A Micro Tax or an Automated Transaction Payment Tax is a radical change going from a larger and more complicated tax system to a system with a single comprehensive revenue neutral Automated tax, replacing the present system of personal and corporate income taxing. In this podcast, we aim to look at what it is, similar taxes that have already been introduced, political movements and the pros/cons of introducing this tax.
The tampon tax has become an on-going discussing topic. Support to repeal this tax has increased in the last years, with activists arguing that menstrual hygiene products should be classified as tax-exempt necessities, alongside other items such as food, tap water and medicine. This issue pertains to gender equality, affordability and women’s health. While the large majority of the countries around the world still tax menstrual hygiene products as non-essential goods, some countries are starting to lift or reduce the tax. In 2004, Kenya became a trailblazer when it was the first country in the world to repeal the tampon tax. Listen to this podcast to learn more on the topic, by discovering both sides of the argument, and understanding the implications following an amendment of the tax.
The history of tax is also one of conflict, danger and upheaval.The purpose of the state has always been to protect the population from internal and external dangers. And that is from where it derives its legitimacy. Now it is in the nature of things that wars and other crises devour enormous financial resources that have to be borne by the general public. In such moments, rulers often get creative and temporarily introduce new measures to meet the costs arising from war or the fight against epidemics. In many cases, however, these new forms of taxation remain in place and are not, after all, of such a provisional nature as once claimed. In this piece, I will discuss the longevity of provisional taxation and use the Swiss direct federal tax, which has its origins in the military tax of the First World War, as an illustration.
COVID-19 has changed the dynamics of how our world functions today. Wearing masks has become the new “normal” and could be considered a mandatory accessory. However, how did states manage to make medical products available on a large scale? This podcasts discusses how COVID-19 has changed trade and tariffs of medical supplies and how this can have an impact on medical care.
In this episode of Tax Talk, we will be talking about last week’s G7 agreement to implement a global minimum tax rate, what it means, and how it affects developing countries and smaller economies.
Bibliography Allingham, G., & Sandmo, A. Income Tax Evasion: A Theoretical Analysis. Journal of Public Economics 1, no. 3- 4, Nov. 1972, pp. 323–338. doi: 10.1016/0047-2727(72)90010-2 Brosio, G., Cassone, A. & Ricciuti, R. Tax Evasion Across Italy: Rational Noncompliance or Inadequate Civic Concern?. Public Choice 112, 259–273 (2002). doi: 10.1023/A:1019985022106 Chiarini B., Marzano E., & Schneider, F. Tax rates and tax evasion: an empirical analysis of the long-run aspects in Italy. Eur J Law Econ […]
In 2017, President Emmanuel Macron repealed the French Solidarity Wealth tax (in French: Impôt de solidarité sur la fortune or ISF), in order to support investment, employment, innovation and economic growth in France. The ISF had to be paid by individuals whose estate exceeded the taxation threshold which was set at 1 300 000 EUR. This decision triggered a strong discontent among the lower-middle class, which has been captured by the yellow vests movement. The public pushback against the suppression of this specific tax may be very surprising as the economic consequences of the ISF were very disappointing. The deep nature of the dissatisfaction was eminently symbolic, as this wealth tax has been raised as a political symbol of the left-right ideological divide on taxation. President Emmanuel Macron chose to honor the individual freedom to enrich oneself and refused to reintroduce the ISF. By doing so, he confirmed the image of being a « President of the rich ». This determination in pursuing important fiscal reforms while ignoring popular opposition will certainly have political consequences, which will be assessable during next presidential elections that take place in April 2022.
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