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The State Bank of India (<keyword id="19898108" type="General" weightage="20" keywordseo="sbi" source="keywords">SBI</keyword>) in its latest report has asked for <keyword id="20213295" type="General" weightage="20" keywordseo="tax-reforms" source="keywords">tax reforms</keyword> after concerns were flagged over the recent decline in <keyword id="20202062" type="General" weightage="100" keywordseo="bank-deposits" source="keywords">bank deposits</keyword>. The report says tax Reforms for Deposits can accentuate the banking system's stability and resilience to the next level. SBI attributed the fall in deposits to the varied rates of return offered by different <keyword id="20139443" type="General" weightage="20" keywordseo="investment-options" source="keywords">investment options</keyword> for similar time frames and different tax rates on <keyword id="22837794" type="General" weightage="20" keywordseo="returns-on-deposits" source="keywords">returns on deposits</keyword>. The <keyword id="20352499" type="General" weightage="20" keywordseo="SBI-report" source="keywords">SBI report</keyword> said that "<keyword id="20658792" type="General" weightage="20" keywordseo="tax-treatment" source="keywords">Tax treatment</keyword> of bank and non-bank channels are non-uniform, even as bank deposits have a wider and denser pass-through effect across the populace sensitivity of Deposits on Tax is as much as 7 per cent" The report noted that a bank deposit of Rs 10 lac in a Savings Bank (SB) account at an investment return of 3 per cent would generate Rs 30,000 in returns and after accounting for taxes and exemptions, the <keyword id="22837795" type="General" weightage="20" keywordseo="net-return" source="keywords">net return</keyword> would be Rs 16,000. The report adds that the net returns vary significantly if deposits are made in different instruments like <keyword id="21041176" type="General" weightage="20" keywordseo="term-deposits" source="keywords">term deposits</keyword>, short and long-term investments in debt funds, liquid funds or bonds. The tax rates on these deposits also favour saving banks or term deposits. The report illustrates a term deposit of up to one year with the same principal amount of Rs 10 lac at a yield of 6.25 per cent would result in a net return of Rs 50,000 after taxes. But for term deposits exceeding one year the interest rate is higher and with an interest rate of 7.25 per cent, the gross return would be Rs 72,500. After taxes, the net return would be Rs 58,000. The data highlights that similar type of investments for the same period generates significantly different returns because of different tax treatment by the government. Similar variations are observed in other <keyword id="20105084" type="General" weightage="20" keywordseo="investment-plans" source="keywords">investment plans</keyword> as well. For instance, investments in equity and mutual funds with a 2 per cent dividend income of Rs 10,00,000 generate Rs 20,000, which after taxes the net return is Rs 16,000. However, Short-term investments of less than one year in equity and mutual funds, offering an 11 per cent return generate Rs 1,10,000, with a net return of Rs 88,000 after taxes. This investment if made in Long-term investments of more than one year the return increases to 15% on Rs 10,00,000 and generates Rs 1,50,000 annually. With a lower tax bracket of 12.5 per cent tax on long-term investments and applicable exemptions, the net return is Rs 1,43,750. These variations in returns across different deposits and investment options highlight the complexity and thus investors are choosing the higher return options over the bank deposits which in turn poses a threat to the deposit growth in the banking sector.

Decline in bank deposits because of non-uniform tax treatment on various investment options: SBI report

<ul class="summary-list"><li>Interest in moving to Canada has spiked among Americans after the election.</li><li>Beyond the physical move, there are financial considerations that potential movers should know of.</li></ul>The result of the 2024 elections left about half of the US displeased. As Donald Trump prepared to return to the White House, many Americans began considering a move up north, according to <a target="_blank" href="https://trends.google.com/trends/explore?date=today%201-m&amp;geo=US&amp;q=moving%20to%20canada&amp;hl=en-US">Google search traffic</a> at least.Interest in <a target="_blank" class="" href="https://www.businessinsider.com/we-moved-to-canada-not-perfect-but-prefer-over-us-2024-11">moving to Canada</a> tends to spike after big political events such as the <a target="_blank" href="https://trends.google.com/trends/explore?date=2016-11-01%202016-11-30&amp;geo=US&amp;q=moving%20to%20canada&amp;hl=en-US">2016 election</a> and the <a target="_blank" href="https://trends.google.com/trends/explore?date=2022-06-01%202022-06-30&amp;geo=US&amp;q=moving%20to%20canada&amp;hl=en-US">overturning of the Roe v. Wade</a> Supreme Court ruling.This phenomenon doesn't just live on the internet, either — some US residents are seriously considering the move."Even when Trump was elected last time, a lot of people felt that they weren't as comfortable staying in the States, and so we actually did see an influx of people moving to Canada," said Tiffany Woodfield, a senior financial advisor at SWAN Wealth Management of Raymond James.Moving, especially across borders, is a big decision and shouldn't be taken lightly. While the physical act of moving is complicated enough, Woodfield points out that there are a lot of financial considerations to be aware of."I think sometimes it can be a knee-jerk reaction," Woodfield said of <a target="_blank" class="" href="https://www.businessinsider.com/we-moved-to-canada-not-perfect-but-prefer-over-us-2024-11">moving to Canada</a>. "If they don't plan ahead of time, they can fall into traps that end up costing them money."<h2 id="c4feab40-7084-4563-951b-72a890ad2b58">You need to file US and Canadian taxes</h2>US citizens residing in Canada might not realize that even on the other side of the border, they're still not free from their tax obligations to Uncle Sam.If you are a US citizen, you still need to file federal US taxes and report your worldwide income to the IRS no matter where you live. In Canada, taxes are based on your residency status, so if you spend more than 183 days of the year living in Canada, you owe the Canadian government taxes.To prevent ex-pats from getting taxed twice on their income, the US and Canada have a tax treaty that provides a foreign income tax credit for any income tax paid to the other country, Woodfield explained. That means you can offset your US tax liability with taxes already paid to Canada, but you still need to file two separate tax returns — one to Canada and one to the US — to receive a tax credit.Additionally, the promise of free healthcare in Canada might sound enticing, but that does come at the cost of higher taxes, so be aware that your Canadian tax bill will probably be higher than what you paid in the US. You also don't have the option to file joint income tax returns with your spouse in Canada, Woodfield warned.<h2 id="7d31b42f-84db-43c3-b2f8-4f871c9958bf">Some Canadian investments have complicated tax implications</h2>"As a US person living in Canada, you don't want to invest in Canadian mutual funds or Canadian ETFs," Woodfield said. That's because these investments are considered Passive Foreign Income Corporations (PFIC) by the US government.PFICs are subject to unfavorable tax treatment from the IRS. The associated tax forms are lengthy and complicated, and you may end up paying high tax rates. If you're still a US citizen, investing in a Canadian mutual fund or ETF simply isn't worth the hassle.<h2 id="0333acc5-88aa-436b-bf74-7cb1b79b71b0">Bringing your retirement plan over the border can be tricky.</h2>401(k)s are a popular way to save for retirement here in the US, but Canadian employers offer a different type of retirement plan: the Registered Retirement Savings Plan (RRSP).Once you move to Canada, you won't be able to actively manage the holdings in your 401(k), according to Woodfield. One workaround is to roll your 401(k) to an IRA and have it managed in Canada. US citizens should also be aware that, in most cases, they won't be able to contribute to their IRA once they move to Canada.Another option is to transfer your US retirement account into an RRSP. However, if you choose this step, make sure you're committed to moving to Canada permanently, as you cannot move RRSPs to IRAs, Woodfield said.You may not be able to bring your brokerage accounts over the border, either. Some people don't realize this until they update their address with their US brokerage account after moving and receive a letter informing them that they have to close out their account.<h2 id="2d468c1f-efc0-45a8-9a7c-53c03c550ff1">You'll need a new financial advisor…and a lot of time</h2>US financial advisors are prohibited by law from providing Canadian residents with financial advice, as they aren't licensed in Canada. If you want expert advice, you need to work with a dual Canada / US licensed advisor.The earlier you start preparing for your cross-border move, the better — ideally, one to two tax years before moving, Woodfield said. That way, you can plan certain taxable events ahead of time and realize the greatest amount of savings, such as liquidating mutual funds. It's also easier to sell your home while you're still in the US, Woodfield said.If you've already begun the moving process or you're already in Canada, don't panic. Woodfield has worked with plenty of people after they've already moved, but the more time you give yourself, the better.Moving across the border is no simple feat, so make sure you're confident about your choice."I've had clients that have moved, and then after the fact, they think, 'Oh, I shouldn't have done this,'" Woodfield said."It's very hard to go back, so people need to be aware of that."

