tax

The top candidates for California governor clashed over the high costs of gas, housing and homeowner’s insurance in a testy debate Tuesday evening, a fiery exchange that may finally draw voter attention as the June 2 primary election fast approaches.

Former U.S. Health and Human Services Secretary Xavier Becerra, whose campaign blossomed after former Rep. Eric Swalwell dropped out amid sexual assault and misconduct allegations, came under persistent attack during the 90-minute debate but also went on the offensive.

Former Fox News host Steve Hilton, a Republican who leads all candidates in the most recent opinion polls, ripped Becerra for promising to declare a state of emergency to address rising homeowner’s insurance rates, saying the governor lacks that constitutional authority.

“We can’t have a governor who doesn’t understand how the government works,” Hilton said.

Becerra, who served as California attorney general before joining the Biden administration, quickly defended himself, saying he knows the law better than Hilton does.

“We don’t need a talking head from Fox News to tell us how the government works,” he said.

And that was after Becerra got in an early dig at Hilton, who has been endorsed by President Trump, by referring to Trump as “Hilton’s daddy.”

The debate was broadcast and livestreamed by CBS stations around the state. Hundreds of people watched from Pomona College’s historic Bridges Auditorium, a Renaissance Revival-style landmark with Art Deco flourishes that was once among the premier performance venues in Southern California.

With eight major candidates from both parties participating, CBS moderators billed it as “the largest and most inclusive debate of the election.” Becerra and Hilton were joined by Republican candidate Riverside County Sheriff Chad Bianco and Democratic candidates San José Mayor Matt Mahan, former Orange County Rep. Katie Porter, billionaire Tom Steyer, state Supt. of Public Instruction Tony Thurmond and former Los Angeles Mayor Antonio Villaraigosa.

Some takeaways from the debate:

Candidates didn’t shy away from the top issues

Moderators set the theme for the first half-hour of the debate as “affordability,” a top concern among California voters, and almost immediately the candidates began sniping and talking over one another.

Almost all of them vowed to accelerate home construction in California, pivotal to reducing the state’s high cost of housing.

There was no shortage of ideas for other ways to ease the financial burdens facing Californians, but few specifics on how they would deliver on those promises given the state’s complex and arduous legislative process.

Hilton promised to cap the price of gas at $3 per gallon, and Mahan vowed to suspend the state gas tax. Bianco said Democrats have long overregulated and overtaxed Californians, and the state’s supermajority Democratic Legislature would have to get in line with him and end those things if he’s elected.

Becerra said he would reduce prescription drug prices. Thurmond said he would provide down-payment assistance grants to those trying to own their first home.

Barbs traded over climate-caused emergencies

Anchors and reporters from local CBS stations moderated the debate, including Los Angeles anchor Pat Harvey, Sacramento anchor Tony Lopez, Bay Area anchor Ryan Yamamoto and national investigative correspondent Julie Watts. They were joined by Sara Sadhwani, an assistant professor of politics at Pomona College and a member of California’s independent redistricting commission.

Moderators pointed to the surge in catastrophic wildfires across the state in recent years due to climate change, as well as the threat of earthquakes, and asked the candidates how they would respond to future emergencies.

As he did throughout most of the debate, Bianco responded by bashing California’s Democratic leadership, which he said created most of the ills facing the state.

Bianco said the root causes of fire disasters in the state are “not because of climate change” but due to “failed environmental activist policies” that prevented fire departments from clearing highly flammable brush around communities for years.

Mahan, after touting his actions as a Silicon Valley mayor during emergencies, quickly pivoted to take shots at Becerra and his role as U.S. Health and Human Services secretary during the pandemic.

He said Becerra had “never met a crisis that he couldn’t ignore” and accused Becerra of failing to deal with COVID-19, monkeypox and the surge of unaccompanied minors at the U.S.-Mexico border during the Biden administration.

Becerra responded by saying that his agency dealt with the crises by working with all 50 states and the federal government to quickly roll out vaccines and other resources.

“You’re not wearing a mask, are you, Matt? You’re not worried about catching monkeypox, right?” Becerra said.

Steyer also came under attack when he starting discussing his plans to “make polluters pay” for the effects of climate change. Porter criticized the former San Francisco hedge-fund founder for making millions off the oil and gas industry, and using those profits to fund his campaign for governor. Steyer has spent more than $143 million of his own money on his campaign, according to fundraising disclosures filed with the California secretary of state’s office.

“How about profiteers pay? You pay the lowest tax rate on this stage, and yet you made the billions that you’re using to fund your campaign off fossil fuels,” Porter said to Steyer.

Steyer responded that he is a “change agent” candidate opposed by special interests and pointed to campaign committees funded by utility and other industry groups opposing his bid. PG&E, the California Chamber of Commerce and the California Assn. of Realtors have put more than $29 million into a pair of committees to fund attack ads against the billionaire.

Republicans focus on blaming Democrats

Just weeks before the June 2 primary, the race to replace term-limited Newsom remains wide open, with many voters still undecided.

Republicans Hilton and Bianco have led numerous public opinion polls while the large field of Democrats have split the vote, leading to fears among Democrats that the party could get shut out of the general election, despite outnumbering Republicans nearly two-to-one among the state’s registered voters. In California’s open primary, the top two finishers advance to the general election, regardless of party affiliation.

The two Republicans avoided overtly attacking each other at the debate but were regularly the targets of other candidates on the stage.

Becerra, speaking about federal healthcare funding cuts approved by President Trump and congressional Republicans last year, referred to the president’s endorsement of Hilton. “The first thing we have to do is stop Steve Hilton’s daddy,” Becerra said.

