Tag: OECD

In a latest document from the Tax Foundation (TF), it was noted that, the largest Organization for Economic Cooperation and Development (OECD) is more inclined to the proceeds from the consumption tax, the United States prefer more personal income tax, while at the raising relatively is differb a little from the consumption tax. TF said that "this difference of political issues, given that consumption taxes raise revenue with less economic damage than individual income taxes" According to the recent data for 2013, consumption taxes were the largest source of tax revenue for the OECD countries, increasing by an average of 32.7 percent of their tax revenues. However, taxes on consumption rose by only 17.4 per cent of revenue for the United States, mainly because the United States is the only OECD country without value-added tax (VAT). Instead, most governments states in the US use the retail sales tax on the final sale of most goods and excise taxes on the production of goods such as cigarettes and alcohol. The United States instead relies heavily on individual income tax, accounting for 38.7 percent of total government revenue in 2013, compared with the OECD average of 24.8...

In its latest review of the US economy, which was published on June 16, the Organisation for Economic Co-operation and Development (OECD) recommended that increased long-term government spending on infrastructure and education should be funded by higher tax revenues. In particular, the OECD suggested that work towards putting a price on carbon, such as by implementing President Barack Obama's proposal for a USD10 per barrel tax on oil and his Clean Power Plan, would provide additional funds, while also reducing greenhouse gas emissions. Worsening income inequality in the United States could, the OECD suggested, be countered if the Administration was to "expand the earned income tax credit … and make tax expenditures less regressive." For US businesses, the OECD also recommended making the research tax credit refundable for new firms, which are not able to take advantage of the existing non-refundable credit because of low profitability. Such a measure aimed at increasing productivity in the economy would be an alternative to the current congressional patent box proposals that are not favored by the OECD. Few of the OECD's proposals are likely, in fact, to be...