Latest news with #taxation
Wall Street Journal
6 hours ago
- Business
- Wall Street Journal
The Supreme Court's FCC Tax Dodge
Can Congress empower administrative agencies to raise taxes without concrete constraints? Six Justices ruled they can on Friday (FCC v. Consumers' Research) in the Supreme Court's most disappointing decision this term. At issue is a Federal Communications Commission program that Congress established in 1996 to subsidize 'universal service.' The law gives the FCC broad authority to levy taxes on telecom providers and their users to finance universal service, however the agency defines the term. The FCC, in turn, has delegated authority to implement the tax to a nonprofit.
Washington Post
15 hours ago
- Business
- Washington Post
Deficit-financed tax cuts aren't real tax cuts
Everyone is glad to see the waiter when he brings the appetizers. No one is excited to see him when he comes around with the bill. What is true of waiters is also true of the politicians who serve us: Cheers greet those who announce new benefits, while those who suggest raising taxes to pay for them meet with voter fury. This is why the United States has a persistent budget deficit exceeding 6 percent of the economy.
News.com.au
20 hours ago
- Business
- News.com.au
Aussie Super sector breathes sigh of relief after Trump administration axes ‘revenge' tax
Australia's Super sector has breathed a sigh of relief after the Trump administration walked back a proposed 'revenge' tax for foreign investors, which would have wiped billions of dollars. US Treasury Secretary Scott Bessent confirmed overnight he struck a deal with countries tightening taxes on multinationals 'that defends American interests'. Under the international taxation rules agreed by 140 governments, including the former Biden administration, multinational companies would pay a minimum 15 per cent tax regardless of where their global headquarters are. On his first day as president, Donald Trump withdrew the US from the agreement and threatened retaliatory duties on any country that imposed the minimum multinational tax. 'After months of productive dialogue with other countries on the (Organisation for Economic Co-operation and Development) Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests,' Mr Bessent posted on social media. 'OECD Pillar 2 taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and months.' He added that he 'asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill'. Had a deal not been reached, nearly half a trillion US dollars in Australian super investments could have been impacted. After months of productive dialogue with other countries on the OECD Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests. President Trump paved the way for this historic achievement. On January 20, the President issued two… — Treasury Secretary Scott Bessent (@SecScottBessent) June 26, 2025 The Association of Superannuation Funds of Australia (ASFA) said on Friday it was 'a really welcome step from the US Treasury Secretary'. 'There's still a way to go – the amendments need to be made by lawmakers,' chief policy officer James Koval said. 'There are a number of other amendments under consideration. 'This section of the legislation would have changed the risk return profile of investment in the US, which would have been a poor outcome for all involved. 'The superannuation sector has around USD$450 billion invested in the United States, the single largest market outside of Australia. 'This is money invested in US infrastructure, equities, bonds, and other areas.' Anthony Albanese earlier also welcomed the update, saying he raised Australia's concerns with Mr Bessent on the sidelines of the G7 Summit in Canada last week. 'This would adversely impacted on Australian investment if it had have been implemented, particularly on investment from superannuation companies,' the Prime Minister told reporters. 'And one of the things that we held earlier this year in Washington DC was a round table of Australian investment funds who are willing and keen to invest in the United States – just one way in which the Australia US economic relationship is an important one.'