Hilton responded jokingly that his father, who was the goalie for the Hungarian national ice hockey team, hadn’t weighed in on the race. And he said Becerra’s comment pointed to what is wrong with California politics — a fixation on Trump despite Democrats controlling the state for more than a decade.

“We’ve had the same people in charge for 16 years now, and it’s such a disaster and such a high cost of living for everyone, and the highest poverty rate in the country and the highest unemployment rate in the country, and the worst business plan,” Hilton said. “All these things going wrong, they can’t do anything except blame Trump. Let’s see how many times you hear that tonight.”

Bianco grew visibly frustrated several times over the debate’s format and his opponents’ answers. At different points, he compared the event to “The Twilight Zone” and called it “the hour and a half that [viewers] are never going to get back.”

Pressed on what he would do differently if elected, the Riverside sheriff also focused on criticizing Democrats and accusing them of lying.

“We have a group of of 20-ish-year-old kids and we’re just sitting here lying to them about broken Democrat policies in California for the last 20 years, and we’re going to sit here and blame a president who’s been president for a year. This is absolutely ridiculous,” he said.

Hilton has seen a bump in his polling numbers since he was endorsed by President Trump earlier this month. A CBS News/YouGov poll of more than 1,400 registered voters released Monday showed Hilton leading with 16%, followed by Steyer with 15%, Becerra with 13%, Bianco with 10%, Porter with 9%, Mahan and Villaraigosa with 4% and Thurmond with 1%. The largest group of voters — 26% — was undecided.

Nixon reported from Sacramento and Mehta reported from Claremont. Times staff writers Kevin Rector, Dakota Smith and Blanca Begert contributed to this report.

Last year, studios and Hollywood labor unions lobbied hard to ensure animated movies and shows could compete for California’s expanded film and television tax credit program.

The payoff came last week, when three animated movies were among the nearly 40 film projects that received a production incentive in the latest round of awards, the California Film Commission announced Thursday.

Walt Disney Co.-owned 20th Century Studios received $21.9 million for “The Simpsons Movie 2,” Disney Entertainment Television got $3.5 million for “Phineas and Ferb” and DreamWorks Animation was awarded $24.7 million in credit allocation for a yet-untitled animated film.

The three are the first animated feature films to receive tax credits from the state of California. (Last month, two animated shows — a spin-off of “Rick and Morty” and “Stewie,” which branches off from the “Family Guy” cartoon — also received tax credits.)

I spoke with DreamWorks Animation Chief Operating Officer Randy Lake about the award, which he called a “potential game changer” for the Glendale-based studio known for the “Shrek” and “Kung Fu Panda” franchises.

“Unlike live-action, our projects are years long,” he said. “You’re talking about not just a job for six or nine months on set. It’s literally three or four years that these projects can take. It’s long-term employment.”

Like most of Hollywood, the animation industry has suffered from the effects of the 2023 dual writers’ and actors’ strikes, as well as the retrenchment in studio spending after the initial rush to invest in content for streaming services.

And like much of U.S. film and TV work — particularly in California — the animation business has been deeply affected by the increasingly rich tax credits offered by other countries.

Over the last 15 years, countries including Canada and Ireland have slowly built up animation hubs, aided by their local talent and lucrative production incentives specific to animation and visual effects.

For instance, visual effects and computer animation unit Sony Pictures Imageworks, which Lake ran for years, relocated its Culver City headquarters to Vancouver more than a decade ago.

DreamWorks, too, has outsourced work to partner studios, particularly in Vancouver and Montreal, as costs in the U.S. have increased and studios face pressure to rein in their production expenses while theatrical box-office revenue has become less reliable.

Just three years ago, DreamWorks cut about 70 jobs across its corporate functions, feature films, TV and technology departments. In 2024, Disney-owned computer animation studio Pixar laid off about 175 employees as it pulled back on its production of streaming series.

But with the recent tax credit allocation, DreamWorks will hire about 100 people in California for its upcoming untitled film. Those jobs would probably would have been outsourced to a third-party studio, Lake said. Keeping all of the jobs on that film in California helps improve collaboration among the teams and foster more creativity, he said. Today, DreamWorks has about 1,000 employees.

To understand why the new incentives are meaningful, consider that a DreamWorks Animation movie similar to the one that received the credit will typically have a crew of about 400 to 500 people.

That film is a big feature, though Lake declined to share details since the project hasn’t been announced.

Both the Animation Guild and studios have pointed to the incentive as a way to bring back animation jobs to the Golden State.

“Studios have been chasing animation tax credits in other states and countries for years, so it’s incredibly rewarding to see them use California’s for the very first time,” Marissa Bernstel, a trustee on the union’s executive board and member of the task force that helped lobby for the expanded production incentives, said in a statement last week. “The results feel very real, and I’m excited to see what future employment opportunities the incentive inspires.”

Lake said DreamWorks hopes to take advantage of the state incentives for all of its full-budget films.

“We’ll be applying for the next window,” he said, adding that he hoped they will be successful so “we’ll be able to have more and more of our films be fully produced in state. That’s the goal.”

Stuff We Wrote

Film shoots

Number of the week

Lionsgate’s “Michael” had a massive opening weekend with just over $217 million in global box-office revenue. In the U.S. and Canada, the Michael Jackson biopic hauled in about $97 million, far surpassing studio expectations.

The film, which stars Jackson’s nephew, Jaafar Jackson, as the late singer, chronicles the pop star’s rise from his early days in the Jackson 5 through the growth of his solo career. The movie ends in 1988 while Jackson is on tour for his hit album “Bad.”