Americans moving to Canada should be aware of these 4 tax and investment implications

<ul class="summary-list"><li>Some older Americans are sacrificing their life savings to pay for medical treatment.</li><li>It means they can't retire and are struggling to pay their bills or afford groceries.</li></ul>Kimberly Mullen, 61, is couch surfing.She drained her bank accounts paying out of pocket for <a target="_blank" class="" href="https://www.businessinsider.com/4-surprising-medical-costs-how-to-avoid-2023-4">cancer treatments</a> for two years, waiting for <a target="_blank" class="" href="https://www.businessinsider.com/poverty-line-leaves-behind-low-income-americans-snap-medicare-wic-2024-6">Medicare</a> to kick in. Plus, her mother had cancer at the same time."She didn't survive, but I did," Mullen said. "But it cost us our home and all of our life savings and everything — I'd say right around $400,000 between the two of us."Mullen now makes <a target="_blank" class="" href="https://www.businessinsider.com/jobs-labor-market-federal-minimum-wage-raise-small-business-2024-8">$10 an hour</a> cooking part-time at a truck stop in rural Kentucky. She drove trucks for 38 years before her diagnosis and would like to get back on the road, but she'll have to pay for more training. She can't afford a home, and she needs a local address to qualify for affordable housing. She's worried she'll have to work until the <a target="_blank" class="" href="https://www.businessinsider.com/retirement-crisis-social-security-pensions-student-loan-debt-2024-3">day she dies</a>.It's a story all too familiar for <a target="_blank" class="" href="https://www.businessinsider.com/boomer-retirement-social-security-insurance-cancer-diagnosis-2024-7">some older Americans</a>: An unexpected health crisis derails their retirement planning. With insufficient help from health insurance or Social Security, medical bills eat up any savings or income they have."People who are very wealthy, their savings are basically self-insurance," Nancy Altman, the president of advocacy group Social Security Works, told Business Insider. "Healthcare costs in this country are higher than anywhere else in the world, and we pay more for healthcare."Americans over 65 often have two options for health insurance: private market or Medicare. The former is too expensive for many, and the latter can come with high out-of-pocket costs.It's another example of how the retirement crisis is playing out among America's older residents — and a sobering warning for younger workers as retirement savings gaps widen and <a target="_blank" href="https://www.businessinsider.com/rise-in-cancer-among-young-people-under-age-50-charts-2024-3">cancer rates rise</a>.<div type="image" title="A collection of pills on a kitchen sink" height="1601" width="2400" msid="113365910" hostid="261" sizebytes="296448"></div>The American Cancer Society estimates over 2 million new cancer diagnoses and about 600,000 cancer deaths this year in the US, though the cancer mortality rate has fallen since 1991. About 40% of people with a cancer diagnosis deplete their life savings within the first two years, while cancer survivors are 2.7 times more likely to file bankruptcy. This particularly impacts older adults, who are more prone to many cancers and are often ineligible for clinical trials.Plus, Dr. Karen Knudsen, CEO of the American Cancer Society, told BI that financial limitations can hamstring a patient's recovery. "What is very common is either skipping doses for cancer therapy or halving their doses so they can extend the time which their current prescription will allow them to stay on the drug or therapy."Dozens of older Americans told BI in recent months that their <a target="_blank" class="" href="https://www.businessinsider.com/retirement-savings-social-security-baby-boomers-without-savings-401k-poverty-2024-8">Social Security and pensions</a> aren't enough to get by without working. Some said they have to rely only on Social Security due to health issues, while others said they've taken jobs at Walmart, a hospital, or with Uber to supplement government assistance.For this story, BI spoke to 10 older Americans with health issues. Most of them said they're scraping by due in part to high medical costs. Many have sacrificed vacations, home repairs, or even medical appointments to make ends meet."It could happen to anybody overnight," Mullen said. "Your life could be turned upside down in a split second because you never know if you're going to get sick or you're going to get hurt."<h2 id="63019a77-b62f-410c-bf98-e7708cfc85dc">Medicare doesn't cover it all</h2><div type="image" title="A woman aids her husband by applying a bandange" height="1601" width="2400" msid="113365912" hostid="261" sizebytes="192696"></div>Wendy Jones, 71, is a mother of four who has dealt with various forms of cancer since 2005. For over a decade, she was the family's breadwinner, earning between $70,000 and $90,000 yearly as a paralegal while being a caretaker to her husband, who was injured in 1992 in a workplace accident.When she was diagnosed, finances became a major struggle. Even with insurance, medical payments were hundreds of thousands of dollars each month. Surgeries, ambulance costs, medications, and other emergency expenses have eaten away at their 401(k)s and savings. Recently, they lost their Medicare Part B — she suspects it's because she put money her mom gave her into a savings account, putting her assets over the eligibility threshold. Now she's struggling to afford groceries and essentials.Jones, who gets $2,200 a month in Social Security, has had to take on part-time work, which made her ineligible for some federal assistance."It's a catch-22: People say, just get a job, but I tried that, and everything else was taken away from me," Jones said, noting she will work as long as she can drive, walk, and answer phones. "I didn't get ahead. I wasn't able to save or progress in any way whatsoever."Retirement expert and researcher Teresa Ghilarducci, who chairs the economics department at the New School for Social Research and directs the Schwartz Center for Economic Policy Analysis, said that Medicare is leaving retirees who aren't in poverty but still aren't staying afloat in a tight bind."If you are in the top 10%, your own wealth can take care of those long-term care needs, but it's the middle that is having to go without the care they need or exhausting all forms of wealth or home equity or going into debt to pay for it," Ghilarducci said.An <a target="_blank" href="https://www.kff.org/medicare/issue-brief/medicare-households-spend-more-on-health-care-than-other-households/">analysis</a> from the Kaiser Family Foundation found that, in 2022, Medicare households spent $7,000 on healthcare; non-Medicare households spent just $4,900. Healthcare spending also made up a greater share of Medicare households' spending.That was the case for Rebecca Buffum, 74.Buffum, who works in healthcare, had expected retirement to be a smooth, easy transition. But a cancer diagnosis and multiple years of treatment bulldozed through those plans.She paid for chemo out of pocket, spending her way through her retirement savings and maxing out her credit cards. She racked up what she estimated was around a million dollars in medical bills and ended up declaring bankruptcy.Though she's in remission, she'll have to keep working. Her Social Security covers her mortgage and not much else."I am blessed that, number one, I'm still alive, and number two, that I have the capacity to work," she said. "It's a double-edged sword."