ABC News
a day ago
- Business
- ABC News
Millionaires who pay no tax and richest and poorest postcodes revealed in ATO tax stats
There were 91 Australians who earned more than $1 million in total income yet paid no tax in 2022-23, according to newly released data from the Australian Taxation Office (ATO). The figures also show Australia's highest earners live in Sydney's eastern suburbs, taking in Darling Point, Edgecliff, Rushcutters and Point Piper. Analysis of the data by the Australia Institute and the ABC shows overall, these 91 millionaires claimed $390 million worth of different deductions to reduce their tax bills to zero. The vast bulk of this was the 19 of them who made $291 million in donations to tax-deductible charities, or an average of about $15.4 million each. Using a tax agent to manage tax affairs is also an allowable tax deduction for all taxpayers, meaning some of those who earned more than $1 million but paid no tax claimed these expenses. This group of non-tax-paying high-earners claimed $62.8 million in deductions for managing their tax affairs — an average of $690,815. The Australia Institute's chief economist, Greg Jericho, says this shows the nation's wealthiest and richest can use the tax system to reduce tax bills to zero "at a time when we are debating changes to superannuation taxation for the small number of people with balances over $3 million". He says this happens because the wealthy can pay "high-priced tax lawyers and accountants" to do it. The data also shows 2.3 million Australians declared rental income in 2022-23, with about 71 per cent of landlords owning only one investment property (just over 1.6 million). About 19 per cent (423,000) own two properties, around 6 per cent (130,000) own three properties, while around 4 per cent of landlords (47,000) own four properties. There are very few landlords (18,837) with five investment properties and a similarly small group with six or more (19,389). Overall net rental income for 2022–23 was $1.6 billion, down from $6.0 billion in 2021–22. More landlords made profits than losses in 2022–23. The average total net rent median was $52 and the average was $696. Of about 1,130,000 landlords who made a loss (were negatively geared), the median loss was $5,487 and the average was $9,346. The ATO figures show the country's highest-earning postcodes were in Sydney, with seven suburbs making up the top 10. The postcode with the highest average taxable income ($279,712) was in Sydney's eastern suburbs — postcode 2027 — which takes in Darling Point, Edgecliff, Rushcutters and Point Piper. That was followed by Double Bay (postcode 2028) and Woollahra (2025). Melbourne's Toorak and Hawksburn — postcode 3142 — came in fourth place, then we jump back to Sydney's eastern suburbs, with Vaucluse, Watsons Bay, Dover Heights, Rose Bay North and HMAS Watson (2030) coming in fifth place. But those living in NSW were also among the nation's lowest average income earners. The lowest-income postcodes were in areas with higher numbers of university students. The area taking in students studying at The University of Newcastle's main campus at Callaghan, postcode 2308, earned an average taxable income of $20,878. The next poorest postcode was 2052, taking in the University of NSW area, with an average taxable income of $20,892. Since reporting started in 2010–11, surgeons have remained the highest-paid occupation, with 4,247 individuals reporting an average taxable income of $472,475 in 2022–23. This was followed by anaesthetists: 3,658 individuals in this category earned an average taxable income of $447,193. The third-highest-paid occupation was "financial dealers", of which there were 5,147 with taxable incomes of $355,233. The poorest paid jobs were in the "personal careers and assistants" category, earning an average taxable income of $22,533. This was followed by "fast food cooks" earning $22,722 and "apprentices and trainees in hospitality" earning $25,358. More than 16 million Australians lodged tax returns in 2022–23. The ATO's data showed 10.3 million individuals claimed a total of $28.3 billion in work-related expenses — an average of $2,739 per person. The average superannuation account balance increased from $164,000 in 2021–22 to $173,000 in 2022–23. Net tax from companies for the 2022–23 income year increased by 9.2 per cent to $140 billion (compared to $128 billion in 2021–22). The biggest company tax liability came from the mining industry (39 per cent of company net tax) with the industry's net tax growing from $42.3 billion to $54.4 billion. The luxury car tax increased by 17.9 per cent to $1,153 million.
The Guardian
a day ago
- Business
- The Guardian
US voters: share your views on Trump's one big beautiful bill act
The one big beautiful bill act, which would enact Donald Trump's taxation and spending priorities, is currently being considered in the US Senate. The legislation was passed by the Republican-controlled House of Representatives in May. Republicans, who also have a narrow Senate majority, are likely to make changes to the more than 1,000-page tax-and-spending bill. Trump wants to sign the legislation by 4 July, but it's unclear whether Republicans in both chambers can agree on its provisions by that deadline. We would like to hear views from voters about the one big beautiful bill act. What do you think of the bill as it's currently written? And, what would you like included in Trump's major piece of tax-and-spending legislation? We're particularly interested in hearing from Republican voters. Share your views in the form below or by messaging us. Please include as much detail as possible. Please include as much detail as possible. Please note, the maximum file size is 5.7 MB. Your contact details are helpful so we can contact you for more information. They will only be seen by the Guardian. Your contact details are helpful so we can contact you for more information. They will only be seen by the Guardian. If you include other people's names please ask them first. Contact us on WhatsApp at +447766780300. For more information, please see our guidance on contacting us via WhatsApp. For true anonymity please use our SecureDrop service instead.