The premiere for “Michael” marks the biggest domestic opening for any biopic, musical or otherwise. The 2015 movie “Straight Outta Compton” previously held the record for highest opening weekend total for a musical biopic, with $60 million in the U.S. and Canada, followed by the Queen biopic “Bohemian Rhapsody” in 2018, which had a $51.1-million domestic opening.

Critics’ reviews of “Michael,” however, were largely negative. Many noted the plot sidesteps the child sexual abuse allegations against Jackson and said the film presents a more one-dimensional view of the singer.

An earlier cut of the film did end in 1993 and addressed the allegations, but that ending had to be scrapped due to a clause in a legal settlement with an accuser that stipulated he could never be pictured or mentioned in a dramatization of Jackson’s life. Jackson and his estate have denied that the pop star abused children.

What I’m watching

I finally finished the Hulu series “Paradise” this last week, which kept me guessing about literally everything all the way until the end. I’m interested in seeing where this genre-morphing show goes next season.

Hold everything. Hollywood’s Lexington Park will not be getting a new playground after all, and that’s both good news and bad news.

To explain, let me take you back to April 15, when I tagged along with Sabine Phillips on her weekly three-hour inspection of the neighborhood’s chronic trash problem. Phillips, a housekeeper by trade, was hired by one of her clients a few years ago to help clean up their streets.

So each Wednesday, Phillips went out on her yellow Huffy cruiser and routinely logged 50 or more illegally dumped items and reported them to the city’s 311 system for pickup. And each Saturday, she filled up to four or five big bags with smaller bits and scraps of debris.

Near the end of my three hours with Phillips, who got help that day from volunteer Keith Johnson, we visited the Lexington pocket park. There were no kids there, and there never are, Phillips said. That’s because of the glass and needles in the sand, drug activity, sporadic violence, gang tags on the slide and homeless camps.

A guy from the Recreation and Parks Department showed up and said the park was in line for a possible upgrade that could cost as much as $300,000. In my April 18 column, I questioned the wisdom of investing in a playground that would remain unsafe unless there was a plan to address all the aforementioned issues.

Nick Barnes-Batista, communications director for L.A. City Councilmember Hugo Soto-Martínez, wrote to tell me his office was unaware of any playground projects planned for that park.

A spokesperson for Recreation and Parks told me that despite what was said by the employee I met in the park, there is no “immediate playground replacement project on the books.” But the department is “working closely” with the councilman’s office “to identify funding sources and to work with the community on broader park improvements and/or uses.”

OK, so it’s good news that taxpayer funds won’t be plowed into a park that could well be lost to the neighborhood almost immediately, due to all the aforementioned problems.

But it’s bad news and sad commentary that a park in the densely populated heart of the city will remain unusable for the foreseeable future.

The more important consideration, though, is the question of what’s being done to prevent the illegal dumping of furniture, mattresses and other items that sit curbside and often end up as the building blocks of new homeless encampments.

There’s a concentration of social service agencies in the neighborhood, said Stefanie Keenan, a longtime neighborhood volunteer and activist. She’s the one who hired her housekeeper to help look after the neighborhood, and she insists there is not enough enforcement of existing laws to address problems that are both a nuisance and a public safety threat, given the crime and all-too-frequent fires.

A woman pushes her walker past debris in Council District 13 in Los Angeles on Friday.

(Genaro Molina / Los Angeles Times)

Soto-Martínez agreed to talk to me about all of this on Friday morning, when he dropped by the Bresee Foundation, a nonprofit with a range of enrichment activities for youngsters and families in the largely low-income immigrant community, as well as homelessness prevention programs. Staff and volunteers, recruited with support from the council office, were about to head into nearby streets with shovels, brooms and trash bags.

Soto-Martínez acknowledged his district’s many challenges, told the gathering that the strength of a community is its people, and thanked them for their service.

The councilman, a former labor leader who joined the growing progressive wing of the L.A. City Council in 2022 with support from the local chapter of Democratic Socialists of America, has three challengers in the June 2 primary (Colter Carlisle, Dylan Kendall and Rich Sarian). He told me the city has to do a better job of educating people about illegal dumping and how to report it. A related challenge, he said, “is how quickly can we get to it. And that is a budget issue because we’ve cut so many positions on trash pickup.”

Soto-Martínez said his office used discretionary funds to hire two crews from the L.A. Conservation Corps for trash pickup. On homelessness, he said, he has a team strategizing to address the needs, and a medical team that works the streets, and a tiny home village is in the works.

But the housing shortage is a major challenge, he said, and when it comes to entrenched homelessness, “we’re now starting to deal with much more difficult cases.” Namely severe mental illness and serious addiction, both of which generally come under county jurisdiction.

“We created another team that goes out every single day. We door-knock, email and phone-bank people who are at risk of eviction,” Soto-Martínez said, adding that homelessness has declined by 25% during his three years in office.

So what is his message to constituents who say they don’t see enough progress?

“We ask them to give us patience and grace,” he said. “There’s a lot of examples like this, where we’re not just dealing with one thing. We’re dealing with four or five things.”

All of that is true, but the patience he asks for is wearing thin among some constituents.

“We need to find common ground and work together,” Soto-Martínez said. “You know, they see trash as an issue, and they’re doing it their way and we’re doing it our way. But how can we team up and do it together? You know, we’re happy to build those networks out, and under many of the issues they describe, I’m not disagreeing. … We all have the same goal.”

