Latest news with #taxes
Bloomberg
3 hours ago
- Business
- Bloomberg
Retaliatory Tariffs Padding Canada's Finances as Expenses Rise
Canada's retaliatory tariffs on US goods are partially offsetting weaker revenue from corporate and sales taxes as federal government expenditures continue to rise. Revenue from customs import duties rose to C$2.4 billion ($1.8 billion) in April and May, according to data released Friday by Canada's Department of Finance. That's up from C$842 million in the same period a year earlier, capturing revenue from retaliatory tariffs that Prime Minister Mark Carney has levied on imports of some US goods.
Daily Mail
4 hours ago
- Business
- Daily Mail
IMF warns Rachel Reeves will have to raise taxes or make cuts such as axing the pensions triple lock and means-testing NHS services
faces having to take drastic action on spending unless she abandons her pledge not to hike taxes on 'working people', the IMF warned today. The international body highlighted the 'difficult decisions' facing the Chancellor in its latest assessment of the UK's position. The report pointed to medium-term pressures from the aging population, suggesting that unless more revenue is raised the pensions triple lock could have to be axed, or NHS services means-tested. The verdict came as Ms Reeves desperately hunts for options to increase taxes as she faces an estimated £30billion black hole in the public finances at the Autumn Budget. Labour has ruled out increasing income tax, employee national insurance or VAT. The tax burden is already set to hit a new high as a proportion of GDP after the last Budget imposed a £41billion increase - the biggest on record for a single package. The IMF praised Ms Reeves for committing to stick to her fiscal rules, and suggested her plans struck a balance between 'supporting growth and safeguarding fiscal sustainability'. The watchdog also commended reforms to curb benefits costs. However, since the assessment was penned the government has humiliatingly dropped the proposals in the face of a Labour revolt. The report said: 'While the UK has scope to raise revenue, which is lower than in some G7 peers, its revenue ratio is close to a post-WWII high. 'Unless the authorities revisit their commitment not to increase taxes on 'working people,' further spending prioritization will be required, to align better the scope of public services with available resources. 'The authorities have already embarked on this process through recent reforms to incapacity and disability benefits, but other avenues for savings need to be considered. 'In particular, the triple lock could be replaced with a policy of indexing the state pension to the cost of living... 'Access to public services could also depend more on an individual's capacity to pay, with charges levied on higher-income users, such as copayments for health services, while shielding the vulnerable. There may also be scope to expand means testing of benefits.' Ms Reeves said: 'Today's IMF report confirms that the choices we've taken have ensured Britain's economic recovery is underway, and that our plans will tackle the deep-rooted economic challenges that we inherited in the face of global headwinds. 'Our fiscal rules allow us to confront those challenges by investing in Britain's renewal. 'We're committing billions of pounds into improving transport connections, providing record funding for affordable homes, as well as backing major projects like Sizewell C to drive economic growth. 'There's more to do, and that's why we're slashing unnecessary red tape and unblocking investment to let British businesses thrive and put more money in working people's pockets.'
Yahoo
6 hours ago
- Business
- Yahoo
Editorial: Texas is talking tax cuts. Illinois? More hikes
The phrase 'there are two Americas' has many meanings. It can mean that there are two justice systems: one for the rich and one for the poor. It can mean right and left. Rural and urban. Ketchup and … the right way to eat a hot dog. When it comes to taxes and spending, state leaders often split into two camps, too — one that talks about priorities and restraint, and one that talks about hiking and expanding. Call them Texas and Illinois. Exhibit A: Texas Gov. Greg Abbott recently announced on the social platform X that state lawmakers this week will be tackling property taxes in a special session. First on the agenda: legislation to cut property taxes. Second on the agenda: legislation to limit spending by government entities that impose property taxes. You don't have to like everything they do in Texas, and we sure don't, but you can't summarily dismiss this kind of thinking, which rarely even enters the discussion in Illinois. While Texas is getting ready to talk about ways to cut taxes and limit spending, our most recent legislative session ended with a handful of new tax hikes and a 'to be continued' on transit that promises to include conversations about other potential tax increases. Importantly, Abbott's message isn't just about people-pleasing tax cuts — it's a call to make relief happen without breaking the bank. Tax cuts and spending cuts have to go hand in hand, otherwise the cycle starts all over again as deficit spending goes up and tax hikes come calling down the road to plug the hole. And to that end, we know it's not all sunshine and roses in Texas. They have fiscal problems, too, namely that local property taxes have grown dramatically in many parts of the state. In Austin, for example, the city's property tax levy increased from $675 million to over $1 billion from 2018 to 2022, representing a 51.4% increase, according to research from the Texas Public Policy Foundation. In 2023, Gov. Greg Abbott and over 80% of Texas voters approved an $18 billion plan aimed at easing the burden on homeowners and businesses. But local governments' overspending has continued to drive up bills, blunting the relief. That's why Abbott is now pushing to rein in local spending as part of the broader fix Texas needs. Still, acknowledging those problems and working to address them is precisely what stands out to us. We like it when leaders are honest about financial problems and willing to tackle them head-on, even when it isn't easy. This isn't a pro-Texas, anti-Illinois commentary. This is an endorsement of good ideas, common sense and getting to work addressing big fiscal problems. We're not saying move to Texas — though Austin and