Treasury

Policy elites blind to tax burden

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Policy elites blind to tax burden

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.

Dollar consolidates weekly gains ahead of mid-tier data

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Dollar consolidates weekly gains ahead of mid-tier data

The US Dollar strengthened due to upbeat PMI data, with the USD Index closing in positive territory for the fourth consecutive day. The S&P Global Composite PMI showed business activity expanding at an accelerating pace in May. Japan’s National Consumer Price Index rose 2.5% in April. The Reserve Bank of New Zealand stated that lowering interest rates was not being discussed in the near term. UK Retail Sales declined 2.3% in April. Gold fell more than 2% on Thursday.

Dollar loses recovery momentum, eyes on PMIs

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Dollar loses recovery momentum, eyes on PMIs

The Dollar Index (DXY) entered a consolidation phase after reaching a weekly high near 105.00.

On This Day: Leading Nazi Heinrich Himmler committed suicide in 1945

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On This Day: Leading Nazi Heinrich Himmler committed suicide in 1945

On May 23, 1934, notorious American outlaws Bonnie Parker and Clyde Barrow were killed in a shootout with police.

Janet Yellen says America won’t back a billionaire tax

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Janet Yellen says America won't back a billionaire tax

World leaders are considering a global tax on the world’s richest people, but the U.S. does not support the idea.

Other View: Biden tax plan would pummel average Americans

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Other View: Biden tax plan would pummel average Americans

President Joe Biden’s 2025 budget blueprint includes plans to increase corporate taxes, which could ultimately cost low- and middle-income Americans more money than if their income tax rates were raised. The budget calls for record spending, soaring debt, and trillion-dollar deficits, despite promises not to increase taxes on those earning less than 0,000 a year. The plan is similar to Sen. Bernie Sanders’ approach and aims to target corporations, but economists argue that corporations pass on tax costs to consumers, impacting employees and investors, including those with pension plans and retirement accounts. Republicans may use these economic realities in the upcoming campaign.

New vehicle sales decline 17pc on high taxes, interest rates

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New vehicle sales decline 17pc on high taxes, interest rates

Sales of new vehicles in Kenya fell 17.66 percent in the first quarter of 2024, the sharpest drop in seven years. This decline was attributed to increased taxation, rising interest rates, and a weakened shilling. Dealers such as Isuzu, CFAO, and Simba Corporation have been struggling in a tough operating environment, with climbing interest rates and pending bills affecting demand. The Kenya Revenue Authority also increased duty on shipping cars into the country, further impacting sales. Isuzu East Africa and CFAO Motors Kenya, which control a significant portion of new vehicle sales, experienced declines in sales, while Simba Corp saw a modest increase. The falling demand for vehicles has also affected government revenues.

A Global Tax on Billionaires? Janet Yellen Says ‘No’

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A Global Tax on Billionaires? Janet Yellen Says ‘No’

The U.S. opposes a proposed global wealth tax on billionaires, as Treasury secretary Janet Yellen stated that the country does not support the idea of a common global arrangement for taxing billionaires and redistributing the proceeds.

Why We’re Closely Watching Moore v. U.S.

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Why We’re Closely Watching Moore v. U.S.

The Moore v. United States case involves the question of “unrealized income” and its taxation. The plaintiffs, Charles and Kathleen Moore, are challenging the constitutionality of the Section 965 transition tax. The Supreme Court is expected to release an opinion soon, which could have significant impacts on tax policy, potentially reducing federal tax revenues. The ruling may also affect the implementation of the global minimum tax agreement known as Pillar Two. Additionally, the case could lead to changes in the timing of taxes and even preemptively strike down some wealth tax proposals.

Former CEO of Fatburger parent company charged in $47 million tax-evasion scheme

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Former CEO of Fatburger parent company charged in $47 million tax-evasion scheme

Former Fat Brands CEO Andrew Wiederhorn has been indicted for allegedly avoiding paying taxes through a scheme involving million in shareholder loans that were never repaid and reported as losses.