Cyprus has managed to promote important reforms and launch public investments through the Recovery Plan, with more than 40 sponsorship projects announced. The amount available through the sponsorship projects is €460 million. The country has received €262 million from the European fund, with additional tranches expected to be disbursed later this year.
British Prime Minister Rishi Sunak announced an early general election for July 4, 2024, without the UK government insignia, indicating it was not government business. Sunak continued his announcement despite being drenched in rain, facing criticism for not using an umbrella. The Conservatives lag behind Labour in polls, with Sunak taking a gamble by calling the election early. Both Sunak and Labour leader Keir Starmer are seen as uninspiring choices for prime minister.
Chinese Premier Li Qiang and Japanese Prime Minister Fumio Kishida arrived in Seoul for a trilateral summit with their South Korean counterpart, their first three-way talks in over four years.
The state of California is implementing policy changes that will impact Hollywood’s creative community who use loan out corporations to manage their business affairs. This change will require Hollywood employers to pay creative talent wages as individuals rather than as fees owed to a business entity. This will result in full income tax withholding and payment of employee and employer taxes on all income earned by the owners of loan-out companies. The change is in line with California’s labor-friendly policy agenda under Governor Gavin Newsom.
Moody’s upgraded the outlook on the government of Cyprus to positive from stable, reflecting confidence in strong fiscal and debt outcomes. Moody’s anticipates that Cyprus will continue to achieve significant fiscal surpluses, projected at around 2.3-2.4 percent of GDP for 2024-25. Finance Minister Makis Keravnos stated that the government will continue to responsibly support economic activity to ensure growth and employment while maintaining healthy public finances.
– More than 100 public interest groups wrote to congressional leaders urging them to pass bold new tax reforms following the expiration of the Trump-era tax cuts in 2025.
– The Tax Cuts and Jobs Act (TCJA) has been proven to be a failure, with the average worker not seeing the financial benefits promised.
– The groups outlined three goals for tax reform in 2025: making the tax code fairer, raising more revenue for investments in Americans, and supporting economic growth.
– Extending the individual and real estate tax cuts from the TCJA past 2025 would add .6 trillion to the national deficit.
– The coalition believes that Congress should reject the failed approach of the Bush and Trump tax cuts and create a fairer tax code that supports necessary investments and inclusive growth.
– There is strong public support for making the tax system fairer and using the revenues raised to invest in care for families.
States, like California, are exploring alternative ways to recoup lost gas tax revenue by piloting a “road charge” program that charges drivers based on the number of miles they drive rather than how much gas they purchase. The program is optional and participants can earn up to 0 in incentives for providing feedback on their experience. The state is considering this alternative revenue source due to the decrease in gas tax revenue collection and the shift towards electric vehicles. The program includes security protocols to protect personal information, and no action or changes are currently being proposed.
The Cyprus Composite Leading Economic Index (CCLEI) remained negative for the third consecutive month in April, with a year-over-year decrease of 0.6%. This was driven by a slowdown in tourist arrivals and an increase in crude oil prices.
The WTI crude oil price has been on a losing streak for the fifth trading session due to a hawkish outlook on interest rates by Federal Reserve policymakers. Fed officials are uncertain about the disinflation process and are considering further tightening of monetary policy. The next trigger for oil prices will be the OPEC meeting scheduled for June 1 to discuss supply policy.
President William Ruto believes that Kenyans are not overtaxed, citing the concept of ‘tax effort’ as a measure of tax revenue as a percentage of GDP. He argues that the government needs to increase tax effort to fund infrastructure projects and meet international standards for service delivery. However, he criticizes the reliance on IMF advice and GDP statistics, pointing out data quality issues and the impact of high taxes on citizens and businesses. Ruto suggests assessing the impact of taxes on the cost of living through household surveys to determine if Kenyans are indeed overtaxed.