A multitude of research shows that the shadow economy in Lithuania is decreasing. Yet, the pace of change is not as fast as desired. The level of the shadow economy remains high and there are still plenty of reasons for this kind of economic activity to emerge.
Piketty’s publication has reignited the debate over taxation. Proponents of higher taxation seized the opportunity to increase taxes. Even some countries of Central Eastern Europe, a region that has traditionally prided itself on flat taxes, have faltered.
Tax Freedom Day comes on May 18. It is a symbolic day in the year when an average taxpayer has paid all the dues to the government and begins to work for him- or herself. The fact that it comes later than in the previous year means that government expenditures has grown more than the country’s economy.
LFMI’s Teacher’s Manual has won 2016 LOGIN People’s Choice Award for the best online educational tool from the annual gathering of Lithuania’s Internet culture that celebrates the greatest and most innovative achievements of the Lithuanian tech community.
Fast forward to the 21st century Europe. Taxi drivers are the ones who are threatened by new technologies. A simple mobile app made them share the market with a whole lot of new drivers. And let’s be fair – nobody likes sharing a market with new competitors.
Lithuania outstripped its neighbors (Latvia and Poland) and once again was ranked among the top 20 countries in the world in terms of ease of doing business. But Lithuania’s competitors are not sitting around twiddling their thumbs, so last year’s achievement is not guaranteed for this year.
The need for a CMU is clear; capital markets still remain shallow despite the European Union’s founding commitment to the free-flow of capital in the Treaty of Rome. If the green paper’s estimates are correct, 90 million additional euros would be available for business financing in the member-states if capital markets were as deep as the US.
Lithuania’s level of economic freedom has been steadily improving. The country has jumped up by two positions and ranked 13th in the world in the 2015 edition of the Index of Economic Freedom. The index is compiled by the Heritage Foundation in partnership with The Wall Street Journal.
The Lithuanian Free Market Institute is listed among the most prestigious think tanks in the world. This year the University of Pennsylvania’s (USA) Global Go To Think Tank Index ranked LFMI 11th in Central and Eastern Europe. The Global Go To Think Tank Index evaluates almost 7000 think tanks worldwide.
For a fifth year in a row LFMI has ranked Lithuanian local administrations to show which municipalities are best and which are worst in serving their citizens, fostering good governance and providing conditions to attract investment and create prosperity. This year the capital city of Vilnius has topped the ranking.