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Kozi Checks & Balances TaxTactics News

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September 25.2025

2 Minutes Read

Understanding National Debt: How Interest Payments Affect Americans

US Capitol dome lit at night with waving American flag, national debt.

The Unseen Weight of National Debt

The rising national debt is a pressing issue that impacts every American, though many may not realize its full implications. At its core, national debt refers to the total amount of money the federal government owes to creditors, accumulated over years of borrowing to cover budget deficits—years where spending consistently outpaced revenue. Recent reports highlight how this debt has ballooned to an alarming $36 trillion, a figure that continues to climb at an unsustainable pace.

Why Interest Payments Matter

Interest payments on the national debt are becoming one of the largest budget items, surpassing even critical services such as national defense and veterans' benefits. This is a trend that too often goes unnoticed. In 2024 alone, the U.S. government is projected to spend $1.13 trillion on interest payments, a number set to rise as borrowing increases. In light of these escalating costs, understanding how these expenses divert funds from socially beneficial programs is essential. For many Americans, this means less funding for health services, education, and welfare programs that keep communities thriving.

The Impending Impact of New Legislation

Recent fiscal initiatives, like the One Big Beautiful Bill Act (OBBBA), are poised to exacerbate the situation. Designed to build upon previous tax reforms, economic analysts predict that the OBBBA could increase federal deficits by over $3 trillion through 2034. This is not just a theoretical concern; decreased fiscal health will likely affect how the government responds to future crises, such as economic downturns or natural disasters. As our budget priorities are reshuffled to accommodate soaring interest payments, immediate needs may be overlooked.

The Call to Action: Staying Informed

The complexities surrounding national debt, deficits, and interest payments highlight the need for greater financial literacy among the public. Understanding how these issues affect personal lives and local communities equips citizens to engage with their representatives in meaningful ways. It’s crucial to advocate for sensible fiscal policies that prioritize both current needs and long-term sustainability.

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09.23.2025

Beer Taxes in Europe: What Every Consumer Should Know About Beer Pricing

Update Understanding Beer Taxes in Europe: An Overview This October, as festivities abound across Europe with Oktoberfest celebrations, it's essential to delve into the beer taxes impacting consumers this year. Many don’t realize how heavily these taxes influence beverage prices. The European Union mandates a minimum excise duty of €1.87 per 100 liters of beer—equating to about €0.0309 ($0.0364) per standard 330 mL bottle. This figure, however, represents only the baseline; most countries impose significantly higher rates, revealing just how diverse beer taxation is across the continent. Who Pays More? The Range of Taxation Across Europe A fascinating aspect of these beer taxes is the wide variation among EU member states. For instance, Finland takes the lead with the highest excise duty at €0.597 ($0.704) per 330 mL bottle. In contrast, Bulgaria boasts the lowest rate at only €0.0316 ($0.0373) per bottle. This disparity raises questions about how these different rates affect consumer choices and business competition within the beverage sector. Do travelers think twice before enjoying a pint in Finland compared to Bulgaria? The Role of Value-Added Taxes and Consumer Choices Additionally, it’s crucial to factor in value-added tax (VAT), a separate charge added to the sales price of beer. The interaction between excise duties and VAT can further complicate understanding the final price paid by consumers. As citizens enjoy their local brews, how do these taxes impact their decisions? With rising costs, might people be inclined to seek out less expensive alternatives or support local breweries that offer competitive pricing? Embracing Local Breweries: A Call to Action As we sip our favorite drinks this season, it’s a fantastic opportunity to appreciate the hard work that goes into crafting our local beers. Supporting nearby breweries not only keeps our communities thriving but can also provide a refreshing experience without the heavy tax burden found elsewhere. So, as you raise your glass this Oktoberfest, consider where your beer comes from and the passion behind it!

09.19.2025

Are U.S. Multinationals Gaining an Edge From G7's Minimum Tax Solution?