Dallas have their appeal. We like it just fine plunked here in the Midwest next to plenty of fresh water and a climate less prone to life-altering natural disasters. And in the case of the recent loss of young life due to flooding, we're well aware that adequate local government spending on emergency procedures remains vital. We hope Abbott is aware of that, too. But we're seeing Texas leaders bring a refreshingly different mindset to the debate over government and taxpayer dollars. Where Illinois politicians are more likely to stick their heads in the sand, Texas at least appears willing to confront money issues, or at least speak their name out loud. Here in Illinois, the best we've managed to do is form working groups to study our state's property tax problem — which is among the worst in the country — and then move on without real action. That pattern reflects a broader political culture of denial, as if ordinary families aren't struggling to cover mortgages and grocery bills. Not only is tax relief not on the table, but tax hikes are a constant threat here. Illinois is far from alone in this pattern, of course. But as Texas works to tackle taxes and government spending problems, Illinois should at least start talking about them more honestly. _____ Solve the daily Crossword
The Sun
6 hours ago
- Business
- The Sun
Reeves must hike taxes, scrap triple lock or CHARGE for NHS to avoid economic disaster, global finance watchdog claims
RACHEL Reeves must hike taxes, scrap the triple lock or charge for the NHS, an influential finance watchdog warned today. The International Monetary Fund said the Chancellor must make deeply unpopular decisions to tackle soaring debt, sky-high borrowing costs and weak growth – all made worse by an ageing population and ballooning pensions bill. 1 In a damning new report, the IMF declared Ms Reeves and future chancellors must either whack up taxes, axe pillars of the welfare state like the triple lock or make patients pay to see a doctor. It also argued government finances should only be probed once a year to avoid "overly frequent" changes to policy. Currently the Office for Budget Responsibility assesses if the Treasury is on course to meet its borrowing commitments twice a year. The watchdog said: 'Unless the authorities revisit their commitment not to increase taxes on 'working people', further spending prioritisation will be required to align better the scope of public services with available resources." The IMF suggested replacing the pensions triple lock with a policy of indexing the state pension to the cost of living. It also argued access to benefits and public services could be more intensely means tested, with higher income households paying for the likes of the NHS. The IMF's economic update, published on Friday, acknowledged the Chancellor's earlier attempts at welfare reform. But since it was written on July 1, Sir Keir Starmer caved to rebels on his own benches, watering down plans to tackle the ballooning disability benefits bill. That U-turn blew a £5bn hole in the government's budget. The IMF said such reforms were 'critical' to stop the public finances spiralling further. The watchdog also warned that Ms Reeves must stick to tough fiscal plans or risk disaster if the economy falters or interest rates spike. It warned political pressure from MPs for more spending could further derail the public purse. And the IMF found that planning reforms to spur housebuilding also face fierce resistance – but failure to unleash a building boom would damage growth. The latest update from its economists predicted sluggish growth of just 1.2 per cent this year and 1.4 per cent in 2026, and warned of the risk of 'stagflation' – the nightmare scenario of rising prices and a stagnant economy. Despite the grim forecast, Ms Reeves insisted the IMF's report backed her plans. She said: 'Our fiscal rules allow us to confront those challenges by investing in Britain's renewal. 'We're committing billions of pounds into improving transport connections, providing record funding for affordable homes, as well as backing major projects like Sizewell C to drive economic growth. 'There's more to do, and that's why we're slashing unnecessary red tape and unblocking investment to let British businesses thrive and put more money in working people's pockets.' Responding to the report, Shadow Chancellor Mel Stride said: " Rachel Reeves has already fiddled her fiscal targets to allow her to borrow hundreds of billions more over this parliament. She has loosened the rules and then constantly teetered on the brink of breaking them. 'In a context where the Chancellor's credibility is already in tatters, changing the goalposts a second time would run real risks with market confidence.'
The Independent
7 hours ago
- Business
- The Independent
Reeves will have to raise taxes, charge for the NHS or ditch pensions triple lock, warns IMF
Rachel Reeves has been given her strongest warning yet that she will have to break a key party manifesto pledge by hiking taxes, introducing charges to use the NHS or drop the triple lock guarantee on the state pension. The beleaguered chancellor raised taxes by £40bn in her first Budget last year, partly to fund record new investment in the NHS. But now the world's most important financial watchdog has warned that she will probably have to break an election promise to raise 'taxes on working people' – income tax, VAT or national insurance contributions by employees to balance the books. In a report on the UK economy - Article IV Consultation with United Kingdom - the International Monetary Fund warned: 'Unless the authorities revisit their commitment not to increase taxes on 'working people', further spending prioritisation will be required to align better the scope of public services with available resources.' It went on: 'The triple lock [guarantee on the state pension] could be replaced with a policy of indexing the state pension to the cost of living. 'Access to public services could also depend more on an individual's capacity to pay, with charges levied on higher-income users, such as co-payments for health services, while shielding the vulnerable. 'There may also be scope to expand means testing of benefits.' The challenges Ms Reeves is facing, the IMF said, included the impact of Donald Trump's continuing tariffs war with the rest of the world as well as 'little fiscal headroom' in the UK finances.