L.A. City Councilmember Hugo Soto-Martínez gives a pep talk to volunteers before they leave to clean their neighborhood streets of garbage and debris.

(Genaro Molina / Los Angeles Times)

When Soto-Martínez departed for another appointment, the volunteers took to the streets, filling trash bags. They worked their way up Vermont, and a Bresee employee told me he works the same streets every day, trying to clear a path for “safe passage” as students walk to and from school.

As I said in the earlier column, it’s an inspiration to see people step up for their communities, whether out of pride or frustration. And it’s also reasonable to expect more from City Hall.

I drove over to Western and Sierra Vista, met up with Keenan, and told her about my conversation with Soto-Martínez. She said lax city policies and frequent non-response to citizen pleas for help have created the unsolved problems residents deal with daily. She said city officials have to do a better job of helping homeless people off the streets and preventing further deterioration of neighborhoods.

She was encouraged by a message she got from a representative of Mayor Karen Bass’ office who wants to tour the neighborhood with her.

We walked west on Sierra Vista and came upon a dumped sofa, some cabinets, mattresses, and a man who has been living in a curbside encampment for months. He sat near his belongings, which spilled into the street.

Why hasn’t this been addressed? Keenan wondered aloud. She has decided to stop paying her housekeeper to help address the neighborhood’s needs, and she predicted things will only get worse because of it.

I drove over to the Lexington pocket park, which Soto-Martínez called a priority, among many other priorities. Friday was a holiday — Armenian Genocide Remembrance Day. With schools closed, the park would have been a great little neighborhood asset.

But the entrance was closed, with a lock on the gate, and two tarped dwellings were set up against the iron fencing of the empty park.

steve.lopez@latimes.com

When travelling, it’s important to know what won’t get you in trouble at customs

Travellers could face fines or worse if they overlook an airport ‘rule’ that puts a limit on certain items. It could catch Brits off guard if they end their latest getaway with a last-minute spending spree on various common products or high-end items.

When going to or from the European Union (EU), it is important to understand the regulations regarding the duty-free allowance passengers are permitted. Failing to comply with these restrictions could result in goods being seized, along with potential fines or legal proceedings.

The duty-free allowance applies to both EU and non-EU nationals, including holidaymakers and business travellers. Following Brexit, the UK has been adhering to the regulations for non-EU nationals.

Why is there a duty-free allowance?

Duty-free allowance is the authorised quantity of goods, such as alcohol, tobacco, and gifts, that travellers can bring into a country without incurring customs duty, value-added tax (VAT), or other levies. As a result, people face a strict limit on how much they can observe, or risk being perceived as exploiting the system, reports the Express.

What are the duty-free limits?

Duty-free allowances are split into two categories – restricted and unrestricted goods. Unrestricted goods are those without any special regulations or caps, such as clothing, electronics, or personal belongings, while restricted items are subject to specific limitations, including alcohol, tobacco, and perfume.

The restrictions in place also vary depending on how you’re returning to the UK. Shoppers are often caught out by the deals on offer in airports – but identical rules apply to those travelling by sea.

You’re also unable to pool your allowance with fellow passengers, which means people need to be mindful of their own spending habits. According to ETIAS Visa Europe, Brits returning to the UK via air or sea travel have the following allowances on ‘restricted’ items:

• 200 cigarettes (or 100 cigarillos or 50 cigars or 250g of tobacco)
• Four litres of still wine and 16 litres of beer and one litre of spirits or two litres of fortified or sparkling wine
• Other goods up to a value of €430 per person

The thresholds are reduced for non-EU citizens travelling by rail or road. The website explains that travellers should bring no more than:

• 40 cigarettes (or 20 cigarillos or 10 cigars or 50g of tobacco)
• One litre of spirits or two litres of fortified or sparkling wine and four litres of still wine and 16 litres of beer
• Other goods up to a value of €300 per person

ETIAS warned that, when goods go beyond the duty-free allowance, customs duty, value-added tax (VAT), and other taxes may be applied on the excess amount. The total of duties and taxes owed depends on various factors, such as the type of goods, their value, and the country of origin.

A spokesperson said: “To avoid overpaying taxes and duties, travellers should be aware of the duty-free allowances for the type of goods they are bringing into the EU. They should accurately declare all goods they are bringing in and their value.

“If unsure about the value of an item, travellers can check online or with customs officials. Additionally, travellers should keep all receipts and documentation to show the value of their goods.”

In other news, holidaymakers could face fines of up to £5,000 for bringing certain goods into England, even if those items were purchased at a duty-free price. The Department for Environment, Food and Rural Affairs (DEFRA) released an update at the end of March, calling on travellers to take this “simple step” to protect against diseases.

The city is a popular cruise ship destination, is famous for its huge Christmas lights displays – and is within easy reach of ‘the world’s best beach’

British holidaymakers are bracing themselves for a new tourist tax at a Spanish beauty spot. Vigo, located in the north-west of Spain, has 45 beaches according to one report – and is within easy reach of one of the best beaches in the world.

The city is equally renowned for its spectacular Christmas light displays, considered among the best on the planet. Respected travel expert Simon Calder is a firm admirer of the destination, describing it as ‘cultured’ and ‘highly affordable’. The Aviothic website calls it ‘Spain’s best kept secret’.

But now local officials are putting the finishing touches to plans for a new tourist tax, according to reports in the Spanish media. The move follows in the footsteps of Santiago and La Coruña, both of which introduced similar levies in late 2025, drawing criticism from various quarters.