<div type="image" title="Rebecca Buffum takes a moment to reflect." height="1600" width="2400" msid="113365906" hostid="261" sizebytes="90784"></div><h2 id="466afe2c-413a-43ac-ac0e-c84fdbdc0379">Making sacrifices and setting a strict grocery budget</h2>Health issues lead some older Americans to skip medical appointments, sacrifice the quality of their diets, and quit their jobs entirely. It means that their illnesses are taking more than their health — the fabric of their lives is changed entirely, leaving many lonely and without the creature comforts that can make life enjoyable.That's a far cry from the vision of retirement many had — and it shows the very real impact of the cracks that some of America's seniors fall into. They might spend their lives living middle-class, only to slide into poverty in their old age.When Marion, 70, quit her job in restaurant management due to health issues, she cashed out her 401(k) early and moved in with her sister and her sister's boyfriend to save money.To supplement the $1,200 in disability she received a month, she started cleaning houses and selling her art.Like many baby boomers BI spoke with, Marion cut back on discretionary spending like vacations, dining out, cosmetic treatments, and new clothes purchases. Others have drastically reduced spending on necessities like healthy food.Robert Papalia, 74, has capped grocery spending for himself and his wife at under $100 a week, rotating through 30 credit cards to afford all their health and housing repair bills. He retired early in 2010 because of his wife's health issues, living on his company's pension and Social Security but struggling to afford medical bills and high property taxes."Do we have money in the bank? Yes. Is it a lot of money? No," Papalia said. "I look at my wallet at the end of the day, and it's a difference between night and day."Leonard Bianconi, 67, can't afford to go out to eat or buy many groceries on his SNAP benefits, so he relies on food pantries. He finds fruits and vegetables often on the precipice of going bad — a major challenge for Bianconi, who's diabetic and needs a fresh diet."Right now, I have no extra money to do anything. My life is pretty lonely. I don't have any money to go anywhere. I can't really do things. Even going to the cinema would be difficult," Bianconi said.<h2 id="299e0d51-1dc1-4501-bd31-4b0cf5476ce9">Feeling grateful and clinging to hope</h2><div type="image" title="Wendy Jones smiles at her husband while he sits on the bed" height="1601" width="2400" msid="113365904" hostid="261" sizebytes="324060"></div>Many of the older Americans who spoke to BI said they're remaining as positive as they can about their futures, with some expecting their conditions to improve.In fact, Gallup found three in four retired Americans think they have enough to live comfortably, even though 45% of non-retirees anticipated coming up short by the time they retire. About 58% of retired Americans noted Social Security is a "major source" of income in their retirement, compared to the 35% of non-retirees who expect Social Security to be a large portion.Monique Morrissey, a senior economist at the left-leaning Economic Policy Institute, said that while more ambitious proposals to reform long-term care haven't passed, the Biden-Harris administration has still <a target="_blank" class="" href="https://businessinsider.com/medicare-drug-price-negotiations-part-d-biden-pharmaceutical-companies-2023-10">made a dent</a> in other pressing issues."In a much more limited way, they have done a lot," Morrissey said, pointing to the administration's success in <a target="_blank" class="" href="https://www.businessinsider.com/bidens-state-of-the-union-abortion-access-prescription-drug-cost-2024-3">lowering prescription drug costs</a>. "There are some things that they've sort of been patching when they can, when they can get Republicans to go along with it, but there are other big gaps in our patchwork system that still need to be addressed."Frank Amend, 63, was working as an engineer and marketing manager when he experienced chest pain two decades ago. Weeks later, he underwent a heart catheterization procedure, followed three years later by a triple bypass.His insurance covered most of his expenses, though he still took a hit. He recovered fast, and he returned to work in 2006. He said he "works for my healthcare" and acknowledged he's "one of the fortunate ones who can retire at 65."Amend recalled standing behind a man who broke down in tears at the pharmacy when he heard his wife's prescriptions would cost $700. From that moment, he knew he wanted to get involved in advocacy work, collaborating with the American Heart Association to assist survivors struggling with medical bills. He helped pass a bill in North Carolina banning smoking in all bars and restaurants, and he's spoken at presidential healthcare task force meetings.Amend said it's crucial for older Americans to believe everything will be OK, noting "your mindset perpetuates what your outcome will be." Still, he said he's playing a small but important part in working toward healthcare equality, given many medications still charge sky-high prices and many Americans are uninsured."The people working two or three jobs to try to put a roof over their family's head and food on the table, they can't afford healthcare," Amend said. "Thank God for Obamacare, but in some cases, it just doesn't cover it."<div type="image" title="Roy speaks to his pet African Gray" height="1800" width="2400" msid="113365915" hostid="261" sizebytes="490476"></div>

Some baby boomers are burning through their retirement savings to pay for cancer treatments. Then they have to go back to work.

