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Monday, March 19, 2012

Global Trends Relevant to Taxation

I am a fan of identifying and analyzing trends, particularly as they may indicate areas where tax rules and systems may need to be updated/modernized. Today, I came across a January 2012 article by Chris Walsh of Vertex, on six global trends relevant to the tax world. The trends:
  1. Global economic environment
  2. Globalisation
  3. Tax talent
  4. Environmental issues
  5. Legislative environment and "hyper regulation"
  6. Technology
I encourage you to read the short article for all of the details.  For tax talent, Walsh notes that we may have a shortage soon given impending retirements. He also notes the need for tax talent with international tax understanding. This trend is good news for the growing number of full-time students in the SJSU MST Program.

The environmental trend is already here in the US with calls to reduce tax preferences for oil, gas and coal. President Obama also wants to bring back the Superfund taxes. Also, some type of carbon omissions tax could help us reduce our greenhouse gas emissions and raise money to pay down the deficit.

Two more trends I would add:

  • Entrepreneurship. I think we will be seeing more young people start their own businesses, particularly ones that focus on the Internet or personal services. 
  • Addressing growing inequalities.  The "occupy" groups are drawing attention to the growing income and wealth gaps between the 99% and the top 1%, as are reports from various think tanks and the OECD.
What do you think? Do you agree with the trends noted above? Any to add?

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