.

The economy has been reliant on a wage subsidy scheme since March but this support will be reduced over the coming months before being stopped in March 2021.

Australia’s economy shrank 7% in the three months that ended in June, the most since records began in 1959, while the unemployment rate hit a 22-year high of 7.5% in July as businesses and borders closed to deal with the coronavirus.

Australia pledged

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