<ul class="summary-list"><li>There are four strategies investors can adopt to manage tax liabilities, regardless of who wins the 2024 election, according to UBS.</li><li>The firm says investors should diversify their tax statements and defer capital gains for as long as they can.</li></ul>Depending on who is sitting in the Oval Office for the next presidential term, fiscal policy is going to look pretty different, UBS said. But whether Donald Trump or Joe Biden wins, Americans can take steps now to shore up their tax strategies."Regardless of whom voters decide to return to office, the accumulated federal deficit is likely to serve as an ever larger constraint on future fiscal policy," UBS analysts wrote in a note. "As interest rates have risen, it has become progressively more expensive to finance the federal deficit."According to the analysts, there are four strategies investors can adopt to manage tax liabilities, regardless of who wins the 2024 general election.First, investors can (1) diversify their tax treatments. That means distributing wealth across various accounts subject to different rules, like taxable ones, tax-deferred, or tax exempt, UBS said. Doing so will give investors more leeway by being able to choose which retirement fund to withdraw from depending on which is one is more tax-efficient in that year.Second, investors should (2) defer capital gains for as long as they can, the analysts wrote. Instead of trying to cash in on investments and paying taxes on them today, investors could benefit from holding onto those investments which will make more money and face a smaller capital gains tax rate increase in the future.Another strategy is (3) accelerating lifetime gifting. There is a certain amount of money you can give away tax-free, but that lifetime gift and estate tax exemption looks like it's going to be reduced, analysts said. So it's better to give away the money you want to parcel up sooner rather than later so you can avoid paying higher taxes on it.Finally, investors can (4) get moving on estate planning. After the election results roll in, trust and estate lawyers will face a deluge of families seeking estate planning advice. That means investors will benefit from being proactive and getting started earlier, ensuring they have access to key resources beforehand, UBS said.

4 tax strategies for investors, regardless of who wins the presidency, according to UBS

<ul class="summary-list"><li>Countries are exploring innovative strategies to combat declining birth rates.</li><li>Cash incentives, medals, and even car subsidies are among the measures being adopted.</li></ul>As <a target="_blank" href="https://www.businessinsider.com/world-faces-a-low-fertility-future-hit-global-economy-report-2024-3">fertility rates decline across much of the world</a>, countries are exploring innovative strategies to encourage women to have more babies.Several demography experts told Business Insider that these involved lump sums of money, gold medals, and even tax breaks.But none will be enough to solve the problem alone, they said.<h2 id="c639d815-9fff-43bc-b7e5-dfb3191bbb61">Baby bonuses</h2>Several countries have introduced so-called <a target="_blank" href="https://www.businessinsider.com/what-are-baby-bonds-money-at-birth-pressley-booker-treasury-2023-3">baby bonuses</a> to combat declining fertility rates.During the COVID-19 pandemic, Singapore offered one-time payments, and the "<a target="_blank" href="https://www.madeforfamilies.gov.sg/support-measures/raising-your-child/financial-support/baby-bonus-scheme">Baby Bonus Scheme</a>" continues to provide cash incentives for Singaporean couples having children.South Korea, which has the world's lowest fertility rate, runs an <a target="_blank" href="https://www.businessinsider.com/new-parents-south-korea-seoul-750-per-month-population-declines-2024-2">allowance system</a> that gives parents with <a target="_blank" rel=" nofollow" href="https://www.mohw.go.kr/board.es?mid=a10503000000&amp;bid=0027&amp;act=view&amp;list_no=1479667&amp;tag=&amp;nPage=1">a newborn $750 a month</a> until their baby turns 1 year old.According to Bloomberg, the country is even considering <a target="_blank" href="https://www.bloomberg.com/opinion/articles/2024-05-15/south-korea-fertility-crisis-could-public-subsidies-solve-it?embedded-checkout=true">a proposal to pay families about $70,000</a> to have children.Local Chinese governments, meanwhile, offer <a target="_blank" href="https://www.globaltimes.cn/page/202405/1312184.shtml#:~:text=Several%20regions%20across%20China%20have,associated%20with%20raising%20a%20family.">one-time subsidies, often worth thousands of dollars</a>, to encourage parents to have two or more children.However, experts say that financial incentives alone are not a long-term solution.Sarah Harper, a professor of gerontology and the director of the Oxford Institute of Population Ageing, told BI that cash incentives encouraged a "mini baby boom, followed by a baby crash."She added: "Those women who would have spread their childbearing across several years all go at the same time to get the cash bonus, and then there is a lull in childbearing."<h2 id="409e6f62-d8f9-48de-87b5-cf1eb6507b03">Gold medals, tax breaks, and car subsidies</h2>Other financial incentives include Kazakhstan's prize system for mothers with many children, inspired by the "mother heroine" honorary title from the Soviet era.<a target="_blank" href="https://www.bbc.co.uk/reel/video/p07r9zg7/the-country-where-mothers-win-medals-for-having-more-kids">BBC WorkLife reported</a> that mothers in the country received silver medals for six children, gold medals for seven or more, and a financial allowance for the rest of their lives.In 2022, Russian President Vladimir Putin <a target="_blank" href="https://www.cnbc.com/2022/08/18/russia-offers-mother-heroine-medal-and-16800-for-having-10-children.html">introduced a similar program</a>, offering a title and a lump sum of about $17,000 to Russian citizens with 10 or more children.Hungarian Prime Minister Viktor Orbán has also focused on boosting the fertility rate with financial perks.