Reports indicate that Vigo City Council is pressing ahead with proposals to introduce its own tourist tax, with the aim of ‘redistributing’ profits generated by the tourism industry. The levy is also intended to help reduce the environmental strain caused by mass tourism on the local area.

Vigo is perhaps best known for its dazzling Christmas lights, with more than 11 million LED lights illuminated across the city last year. The city, home to around 295,000 residents, is also celebrated for a nearby breathtaking beach within reach of Vigo – although visitors staying near the beach will not pay the tax.

The Guardian once hailed its Rodas Beach, situated on the Cíes Islands, as the “best beach in the world”. The bustling port city is equally popular as a cruise ship destination.

In fact, this week Vigo takes centre stage in international tourism as the season’s first triple cruise ship call gets under way, with the city set to welcome more than 7,500 visitors within just a few hours. The port is simultaneously hosting three large ships, the Britannia, the Ventura and the Le Bellot.

However, it now seems tourists will shortly face a levy for the privilege of visiting the destination. No form of accommodation will escape the charge, according to El Debate. The amount will vary depending on the hotel’s star rating.

The publication reports the tax could reach as much as €2 per person daily for 4-star superior and 5-star establishments. A €1.60 daily charge is proposed for tourist accommodation and 2-star superior, 3-star and 4-star hotels.

It’s understood that under the proposals, holiday apartments and rural tourism properties – alongside hostels and campsites – will incur a €0.80 per person daily fee, while guesthouses and 1- and 2-star hotels will pay €1.20. Cruise passengers won’t escape either. Abel Caballero, mayor of Vigo, confirmed those disembarking at Vigo’s docks will be charged €1.20.

He said: “From when it comes into force until July 1, 2027, the tax will apply to the first two nights of a stay. Therefore, someone visiting Vigo for 4 nights will pay the tourist tax for only the first 2 nights. From July 1, 2027, the tax will apply to a maximum of five nights per stay.”

He said the tourist tax would be rolled out “gradually” from October, shortly before the Christmas lights are illuminated. Exemptions for health reasons are being considered. Children and certain disabled individuals are also expected to be exempt.

The tax must still secure approval from the Governing Board ahead of one final vote – however, the mayor’s comments suggest it could well be on the cards. In Barcelona, the combination of a regional tax and a municipal charge has hiked up the cost to between 5 and 12 euros a night. In La Coruna, the local hotel association has launched a legal battle to block the levy.

Travel journalist Simon Calder has previously highlighted Vigo’s appeal to British visitors. Writing in the Independent, he said: “Vigo claims to be the largest fishing port in the world, and plentiful fresh seafood is a strong attraction. The city is also an excellent starting point for wider exploration of the rias (inlets) that carve the shoulder of Spain so dramatically.”

How can I get to Vigo from the UK?

Ryanair offers a direct service from the UK to Vigo–Peinador airport, operating out of London Stansted. Journey times are approximately 2 hours 10 minutes.

Many visitors heading to Vigo opt to fly into nearby Santiago de Compostela instead, which is just 50–60 minutes away by car. Both Ryanair (Stansted) and Vueling (Gatwick and Heathrow) operate direct flights to Santiago several times weekly, offering a greater choice of services and often cheaper fares.

Bear in mind, however, that Santiago airport is closed from April 23 to May 27, 2026 for runway resurfacing works. At the heart of Vigo’s social scene lies the Casco Vello (Old Town), a beautifully restored maze of narrow granite streets and bustling plazas.

Visitors may also wish to explore Castro de Vigo, an archaeological site that reveals how the region’s original inhabitants lived in stone huts more than 2,000 years ago. The Guardian says the city has 45 beaches, and notes that an attraction for UK tourists in visiting Vigo is that it brings “the Caribbean-like beaches of the Cíes islands within easy reach.”

“The islands are an easy day trip from Vigo, adding a relaxing beach element to your Spanish city break,” the paper said in a positive review of the city.

He was asked if now is a good time to open an ISA or not

Martin Lewis has offered some advice on how you could organise your savings. He explained the practical tip amid the current uncertainty surrounding the economic impact of the Iran conflict.

The major war has already triggered a surge in oil prices, with fears of long-term consequences for food production and global economic growth.

Mr Lewis was questioned on his BBC podcast about whether now is an opportune moment to open a stocks and shares ISA, given that markets are struggling. When share prices fall, it can present a prime opportunity to invest, as your funds could increase in value when the market bounces back. But if prices decline further, the worth of your holdings could also drop. In response, Mr Lewis outlined the general principle to bear in mind.

He said: “If you’re talking about investing for a long term money that you don’t need for five years and you’re going to do that in a nice spread of investments, like a global tracker fund or an S&P tracker or FTSE tracker, then you just have to accept that you will never know when the perfect time to put money in is.”

£1,000 savings tactic

Nevertheless, he did reveal one strategy you could use to reduce the risk posed by market volatility. Mr Lewis said: “Let’s just imagine you’re putting £10,000 in a stocks and shares ISA, and you’re putting it away for a long time.

“You could put £10,000 in now but you could arrange with the provider that it sits in its cash part. You can hold it in cash, within a stocks and shares ISA, for the moment.

“You could say I’ve got £10,000, over the next 10 months, I’d like you to buy £1,000 a month of that tracker fund that I’m putting my investment into. It’s called pound-cost averaging.

“Because you’re drip feeding the money in, that helps smooth out the short-term volatility of buying at the right moment. So if you’re worried about that volatility, you might want to adopt that tactic.”

