Economy

The US Federal Reserve System (Fed) has announced that it will raise interest rates. They have been at zero since the start of the pandemic and since the last recession in 2009, they hit their highest level in 2019. But even in 2019, they were very low, with an effective rate of about 2.5%.

While for the second year now we have been tracking new numbers of coronavirus-related cases and deaths several times a day, and estimates for the cost of the economic lockdown range between two and four billion CZK a day (for the Czech Republic), another crucial figure has escaped our attention.

In the latest edition of the International Tax Competitiveness Index, Poland was placed 36th out of 37th OECD countries. In the international ranking of tax systems\' competitiveness prepared by the American Tax Foundation, only Italy scored worse.

The inflation in Hungary is just as bad as it is in the rest of Europe: in 2021 the rate of the inflation was 7.4%, which was a 13-year-old record. It is a logical step from the government that they want to reduce its level and want to moderate the prices.

The European Commission is preparing a new regulation of internet companies called the Digital Markets Act (DMA). It is supposed to require or prohibit a number of activities from platforms, all under the slogan: \"more fair, competitive and innovative business on the internet\".

Amazon is not only a large retailer, but also the creator of the digital marketplace. And on that marketplace, it allows other sellers to sell for a fee. And it also allows those who are interested to do something extra.

Last year, the European Commission came up with proposals to regulate digital services in the form of the Digital Markets Act, which has the potential to significantly change the way the internet works in the EU. We have, therefore, covered this topic more extensively and in more depth in two analyses.

Inflation is often referred to as a tax, imposed without parliamentary approval, without legislation and without considering the consequences. Today’s inflation is special: printing money seemed to be pretty much the only way to respond to the pandemic and to finance rising public spending.

Right before Christmas the EC presented a directive proposal targeting the profits of large multinational companies. The new rules propose imposing a minimum corporate income tax of 15% on large companies.

Estonia is doing all it can to maintain its current income tax system in the EU tax debate, Minister of Finance Keit Pentus-Rosimannus (Reform) told ERR on Tuesday, confirming reports of Estonia, alongside Hungary, blocking a revised set of EU tax rules.