<div type="image" title="Hungarian Prime Minister Viktor Orbán gives a speech on a stage during Budapest's 2021 Demographic Summit." height="683" width="1024" msid="110972133" hostid="261"></div>Women in Hungary who <a target="_blank" href="https://www.businessinsider.com/hungary-income-tax-new-moms-encourage-women-children-birth-rates-2023-1">become mothers under 30</a> or have four or more children receive <a target="_blank" href="https://apnews.com/general-news-fa782634d725431390c3251f1b5e352a">a lifelong exemption from paying personal income tax</a>.Meanwhile, Hungarian families with three or more children receive subsidies for purchasing seven-seater cars, <a target="_blank" href="https://apnews.com/general-news-fa782634d725431390c3251f1b5e352a">The Associated Press reported</a>, and parents get <a target="_blank" href="https://kurier.plus/en/node/4692">loan deductions</a> on their homes based on the number of children they have.Trent MacNamara, a Texas A&amp;M professor whose work has focused on fertility rates, told BI that the impact of financial incentives on fertility rates was uncertain and might lead to only modest gains."For example, if a government transferred new parents about 5% of the costs of raising a child, we could expect a roughly 5% bump in fertility," he said.<h2 id="000c163b-b206-427d-be40-dc514c5124a6">Generous leave and flexible working conditions</h2>Financial incentives often have an underlying assumption that the cost of parenting is the main reason behind declining fertility rates.However, Poh Lin Tan, an assistant professor at the National University of Singapore, told BI that "an amalgam of factors" pushes people to have fewer children.In Singapore, these factors include people spending more time in education, changes to traditional family dynamics, and the conflict between building a family and a career, she said.In 2023, Singapore attempted to address some underlying factors by <a target="_blank" href="https://muse.insider.com/story/66630b82b38735ca9de564c0#:~:text=https%3A//www.pinsentmasons.com/out%2Dlaw/news/singapore%2Dlaunches%2Dfamily%2Dsupportive%2Dpolicies%2Dand%2Dcost%2Dof%2Dliving%2Dmeasures">doubling paid paternity leave</a> to four weeks and increasing unpaid infant-care leave from six to 12 days annually for a child's first two years.Scandinavian countries have gone even further.Norway <a target="_blank" href="https://ec.europa.eu/social/main.jsp?catId=1123&amp;intPageId=4704&amp;langId=en#:~:text=The%20parental%20benefit%20period%20is,same%20way%20as%20sickness%20benefit.">provides 49 weeks of parental leave with full pay</a>, Finland offers <a target="_blank" href="https://www.infofinland.fi/en/work-and-enterprise/during-employment/holidays-and-leaves">seven months to each parent</a>, and Sweden provides <a target="_blank" href="https://sweden.se/work-business/working-in-sweden/work-life-balance#:~:text=The%20Swedish%20parental%20insurance%20entitles,reserved%20exclusively%20for%20him%2Fher.">240 days per parent of leave</a>.But Philip N. Cohen, a family demographer at the University of Maryland, told BI that these policies often have unintended effects.He said that in some circumstances, parents don't end up having more kids; instead, they use generous leave provisions like paid time off and universal childcare to space out having fewer children so they benefit more.<h2 id="39089702-3112-4090-af8f-84a12976b236">Subsidized fertility treatments and vasectomy reversals</h2>Cohen said that other strategies to increase fertility rates included countries like Israel offering free or <a target="_blank" href="https://www.businessinsider.com/work-starbucks-for-the-ivf-benefits-take-home-zero-dollars-2022-2">heavily subsidized in vitro fertilization</a>.According to the <a target="_blank" href="https://www.aeaweb.org/research/ivf-marriage-market-israel">American Economic Association</a>, this may have also had an unintended consequence — leading Jewish Israeli women to delay getting married and having kids.<div type="image" title="IVF process close-up" height="1414" width="2121" msid="110971986" hostid="261"></div>Hungary also offers free IVF as part of its pronatalist policies, and Singapore and Japan offer significant subsidies.However, a <a target="_blank" href="https://www.imf.org/en/Publications/fandd/issues/2020/03/lessons-from-singapore-on-raising-fertility-rates-tan">2020 essay</a> by Tan said the Japanese example showed that reproductive technologies were not a panacea for low fertility rates.Japan has the world's highest percentage of babies born through IVF, yet it has <a target="_blank" href="https://www.businessinsider.com/tokyo-government-launching-dating-app-marriage-rates-population-decline-japan-2024-6#:~:text=On%20Wednesday%2C%20data%20released%20by,the%20numbers%20are%20even%20worse.">one of the lowest fertility rates</a>, she said.South Korea also covers the costs of various reproductive-technology treatments, such as egg freezing.More recently, Seoul's government made headlines with a proposal <a target="_blank" href="https://www.businessinsider.com/south-korea-pay-reverse-vasectomy-tubal-ligation-birth-rates-low-2024-5#:~:text=Business%20Insider's%20Matthew%20Loh%20reported,to%20address%20ailing%20birth%20rates.">offering up to $730 each to 100 people to reverse their vasectomies</a> or untie their tubes.<h2 id="7fc3cc7f-e4d0-49a8-9874-6ad137873e35">No magic bullet</h2>Experts agreed that there's no easy solution to the fertility crisis."No government has discovered a policy that produces sustained bumps in fertility," MacNamara told BI, adding: "Plenty of bright people in wealthy countries have spent decades trying to figure this out without evident success."He said that young people increasingly saw small families as the norm, which is a "really tough cycle to break."Even if a "magic formula" were to be discovered, he added, it would need to be implemented carefully to avoid then promoting unsustainable population growth."Rapid growth would make it harder to scale back our present overconsumption of resources, including fossil fuels," he said.