Mr Lewis continued in saying that in reality nobody can predict the optimal time to invest. He said: “They are unknowable in the short term, but in a broad spread of investment over the long term, on the balance of probabilities, investing will outperform saving.

“So don’t let the volatility put you off, but you might want to spread the time that you’re putting the money in.”

Major changes to ISA allowances

Savers may also want to note that major changes to ISA allowances are on the horizon. Currently, you can deposit up to £20,000 each tax year, which can be divided as you wish between cash ISAs and stocks and shares ISAs.

From April 2027, you will only be permitted to save up to £12,000 as you choose. The remaining £8,000 will only be available for deposits into investment-based accounts.

Savers aged 65 and over will be exempt from the new regulations, retaining the existing £20,000 allowance. ISAs are entirely tax-free, with no tax liability on any interest earnings or investment gains within these accounts.

A POPULAR European city is set to bring back its ‘tourist tax’ for visitors this summer.

The city became the first metropolitan area globally to charge day-trippers an admission fee, which was introduced on April 25, 2024.

Day-trippers who book last-minute trips to Venice this summer will feel the biggest sting, with reservations that are made less than four days in advance costing €10 per person.

Holidaymakers who are a bit more organised, and book their trips more than four days ahead of their planned visit, will only have to pay €5.

Entering the city before 8.30am or after 4pm exempts you from paying, as does being a current resident or a Venetian-born visitor, a student, worker, or someone in the city on an overnight stay.

When you’ve secured your QR code via the booking platform, it will be checked at one of seven entry points across Venice, which includes Santa Lucia railway station.

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However, if you do not pay the fee and are not registered for exemption, or if you fail to produce the QR code, you could be fined anywhere between €50-300.

That’s equivalent to up to £260.

The number of pay-to-enter days is increasing from 54 to 60 this year.

However, last year’s stats show visitor numbers dropped only slightly over the summer, from an average of 16,676 in 2024 to 13,046 in 2025.

The new tax is to help incentivise tourists to visit the small Italian city on weekdays, rather than during the weekend.

But it faces opposition as critics argue that it would not teach visitors ‘respect’.

Giovanni Martini, the city council member, said: “Wanting to raise this to 10 euros is absolutely useless. It makes Venice a museum.”

There are now more tourist beds in Venice than official residents, whose numbers stand at an all-time low of 50,000.

The dates the fee will be in place this year

• April: 3, 4, 5, 6, 10, 11, 12, 17, 18, 19, 24, 25, 26, 27, 28, 29, 30
• May: 1, 2, 3, 8, 9, 10, 15, 16, 17, 22, 23, 24, 29, 30, 31
• June: 1, 2, 3, 4, 5, 6, 7, 12, 13, 14, 19, 20, 21, 26, 27, 28
• July: 3, 4, 5, 10, 11, 12, 17, 18, 19, 24, 25, 26

WASHINGTON — Most Americans still think their taxes are too high, according to recent polls, even after last year’s tax law fulfilled several of President Trump’s tax-related campaign promises.

In fact, a new Fox News poll indicates people are more upset about taxes than they were last year. The findings from the survey, which was conducted in late March, are another sign that Americans are on edge about their personal finances as the U.S. experiences a spike in inflation and sluggish economic growth. Other polling finds that frustration goes beyond personal tax obligations, with many believing that wealthy people and corporations are not paying their fair share, while others worry about government waste.

The surveys come after Trump and Republicans passed a massive tax and spending cut bill last year. The legislation enacted a range of tax breaks, including a boosted child tax credit and new tax deductions for tips and overtime. Tax refunds are up this season, and many households are expected to see more income from the Republicans’ tax legislation, but the Congressional Budget Office estimated it will ultimately give the largest benefits to the richest Americans.

Republicans have touted the law as evidence that they are making life more affordable for working families. But polling shows that many Americans may not be feeling the benefits, especially as their tax refunds get eaten up by higher prices.

Most say taxes are too high

About 7 in 10 registered voters say the taxes they pay are “too high,” according to the Fox News poll. That’s up from about 6 in 10 last year. The poll shows heightened concern among very liberal voters and Democratic men, but there has also been a sizable increase among groups that Republicans want to court ahead of the midterm elections, such as moderates, rural voters and white voters without a college degree.

Discontent about taxes has been rising for the past few years. Recent polling from Gallup, conducted in March, found about 6 in 10 U.S. adults say the amount of federal income tax they have to pay is “too high,” a finding that’s been largely consistent in the annual poll since 2023. That’s approaching the level of unhappiness found in Gallup’s polling from the 1980s through the 1990s, before President George W. Bush’s 2001 and 2003 tax cuts.

Now, about half of Democrats and about 6 in 10 Republicans say their federal income taxes are too high. Republicans tend to view their tax bill more negatively than Democrats, but Gallup’s polling shows that this gap often shrinks when a Republican is president.

Many believe the rich aren’t paying enough in taxes

Most Americans are troubled by the belief that some wealthy people and corporations don’t pay their fair share of taxes, according to a Pew Research Center poll conducted in January. About 6 in 10 Americans said each of those notions bothers them “a lot,” a measure that is largely unchanged in recent years.

By contrast, only about 4 in 10 U.S. adults in that poll said the amount they personally pay in taxes bothers them a lot.

About 8 in 10 Democrats are bothered “a lot” by the feeling that some corporations and rich people aren’t paying their fair share, the Pew survey found, compared to about 4 in 10 Republicans. Government spending is a bigger issue for Republicans, according to the Fox News poll, which found that 75% of registered voters — and a similar share of Republican voters — say “almost all” or “a great deal” of government funding is wasteful and inefficient.

