The need to consolidate public budgets is perhaps already evident, even to those political parties that have long perceived resources as limitless and freely available. Investors worldwide eagerly await opportunities to lend to debt-ridden Slovakia. Consolidation plans are beginning to emerge, the Financial Policy Institute at the Ministry of Finance has published the impact of austerity and tax measures on GDP.
Who should be taxed, how should they be taxed and what purpose should it serve? These questions are as old as the world. To help answer them, in his 1776 work “The Wealth of Nations” the Scottish economist and philosopher Adam Smith formulated four principles of taxation. According to him, taxes should be proportional to the benefits that a person derives from belonging to society.
According to the increasingly popular narrative, apartments purchased for investment purposes are almost synonymous with unoccupied buildings, that is uninhabited properties. The villains are investors, both institutional (apartment funds) and individual (wealthy individuals). They allegedly buy apartments from the market in order to “speculatively” refrain from placing them on the market in anticipation of a further increase in real estate prices.
In an interview with Seznam Zprávy, the head of Madeta (a Czech dairy company) Milan Teplý stated several facts that contradict basic financial knowledge. He began the interview by saying that Madeta will be profitable this year. However, he immediately added: “It’s a sin to be in profit, we won’t get subsidies.” We do not understand this. Why should a company that is making profit seek subsidies and ask the state for support?
The directive imposing a pan-EU 15 percent minimum effective corporate income tax on large companies, would, according to the European Commission, address tax challenges caused by digitalization and ensure that companies pay “their fair share of tax.”
Czechs have to hold out for one more month. After June 17, 2022, they will start earning for themselves. Until then, for 167 days, they work only for the state. That makes this year one of the least free since the Liberal Institute has been counting Tax Freedom Day since 2000.
At the end of 2021, the European Commission (the EC) released a “Proposal for a council directive on ensuring a global minimum level of taxation for multinational groups in the Union”.
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.
People will stick with cigarettes, which, although more harmful than the alternative, will bring more taxes into the state coffers. After three years, tobacco tax increases are back on the table. In English, it is known as the “sin tax”. Similar to the tax on alcohol or beer. The public perceives these taxes as a way for consumers of addictive substances to ‘pay’ for their sins. The truth is that smokers pay a lot.
The cost of emissions reductions over the last two decades in the EU has been significant. In Slovakia alone, people pay hundreds of millions of euros a year to support renewable energy sources, with millions more going on insulation and boiler subsidies, or the development of electromobility. A significant part of the cost is hidden in higher prices for goods, as manufacturers have to buy emission allowances.