Falling birth rates are freaking countries out and spawning dubious fixes like tax breaks, cheaper cars, and free surgery

<ul class="summary-list"><li>Amazon founder <keyword id="11908741" type="UNKNOWN" weightage="60" keywordseo="jeff-bezos" source="Orion">Jeff Bezos</keyword> has been feuding with the White House over the causes of <keyword id="11894140" type="UNKNOWN" weightage="60" keywordseo="inflation" source="Orion">inflation</keyword>.</li><li>Sen. <keyword id="11984291" type="UNKNOWN" weightage="60" keywordseo="elizabeth-warren" source="Orion">Elizabeth Warren</keyword> stepped into the fray on Tuesday, saying he's a "thin-skinned billionaire."</li></ul>Sen. Elizabeth Warren of Massachusetts lambasted Amazon founder Jeff Bezos as he kept up a days-long feud with the White House over social spending and inflation.Warren on Tuesday wrote on <a href="https://twitter.com/SenWarren/status/1526567459767164929">Twitter</a> that Bezos is a "thin-skinned billionaire" who is lashing out to distract from Amazon's "shameful treatment of workers and its massive tax avoidance."It comes after <a href="https://www.businessinsider.com/jeff-bezos-steps-up-feud-white-house-bbb-inflation-2022-5">Bezos feuded</a> with the White House over the size and scope of their economic agenda, once known as the Build Back Better plan. The billionaire attacked the Biden administration over the weekend for pushing an expansive social spending and climate bill on the heels of a large stimulus law. He argued the Build Back Better bill would worsen inflation and push prices up."They know inflation hurts the neediest the most," he wrote in a Tuesday tweet.The Biden administration <a href="https://www.businessinsider.com/joe-biden-jeff-bezos-tweets-political-enemy-inflation-amazon-2022-5">assailed Bezos</a>, saying it "wasn't a surprise" he opposed a measure that included taxes on the richest people like him. That package was meant to level the playing field in the US <keyword id="11893570" type="UNKNOWN" weightage="100" keywordseo="economy" source="Orion">economy</keyword> with new spending on childcare and healthcare. They also said it would be fully paid for with tax hikes on the super-rich, thus diminishing its potential to fuel inflation.Bezos is not a new sparring partner for Warren, who has <a href="https://www.businessinsider.com/elizabeth-warren-calls-out-jeff-bezos-cnbc-wealth-tax-2021-7">previously taken aim</a> at him in myriad calls for a wealth tax — and criticized how little both he and Amazon <a href="https://www.businessinsider.com/elizabeth-warren-calls-out-jeff-bezos-cnbc-wealth-tax-2021-7">currently pay</a>.A bombshell 2021 report from ProPublica <a href="https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-income-tax">found</a> that Bezos reportedly did not <a href="https://www.businessinsider.com/jeff-bezos-did-not-pay-income-taxes-2-years-report-2021-6">pay income taxes for two years</a>, and even <a href="https://www.businessinsider.com/jeff-bezos-claimed-tax-credit-for-children-propublica-2021-6">reportedly received a tax credit</a> for families who make under $100,00 in 2011. Amazon also <a href="https://www.businessinsider.com/heres-how-amazon-uses-stock-options-to-cut-its-tax-bill-2019-12">paid nothing</a> in federal income taxes in both 2018 and 2017. When touting her <a href="https://www.businessinsider.com/democrats-propose-ultra-millionaire-tax-on-wealthiest-americans-2021-3">Ultra-Millionaire Tax Ac</a>t, which would put a 2% tax on households with a net worth of $50 million to $1 billion, and a 3% tax on households with a net worth over $1 billion, Warren specifically <a href="https://www.businessinsider.com/elizabeth-warren-calls-out-jeff-bezos-cnbc-wealth-tax-2021-7">homed in</a> on Bezos."Jeff Bezos, I'm looking at you," she <a href="https://www.cnbc.com/2021/07/28/elizabeth-warren-targets-jeff-bezos-in-wealth-tax-push.html">told CNBC's Squawk Box</a>.And, as Bezos prepared to blast off into space last summer, Warren <a href="https://www.businessinsider.com/elizabeth-warren-slams-jeff-bezos-over-space-flight-taxes-2021-6">told</a> <a href="https://www.tmz.com/2021/06/10/elizabeth-warren-rips-jeff-bezos-trip-space-blue-origin-taxes/">TMZ</a> that he was "laughing at every person in America who actually paid taxes.""Jeff Bezos' trip to outer space is being financed by all the rest of the US taxpayers who paid their taxes so that Jeff Bezos didn't have to," she said.

Elizabeth Warren says Jeff Bezos is a 'thin-skinned' billionaire trying to distract from tax avoidance and poor treatment of workers

<ul class="summary-list"><li>Hunter Biden agreed to plead guilty to two criminal charges for failing to pay taxes.</li><li>The Justice Department also brought a firearm possession charge against Joe Biden's son.</li></ul>Hunter Biden is expected to plead guilty in a criminal gun and tax case in a deal with the Justice Department.In a court filing Tuesday, prosecutors in the US Attorney's office in Delaware said the son of President Joe Biden has agreed to plead guilty to two criminal counts for failing to pay income tax.Prosecutors also brought a charge against Hunter Biden for being in possession of a firearm by a person who is an unlawful user of or addicted to a controlled substance. According to the filing, Biden agreed to enter a pretrial diversion program for that charge, meaning that prosecutors reserve the right to dismiss it at a later date if Biden seeks treatment.It isn't yet clear when Biden will be required to show up in court to enter his guilty plea. Any plea deal would also have to be approved by a federal judge in Delaware, where the case was brought.The gun charge, if prosecutors decide to bring it to trial, carries a penalty of up to 10 years in prison, according to a filing. Biden held on to a Colt Cobra 38SPL revolver for less than two weeks before his then-girlfriend threw it away, <a href="https://www.washingtonpost.com/national-security/2023/06/20/hunter-biden-plea-deal/">according to the Washington Post</a>.Hunter Biden has openly discussed his substance abuse, a struggle that was put in vivid detail after some news outlets published photos and emails from his laptop. <a href="https://www.nytimes.com/2021/03/30/books/hunter-biden-beautiful-things-memoir.html" target="_blank" rel="noopener">In his 2021 memoir</a>, Biden wrote at length about using crack and the various ways he tried to scheme around drug tests while he was using — these admissions in the memoir helped fuel the gun charge that Biden ended up facing.David Weiss, the US Attorney in Delaware, opened the investigation in 2018 during now-former President Donald Trump's administration. Hunter Biden <a href="https://www.washingtonpost.com/national-security/2023/06/20/hunter-biden-plea-deal/">reportedly failed to pay</a> around $1.2 million in taxes in 2017 and 2018, but his attorneys say he has since paid the IRS the money in full. While US Attorneys typically resign en masse with each new presidential administration, the Justice Department under Biden <a href="https://www.washingtonpost.com/national-security/biden-trump-us-attorneys-resign/2021/02/09/a8c5adcc-6af1-11eb-9f80-3d7646ce1bc0_story.html">asked Weiss to remain in his role</a>.It is unlikely that Tuesday's news will end Biden's struggles. Republicans, led by former President Donald Trump, have used the president's son as a cudgel against Joe Biden since the early days of the 2020 presidential campaign.Just last week, Sen. Chuck Grassley said on the Senate floor that a foreign national who claims he bribed then-Vice President Joe Biden has 17 audio tapes of conversations discussing the alleged illicit dealings, <a href="https://www.cnn.com/2023/06/15/politics/republican-reaction-alleged-audio-recordings-biden-bribery-scheme/index.html">though even some Republicans aren't clear if the tapes are legit</a>. House Republicans, armed with their razor-thin majority, have also zeroed in on Hunter Biden through multiple probes. House Oversight Chairman James Comer <a href="https://www.businessinsider.com/james-comer-house-gop-oversight-hunter-biden-compromised-joe-biden-2022-11">has sought to portray his investigation</a> as one of the president as his panel combs through Hunter Biden's financial records.In a statement, the president and first lady expressed their continuing support for their son."The President and First Lady love their son and support him as he continues to rebuild his life," White House spokesman Ian Sams said in a statement after the news broke. "We will have no further comment."This story is developing and will be updated.

