Sumary of COVID: Are tax hikes imminent to pay for pandemic?:
- British Prime Minister Boris Johnson this week announced tax hikes worth 12 billion pounds (€14.05 billion, $16.5 billion) a year to help plug a hole in the country’s finances from the COVID-19 pandemic.
- The state-funded National Health Service (NHS) urgently needs to clear a backlog of 5.5 million non-COVID patients.
- Later, the government plans to boost the country’s social care sector, which has suffered from decades of underfunding.
- In March, the UK government said it would hike corporation tax by 6 percentage points to 25%, warning that the pandemic would leave long-term economic “scarring.
- In May, the government estimated that the final COVID bill would likely reach 372 billion pounds, having borrowed 299 billion last year alone to prop up its economy.
- The US Internal Revenue Service would be reformed to be more efficient at collecting some $630 billion in unpaid taxes.
- Stiff opposition from Republican lawmakers has prompted some Democrats to concede that the ambitious plans will have to be scaled back.
- Some economists think Germany won’t need to raise taxes for now, due to its healthy public finances Germany OK, for now As Germany prepares to go to the polls on September 26, the Munich-based Ifo Institute for Economic Research published a report detailing the main political parties’ economic plans.