That points to a perception problem for many Americans. Even if their own tax bill is manageable, the idea that the wealthy are underpaying — or that the government is wasting their dollars — bothers many. About half of Americans, 49%, in the Gallup poll say the income tax they will pay this year is “not fair,” which is in line with the record high from 2023.

Broad unhappiness with Trump’s tax approach

Americans’ tax frustration was rising before Trump re-entered the White House, but it’s still a problem for the president’s party — especially if Americans are not feeling the relief that he promised.

The Fox News poll found that about 6 in 10 registered voters, 64%, say they disapprove of how Trump is handling taxes, up from 53% last April. Disapproval has risen most sharply among independents, but also among Democrats and Republicans.

This aligns with a broader feeling that Trump isn’t doing enough to address inflation. Most Americans said Trump had hurt the cost of living “a lot” or “a little” in his second term, according to an AP-NORC poll conducted in January. Roughly 9 in 10 Democrats and about 6 in 10 independents said Trump has had a negative impact on the cost of living.

Less than half of Republicans, 43%, said Trump had helped the cost of living, while 33% said he hadn’t made a difference and only 23% said he’d helped.

Sanders writes for the Associated Press. The Fox News poll was conducted among 1,001 registered voters from March 20-23. The Gallup poll was conducted among 1,000 U.S. adults from March 2-18. The Pew Research Center poll was conducted among 8,512 U.S. adults from Jan. 20-26. The AP-NORC Poll was conducted among 1,203 U.S. adults from Jan 8-11.

BBC Morning Live expert Laura Pomfret has highlighted the top six easy access ISA accounts as savers face the ‘last chance’ to use the full tax-free allowance

A BBC finance expert has outlined which ISA accounts people should be considering as a ‘fresh start’ gets underway. With the new financial year having kicked off on 6 April, savers have the opportunity to make use of cash ISA accounts for up to £20,000 of tax-free savings — and crucially, it’s the final year before this allowance is reduced.

Appearing on BBC Morning Live, finance expert Laura Pomfret explained what people should be doing and highlighted which accounts are currently offering the most competitive interest rates.

She said: “It is a fresh start and there’s an opportunity to make the most of your money and we’re going to start with cash is because the ISA limit resets every year and we’ve got £20,000 per person that we can utilize within cash ISA, stocks and shares is lifetime is a little bit different, but it’s a way of growing your savings tax-free because you know saving is a really good thing and you do make interest on it but if it’s outside of an ISA you will have to pay tax on that interest.”

Those with savings held outside of ISAs remain liable for tax. Ms Pomfret further explained: “Most people get a personal savings allowance per year so if you’re a basic rate taxpayer you can earn £1,000 outside of an ISA tax free it drops to £500 when you are a higher rate taxpayer but basically this is why we should use our ISA allowance first because you can put £20,000 in and not have to worry about any interest that you make you don’t have to pay tax on it.”

Those with ISAs are set to face a significant change from 7th April 2027. She explained: “This is the last tax year before the allowance for a cash ISA drops to £12,000. So this is the last year that you get £20,000 that you can put into a cash ISA, and then going forward from 6th of April next year, 2027, it drops to £12,000, apart from if you’re 65 or over, you can save into a cash ISA, and you get the other allowance. So it’s important to maximise that this year while you can.”

Host Helen Skelton asked: “If you are in a position that you can save money, where should you put it right now?”

According to the BBC expert, there are six accounts worth considering for ‘easy access’ savings. She stated: “Easy access is where you can get it in and out usually without penalty, but you can have a look at the terms and conditions and these are some of the best. So, first up, we’ve got Trading 212 with a 4.6% interest rate.”

“It drops after the first year. Now, to be clear, that is an investment platform as well, but they do have a cash ISA that you can use, and they’ve got a 4.6%. You’ve then got, for example, Virgin Money with a 4.15%. You are limited to two withdrawals per year on that. So, it’s classed as an easy access, but there are some limits to withdrawals.

“So, Bank of Ireland UK 4.06%. The rate drops after a year with that one. It’s like a you know in a new rate, and then interest is paid annually. Leeds Building Society of 4.05%. You have to pay in a minimum of £1,000 to get that one. Um, Yorkshire Building Society, 4.05%, withdraw as often as you want. And then Tesco Bank, for example, 4.02%, the rate drops after a year. With that one, you can do it over the phone. The rest are all online or using the app. But these are just examples. These rates change quickly.”

Top ISA easy access accounts highlighted

• Trading 212 4.6%
• Virgin Money 4.15%
• Bank of Ireland UK 4.06%
• Leeds Building Society 4.05%
• Yorkshire Building Society 4.05%
• Tesco Bank 4.02%

She explained that, generally, individuals should check comparison websites for terms and conditions, with at least 4% interest being the crucial figure.

She continued: “You may get higher if you go for a fixed, but this is where your money can be fixed and locked away for one, two, three years. So this is about choosing what’s right for you.

“If you can afford to put some away and not need access to it, you might beat that rate with a fixed one. And obviously, as I said earlier, there’s also stocks and shares is you could look at a lifetime is if you fit the criteria, but ultimately getting it in tax wrapper is a great thing to do so that you can you know grow your interest tax-free.”

A NEW “holiday tax” will add £500million a year to the cost of UK breaks, business leaders warn.  

Chancellor Rachel Reeves has been urged not to allow mayors the power to raise funds by slapping a levy on overnight stays at hotels, campsites and B&Bs.

The Confederation of British Industry said it will drive up inflation, hamper investment and mean more red tape. 