Hunter Biden to plead guilty in criminal gun and tax case

There's a mystery lurking in America's national medicine cabinet.Americans pay the highest prices in the world for lifesaving medicines — roughly triple what people in the world's other big economies pay for the same name-brand, on-patent drugs. The cost of producing a medicine generally doesn't vary much — so it stands to reason that the US's big pharmaceutical companies should therefore earn far more in the US than they earn elsewhere. Simple math.But take a look at the corporate disclosures of America's largest pharmaceutical companies, and a puzzling hole opens. The six major US pharmaceutical firms that provide fairly detailed data reported making $215 billion worth of sales in the US for 2022. Given America's systematically higher prices, their sales abroad were logically more modest — totaling $170 billion. Despite this discrepancy, the companies reported earning very, very little in profits — in some cases, absolutely nothing — in the US. Of their $100 billion combined profit, the companies said $90 billion was made abroad, while a paltry $10 billion came from their US operations. That comes out to a profit margin of 5% in the US and a margin of over 50% abroad. What's going on?Tax avoidance, of course. When questioned, pharmaceutical companies inevitably respond that they pay all the tax that they legally owe. A Merck representative, for example, said that Merck "complies with all tax rules on a worldwide basis." But these explanations are a smoke screen. Most of America's major pharmaceutical companies have simply perfected the art of legally shifting the profit on their US sales out of the country to low-tax jurisdictions.It is undeniably allowed by the tax law, but it is still an outrage. Americans are not only paying through the nose for their prescriptions but also receiving none of the benefits from having a robust "American" pharmaceutical industry. The tax revenues from US sales are being paid abroad, rather than being reinvested in new research at the National Institutes of Health. Pharmaceutical-manufacturing jobs are being created abroad, rather than at home. While the battle to lower drug prices is likely to drag on for years, there are clear ways for the US to prevent this sort of profit shifting that will not only make the tax system fairer but also allow Americans to recapture some of the value they're creating for these giant companies.<h2>Pay no attention to the profits behind the curtain</h2>To get a sense of just how much money these pharmaceutical companies are moving around, it's useful to look at a case study. Take AbbVie, the producer of the blockbuster immunosuppressive drug Humira, which is used to treat a variety of conditions, including arthritis and Crohn's disease. An investigation by Democratic Sen. Ron Wyden of Oregon found the company booked 99% of its profit abroad in 2020, despite generating only three-quarters of its sales overseas. More recently, AbbVie claimed it's actually losing money in America: The company reported a $5 billion loss on its US operations in 2022, while generating a $18 billion profit outside the US. Rather remarkably, AbbVie reported only $12 billion in non-US sales, meaning its reported profit outside the US exceeded its revenue.AbbVie is an especially poignant example, but it's hardly alone. Merck, the maker of the blockbuster (and expensive) drug Keytruda, reported earning only $1 billion in profit on its $27 billion in US sales in 2022, while reporting that it earned $15 billion abroad on its $32 billion in sales overseas.Pfizer, which famously produced the first mRNA coronavirus vaccine, now reports — unlike in the past — making a bit of money in the US. Even then, the discrepancy is quite large: $5 billion in the US in 2022 and $30 billion abroad. Before the surge in revenues and profits associated with its successful vaccine, Pfizer somehow always seemed to lose money in the US.At this point, profit shifting is the industry norm: Of the eight biggest US pharmaceutical companies, only Gilead reports earning the majority of its income in the US. The other seven companies appear to have paid the US government just over $2 billion on their $108 billion global profit in 2022 (this sum includes Eli Lilly, which reports the distribution of its tax payments but not the distribution of its earnings). Governments outside the US actually collected more tax revenue from these seven "American" pharmaceutical companies than the US government: $11.5 billion.<h2>Large legal loopholes</h2>The offshore migration of these pharmaceutical companies' profits may seem egregious, but the tax gymnastics are generally legal. In fact, the US corporate-tax code effectively incentivizes American pharmaceutical companies to play this game.On paper, America's corporate-tax rate is 21%, but the country's largest and most profitable pharmaceutical companies don't pay anything close to that. The effective tax rate for most of the big pharmaceutical companies on the profits they keep in the US is much closer to 10%. But since most of their profits are shifted overseas, the eight largest US pharma companies end up paying only about 3% of their global profit to the US Treasury. Most average American households have a far-higher tax burden.Companies' ability to keep their US tax bill low is made possible by the US's treatment of money made overseas. Through 2017, US companies were allowed to indefinitely defer US tax payments of profits earned offshore. Many companies, unsurprisingly, found ways to move profits to no-tax jurisdictions in the Caribbean and Europe. The most common way to do this was by parking their intellectual property — such as the patents that give them a legal monopoly to sell a drug they've developed — in no- or low-tax jurisdictions. Add in overseas manufacturing, and almost all profits earned on US sales were shifted to the low-tax jurisdictions. AbbVie, for example, <a href="https://www.wsj.com/articles/senate-report-hits-abbvies-bermuda-tax-structure-for-u-s-humira-sales-11657184401" target="_blank" rel="noopener">located the right to profit from Humira</a> in its Bermuda subsidiary and manufactured the drug in Puerto Rico, which is considered outside the US for tax purposes since the island is a territory rather than a state. So all the profit for the drug was technically attributed to the division in no-tax Bermuda. Even though the profits were being legally booked as profits in the Caribbean or Irish subsidiary of a US firm, in many cases, these companies kept the funds in a US bank account or invested in US bonds. The firms could even take out a loan in the US using the overseas cash as collateral, so clearly the money wasn't "trapped" offshore. The overall result was a mess, and there was no doubt that the corporate-tax code needed to be reformed.But instead of solving the problem, the 2017 Trump corporate-tax reform made it worse. The law imposed a special 10.5% tax rate on profits made outside the US. This would seem to solve the issue — money parked in other countries was still subject to collection from the Treasury. But the new rules allowed companies to blend all of their foreign profits together in one big pot: A company with some profits in a high-tax country such as Germany could use its mandatory payments there to offset some of the earnings attributable to no-tax jurisdictions such as Bermuda. It couldn't do the same with its US profit. So with a bit of accounting, companies could avoid paying the minimum tax on their offshore income. The overall result was an "America last" tax code: US pharmaceutical firms got a big tax cut, while the incentive to move production of new drugs to low-tax jurisdictions such as Ireland remained.US trade data corroborates this story. The US has a large trade deficit in pharmaceutical products with other countries — a bulk of the imports are coming from low-tax jurisdictions such as Ireland, Singapore, Switzerland, and Belgium. Even the companies themselves report to their shareholders that they pay low effective rates because of tax-haven countries. Merck's latest annual 10-K report explained that the differentials in tax rates were due to "operations in jurisdictions with different tax rates than the US, particularly Ireland and Switzerland, as well as Singapore and Puerto Rico." None of this is particularly hidden.What's more, the superlow rate enjoyed by American pharmaceutical companies isn't necessary for these firms to be internationally competitive. Denmark's Novo Nordisk reports paying tax at about the Danish corporate rate (22%), and it pays that tax mostly in Denmark, even though its biggest market is the US. Even Switzerland's Novartis pays the majority of its tax in Switzerland.To add insult to injury, in many cases, these profits come from drugs developed through research made possible by National Institutes of Health funding and US tax credits for research and development. Despite this support, the US gets neither the biopharmaceutical-manufacturing jobs nor the tax revenues from medicines brought to market by US companies — it gets stuck with only the tab. If that sounds like a raw deal, that's because it is.<h2>A spoonful of medicine to make the taxes go down</h2>America's pharmaceutical companies have made great contributions to medicine. But there's no reason to think that they wouldn't make the same contribution to human health if they actually paid US taxes on the profits from their US sales. Economic theory and global practice show that any increase in their income taxes would be absorbed by the shareholders of the big pharmaceutical companies, not those buying their drugs — the pharmaceutical companies already charge the absolute maximum possible on their patent-protected medicines, and they certainly aren't doing so to cover the cost of their nonexistent US tax bill.Common-sense reforms can help end this practice. One idea is to subject all overseas profits to a 15% minimum tax, assessed on a country-by-country basis to avoid accounting tricks. Another is to place limits on pharmaceutical firms' ability to claim tax credits for research on the development of drugs when the intellectual property is then shifted outside the US — this would also eliminate the incentive to offshore pharmaceutical production and US jobs. The net result would be more biopharmaceutical investment in the US, more tax revenues for the US Treasury, and, ultimately, a more resilient and more innovative US economy.<a href="https://www.businessinsider.com/author/brad-setser">Brad W. Setser</a> is the Whitney Shepardson senior fellow at the Council on Foreign Relations (CFR). <a href="https://www.businessinsider.com/author/tess-turner">Tess Turner</a> is a research associate at the Council on Foreign Relations (CFR).

