Latest news with #taxExperts
New York Times
22-05-2025
- Business
- New York Times
Bill Would Give Newborns $1,000 in ‘Trump Accounts'
When Republicans first rolled out a proposal last week to invest $1,000 on behalf of every American baby born over the next four years, they were not exactly subtle about whom the public should credit for the cash. The original draft called for the funds to be put into new a 'money account for growth and advancement,' or, as the bill suggested they be called, a 'MAGA account.' Apparently, though, endowing the accounts with the name of President Trump's political movement was not clear enough. As part of a series of last-minute changes House Republicans made to their broad fiscal package Wednesday night, they decided to just cut to the chase. The money would now be deposited in a 'Trump account.' Under the bill, children born between Jan., 1, 2025, and Jan. 1, 2029, would receive the money, which would be invested on their behalf in financial markets. Once they had grown up, they could withdraw the proceeds to pay for certain expenses, including going to college or buying a house. The child's parents, or other third parties, could also contribute to the account. While the benefit of the $1,000 initial investment from the government is clear, the accounts have otherwise puzzled tax experts. People could only contribute post-tax income to the accounts, and gains in the accounts would also be taxed when money was withdrawn. That would appear to make the 'Trump account' function much like a typical investment account, rather than a tax-advantaged account like an individual retirement account or a health savings account.
Reuters
21-05-2025
- Business
- Reuters
German tax revenues up 10.2% in April, finance ministry says
BERLIN, May 22 (Reuters) - Germany's federal and state government tax revenues rose 10.2% in April from the same month a year ago, the finance ministry said on Thursday. In its monthly report, the ministry said the substantial increase was mainly down to a one-time effect in state taxes, where revenues jumped by more than 190% from the previous year. Total tax revenues hit 64.08 billion euros ($72.63 billion) in April, the report said. From January to April, tax revenues increased by 9.7% from the same period in 2024 to 286.34 billion euros. Europe's ailing, largest economy is under pressure after it contracted in 2024 for the second consecutive year. Stagnation is expected this year. Significant impulses to boost tax revenues are not expected for the time being, although both industrial production and exports have recorded recent increases, said the report. "The uncertainty associated with international trade conflicts, in particular, is likely to burden the economy," the ministry said. Germany is expected to be badly affected by U.S. tariffs due to its export-oriented economy. The U.S. was Germany's biggest trading partner in 2024 with two-way goods trade totalling 253 billion euros ($289.66 billion). For 2025, tax experts see revenues climbing to 893.3 billion euros, up 3.7% from the previous year, said the report. Last week, the council of tax experts said Germany's economic downturn coupled with tax relief would likely lead to a 81.2 billion euros reduction in total tax revenues between 2025 and 2029 compared with a projection in October. ($1 = 0.8822 euros)
