Fabienne Limacher’s Post

Some good news from Switzerland at the end of the year: The Swiss Federal Counsel has rejected the Jung Socialists estate tax initiative calling for a 50% estate and gift tax on estates exceeding CHF 50 million. For more information on the controversial matter, read the latest newsletter from Fabienne Limacher and me.

😡 A return to austerity 😡 Yesterday the European Parliament vote in favour of new fiscal rules meaning that EU Member States will need to cut their budgets by over 100 billion Euro a year from 2027 or instead raise the equivalent amount through their own means. Europe needs to urgently correct this mistake by putting in place enough own resources and an ambitious tax policy in order to mitigate the negative effects of the cuts that come with the new rules. says Judith Kirton-Darling https://lnkd.in/enyiY4sb

This Week’s Analysis & Policy Observatory (APO) Top Report is: Allegra Spender’s Tax Green Paper  ➡️ apo.org.au/node/329119 An independent approach to tax reform that sets out to build consensus on the need for change and encourage debate on how best to achieve it.   The paper observes that the tax system is a uniquely influential policy lever that, if used correctly, can change the course of the pressing economic issues facing Australia. With this in mind, it asks us to consider how we could re-align the system to better meet the needs and values of today’s Australia. The social, economic and environmental priorities for tax reform include:  🏘️ Affordable housing 👪 Intergenerational equity 🔨 Labour productivity 💼 Business investment, and 🚀 Greenhouse gas emissions #taxreform #taxpolicy #publicpolicy

The debate about wealth distribution in New Zealand often centres on taxing the rich more. However, this might not be the panacea it's often portrayed to be. Even if we were to impose a 100% tax rate on the wealthiest, it wouldn't be enough to cover all government expenses. The real issue is not in the amount of tax being collected, the issue is government spending habits. We need more efficient fiscal management rather than just increasing taxes. More sustainable solutions should be explored to address our financial challenges without stifling economic growth.

Prorogation: Wake Me Up on March 25th! So our Parliament has been prorogued until March 24th. What does this mean for the cleantech related announcements from previous budgets and the latest Fall Economic Statement? Well, in a word, nothing as prorogation keeps the government in power but all parliamentary activities from existing bills and committee work is stopped. What happens next? When Parliament is back in session on March 25th the governing party, in this case the Liberals, will deliver a speech from the throne to lay out their intentions going forward. What happens after that? Well, based on the comments made today by all the other parties there is likely to be a vote of non-confidence in the government which would trigger an election. Any proposed legislation or changes won't go forward and would need to be reconsidered by the next Parliament. Which means the proposed changes to SR&ED and the last 4 Economic Investment Tax Credits may not go forward. Stay Tuned and Get Ready for More Uncertainty in 2025!

The debate about wealth distribution in New Zealand often centres on taxing the rich more. However, this might not be the panacea it's often portrayed to be. Even if we were to impose a 100% tax rate on the wealthiest, it wouldn't be enough to cover all government expenses. The real issue is not in the amount of tax being collected, the issue is government spending habits. We need more efficient fiscal management rather than just increasing taxes. More sustainable solutions should be explored to address our financial challenges without stifling economic growth.

From our Austria economist Afonso Alves Monteiro: "A ÖVP-FPÖ coalition could pose a downside risk for growth, as the FPÖ’s pro-Russia plus anti-EU and anti-immigration agenda is likely to be met with international backlash [...]. Meanwhile, a rise in corporate taxation under an ÖVP-SPÖ government could hamper investor appetite."   Read more by clicking here, including analysis from our panel of analysts: https://lnkd.in/dEiuVuca

The Commentary on the Global Anti-Base Erosion (GLOBE) Rules cheekily points out that the term "benefits related to such rules" in the definitions of Qualified Income Inclusion Rule (IIR) and Qualified Domestic Minimum Top-Up Tax (QDMTT) has been crafted with the broadness of a buffet table at a wedding. It's meant to include any type of benefit imaginable, covering all the ways Related Benefits might sneak in, like a tax incentive trying to disguise itself as a generous grant or a cheeky subsidy. In other words, if a jurisdiction is tossing advantages around like confetti, whether from a national government or somewhere more local, there is no fair game! So, whether it's tax perks or non-tax goodies like grants and subsidies, it's a benefits bonanza! If it looks like a Related Benefit and smells like a Related Benefit, it probably is one!

Our paper, together with Matthias Krapf, is finally out in the European Economic Review. Using Swiss municipality panel variation, we estimate that a 1% increase in a jurisdiction’s corporate net-of-tax rate raises aggregate corporate income by around 3.5%. This effect is mainly driven by non-central regions, while urban centers show no statistically significant corporate income response. We explore margins of firm responsiveness, revenue effects, and implications for regional policy. https://lnkd.in/eWR36qNX

❝ The tax regime in Australia is changing. It’s becoming more complex, with higher levels of tax and greater uncertainty around when and how you’ll be paying it. ❞ John Laver, CIMA®, Head of Investments at Generation Life - Outthinking today. highlighted three key areas advisers should focus on when addressing tax for their clients: 1) Unintended consequences of not considering tax 2) The compounding benefit of saving on tax 3) Behavioural consequences of tax Felipe Araujo, Michael Jaeger, Harry Page, Ilda Thom, Kit Tong