Big Pharma rakes in $215 billion a year in America &mdash; yet pays almost no taxes

Production Linked Incentive (PLI) Scheme, government <keyword id="135966" type="General" weightage="20" keywordseo="financial-support" source="Orion">financial support</keyword>, <keyword id="16061814" type="General" weightage="20" keywordseo="exemption-from-Goods-and-Services-Tax" source="Orion">exemption from Goods and Services Tax</keyword> (GST) are some of the Budget 2023 wishlist of the Indian Space Association (ISpA). According to ISpA's Director General, Lt. Gen. AK Bhatt (Retd.), the suggestions/wishlist were received from the space industry on tax policies and incentives to promote investment, research and development, and employment in the space sector. The space sector lobby body said PLI for the sector will promote research and development in India and provide incentives to entities engaged in the space sector. The ISpA also wants the government to provide financial support through loans, grants and tax incentives for companies and organisations in the space sector. "Since the new space policy is in its final stages of development, the provision of tax exemption for startups should be continued till the time the incumbent Policy is released/implemented," Bhatt said. Considering that most space-tech companies in India are startups and access to capital is an issue, it would be beneficial to create parity in terms of the short-term capital gains tax rate and treatment with respect to listed and unlisted entities and also provide exemption from Angel tax, the industry body said. The industry also wants the setting up of Space Technology Parks and creating a group of experts for the space ecosystem usage. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/hdfc-bank-q3-net-at-12259-cr/articleshow/96988087.cms" style="">HDFC Bank Q3 net at ₹12,259 cr</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/wipro-results-q3-fy23-wipro-sees-fy23-revenue-guidance-between-11-5-12/articleshow/96969117.cms" style="">Wipro sees FY23 revenue growth at 11.5-12%, Q3 profit growth beats analyst expectations</a>

PLI, tax exemptions and financial support from government: Budget wishlist of space sector

<ul class="summary-list"><li>Six states are on track to tax Biden's student loan debt forgiveness.</li><li>Nonpartisan think tank the Tax Foundation said some states are likely to end up blocking tax plans.</li></ul>Six states are set to tax Biden's student loan debt forgiveness, but one expert says the number is likely to fall.Historically, any sort of debt forgiveness or debt cancellation at the state or federal level has been considered taxable income. But under the American Rescue Plan act any student loan debt forgiveness between 2021 and 2025 will not attract federal tax.The debt relief is still triggering some states' tax codes because not all conform to the Internal Revenue Code (IRC) in the same way."Most states follow the federal tax code to a significant degree," Jared Walczak of nonpartisan think tank the Tax Foundation told Insider.But while most do so with rolling conformity — where if a change is made to the Internal Revenue Code it is followed automatically — some have fixed-date conformity, he said.This is where most of the state-by-state deviation on taxing student loan forgiveness stems from.Walczak said that the only states that had actively made a decision about student debt and decoupled from the American Rescue Plan were <a href="https://www.businessinsider.com/indiana-tax-student-loan-forgiveness-biden-income-tax-2022-9">Indiana</a> and <a href="https://www.businessinsider.com/north-carolina-student-loan-debt-forgiveness-taxed-2022-9">North Carolina</a>. However, the Governor of <a href="https://www.businessinsider.com/gop-states-shouldnt-tax-biden-student-loan-forgiveness-north-carolina-2022-9">North Carolina, Roy Cooper, </a>has called for the tax to be waived. Plans by states including Arkansas, Minnesota, <a href="https://www.businessinsider.com/mississippi-tax-forgiven-student-loan-debt-13-states-may-follow-2022-8">Mississippi,</a> Wisconsin, and California to tax the loans were mainly due to legacy issues, Walczak said. He expected most to amend their tax codes rather than leave residents with an extra bill."It's a list that's only going to get smaller, not larger at this point," Walczak said. "No state has taken any sort of action since the announcement of student debt cancellation to affirmatively tax it," he said. "Instead, we've had states largely trying to change the treatment to avoid taxing it. I've heard lawmakers in Arkansas, Mississippi, Minnesota, California, and Wisconsin, all talk about the possibility of amending the law."California, for example, is more likely to adopt a provision conforming directly to the treatment of student loan debt under the IRC than allow the relief to be taxed."California is an interesting state," said Walczak. "Officials are hanging on to the thin read that they don't know whether it's taxable or not."Walczak said few believed tax could be avoided under California's existing regulations. "So we've essentially seen legislative leaders say: 'well if that's true, we'll fix it'. We will go just pass a law that will change the treatment, and they almost certainly will," he added.Any states that don't take steps to avoid the extra tax could saddle borrowers with an average tax bill of $500, Walczak estimated.

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Falling birth rates are freaking countries out and spawning dubious fixes like tax breaks, cheaper cars, and free surgery

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