Update Understanding the G7's Global Minimum Tax In a significant political development, the G7 recently announced a new global minimum tax framework aimed at balancing the playing field for multinational corporations. This initiative includes what is known as the "side-by-side" solution, which has raised questions about whether U.S. multinational enterprises (MNEs) could gain a competitive edge over their counterparts in Europe and other G7 nations. What Does the Side-by-Side Solution Mean? The side-by-side solution implies that U.S. parented companies will be excluded from certain tax regulations outlined in the G7's Pillar Two agreement. This decision is crucial as it leads to inquiries about the hidden advantages that U.S. firms may experience. The central questions include whether the U.S. tax system is effectively a tax haven, if its cross-border tax rules are less stringent, and whether the compliance burdens are lighter compared to those of other nations. Is the U.S. a Tax Haven? Contrary to what some might believe, the U.S. does not qualify as a tax haven under the G7's framework. With a corporate income tax rate of 21% and a separate alternative minimum tax of 15%, the U.S. operates as a high-tax jurisdiction, somewhat distanced from the temptations of low-tax states. Conversely, the EU has been scrutinized for certain member states that have attracted companies with notably lower tax rates. Compliance Costs: A Double-Edged Sword When analyzing the compliance costs, the landscape gets complicated. While the U.S. tax code is notoriously intricate—leading to an estimated compliance burden of $536 billion—there are nuances that might leave U.S. firms at a disadvantage. A more straightforward compliance system in other countries could, theoretically, outweigh any competitive edge provided by lower direct taxes. The Future of U.S. Multinationals Under G7 Rules As we look to the future, the implications of the G7's global minimum tax will unfold in complex ways. While it's easy to simplify discussions around advantages, businesses need to consider not just tax rates but also compliance burdens and the broader economic environment influenced by these regulations. The conversation around international taxation is becoming increasingly relevant, especially as governments grapple with ensuring that firms contribute their fair share of taxes while remaining competitive. Observing how U.S. multinationals respond to these changes will give insight into the future of global business practices.

09.18.2025

Is the US Tax Code Fair? Examining Its Progressivity and Impacts

Update Understanding the Fairness of the US Tax System Is the US tax code fair? Many Americans think otherwise. According to a recent poll, about 65% of taxpayers believe it is not, with a significant portion feeling that higher earners should contribute more in taxes. This sentiment brings forward an important discussion about the progressivity of the tax code—essentially, how it impacts different income groups. What Does Progressivity Mean? A progressive tax system requires those with higher incomes to pay a larger percentage of their income in taxes compared to lower-income taxpayers. The opposite, a regressive tax system, places a heavier burden on those who earn less. In the US, the tax system is designed to be progressive, especially at the federal level where individual income tax plays a critical role. This means that as you earn more, you’re taxed at higher rates—making wealthier individuals contribute a larger share of total tax revenues. Insights from Recent Data Recent IRS data highlights that the top 50% of earners are responsible for 97% of federal income taxes, leaving only 3% for the bottom half. Moreover, lower-income individuals often benefit from refundable tax credits, which can result in negative effective tax rates, essentially giving them more in benefits than they pay in taxes. This reflects a genuinely progressive system where low-income families receive significantly more assistance than taxes they contribute. Reinforcing Progressivity with Legislation Recent changes in tax legislation, like those from the One Big Beautiful Bill Act (OBBBA), focus on maintaining the progressive nature of the tax code. While new additions were made, the structure that taxes higher earners more heavily remains intact. This is a reassurance for those advocating for tax reforms aimed at fairness. Looking Ahead: The Future of Tax Progressivity It is clear that the US tax code has evolved over the last century, becoming more progressive rather than less. Looking ahead, it’s vital for policymakers to consider how any new changes will affect this balance. Ensuring that fairness is preserved in tax policies that reflect the diverse economic backgrounds of taxpayers is essential for a harmonious society.

Understanding National Debt: How Interest Payments Affect Americans

The Unseen Weight of National Debt

Why Interest Payments Matter

The Impending Impact of New Legislation

The Call to Action: Staying Informed

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