Two hundred bosses from firms such as Butlin’s and Haven have written to Ms Reeves hitting out at the plans.

A consultation closed in February.

CBI head of tax policy Alice Jeffries said: “The Government should be sending a clear message that Britain is open for business and tourist visitors alike — not making it harder for people to spend their time and money here.” 

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She said the policy could apply a handbrake to investment, jeopardise jobs and squeeze margins for a sector facing one of the country’s heaviest tax burdens. 

UK Hospitality say it could add £100 to a two-week family stay based on £2 per person per night.  

Its boss, Allen Simpson said: “The Government should keep holidays relaxing, not taxing.”  

A Government spokesman said: “The final design of the visitor levy has not been decided.  

“We are clear it will ensure hugely popular areas benefit even more from tourism and mayors will have more money to invest in local priorities.” 

Caracas, April 9, 2026 (venezuelanalysis.com) – Venezuelan Acting President Delcy Rodríguez announced a series of upcoming reforms concerning Venezuela’s labor, tax, and pension frameworks during a press conference on Wednesday, April 8. 

Addressing her cabinet at Miraflores Presidential Palace, Rodríguez unveiled the creation of a commission made up of representatives from the state, business sector, active workers, and pensioners to “review labor conditions, address precariousness, and strengthen the social security system.”

Rodríguez acknowledged deficiencies in areas such as working hours, vacation benefits, and pensions, arguing that the present social security system is not sustainable due to insufficient contributions from active workers and the private sector.

The acting president disclosed an upcoming increase to workers’ incomes on May 1, but did not specify if it would come in the form of an adjusted minimum wage or non-wage bonuses. Rodríguez warned that salary adjustments must be “responsible” so that they do not trigger inflation.

Venezuelan authorities have discussed the prospect of reforming the 2012 Labor Law for several months, installing several dialogue commissions and public debates.

The existing labor law, approved by former President Hugo Chávez, prohibits unfair dismissal and outsourcing, enshrines the world’s third-longest maternity leave, guarantees the right to work for both women and people with disabilities, and extends retirement pensions to all workers, including full-time mothers and the self-employed. However, trade unions have pointed out that state institutions and the Labor Ministry have reduced their enforcement of the law in recent years.

Rodríguez’s public broadcast came hours before workers and unions staged a mobilization in Caracas demanding higher wages, improved working conditions, and the repeal of statutes that suspended several collective bargaining rights. In recent protests, workers have called for an end to the government’s bonus-based wage policy and the restoration of collective bargaining agreements.

Venezuela’s minimum wage has remained unchanged since March 2022 at 130 bolívares per month—equivalent at the time to around US $30 but presently worth approximately $0.27 at the official exchange rate.

With the economy heavily constrained by US sanctions, the Venezuelan government relied on non-wage bonuses—paid in bolívares but pegged at a fixed US dollar amount. A recent increase took the so-called Economic War Bonus, paid to public sector employees, to $150 a month. Coupled to a $40 food bonus, it brought the floor income to $190.

Public sector retirees and pensioners receive $130 and $60 Economic War bonuses, and do not access the food bonus.

For their part, business sector representatives have demanded changes to the labor law that reduce costs for employers before any adjustment to the minimum wage. Amid ongoing discussions with the International Labour Organization (ILO), private sector organizations proposed modifying Article 122 of the Labor Law, which establishes that severance payments are calculated based on the last salary earned by the worker.

Tax reform and state asset review

Rodríguez also announced the immediate convening of a National Economic Council tasked with designing a more “efficient” tax model aimed at making Venezuela “more competitive.”

“I hope that this council can produce a new tax model that can generate consensus among the different economic sectors in the country,” the Venezuelan leader stressed. 

She further enacted the Law on Streamlining and Optimization of Administrative Procedures, previously approved by the National Assembly, which seeks to modernize public administration by reducing bureaucracy and incorporating digital tools. According to Rodríguez, the law grants the executive authority to eliminate procedures, shorten timelines, and improve coordination between institutions.

In addition, she ordered the creation of a mixed commission to evaluate which state-owned assets have “strategic” importance, potentially opening some to private investment. However, she clarified that the hydrocarbons sector will remain under state control. The Cisneros group, one of Venezuela’s largest conglomerates, recently announced plans to raise funds ahead of an “expected wave of privatizations.”

The Venezuelan acting administration’s wholesale reform plans follow a recent pro-business overhaul of the Hydrocarbon Law in late January. The South American country’s National Assembly is likewise close to approving a new Mining Law with the goal of attracting foreign investment for extractive activities.

On Wednesday, Rodríguez additionally called for reforms to the country’s housing laws, claiming that there are half a million “frozen” properties presently that could be incorporated into the real estate market.

The acting president’s final announcement was a nationwide “pilgrimage” scheduled from April 19, Venezuela’s Independence Day, to May 1 to demand the lifting of US unilateral coercive measures against the Caribbean nation. While the Trump administration has issued selective and restrictive licenses to favor the participation of Western companies in the Venezuelan oil and mining sectors, wide-reaching sanctions remain in place.

Edited by Ricardo Vaz in Caracas.

BBC expert Rebecca Wilcox has warned people may want to opt out of Winter Fuel Payment from April 1 to avoid paying double monthly deductions back to HMRC due to a change this year

A BBC expert has warned that millions of individuals may need to take action on or after 1 April, or risk paying ‘double’ back to HMRC. Consumer specialist Rebecca Wilcox told BBC Morning Live viewers that anyone with a taxable income exceeding £35,000 might want to opt out of the 2026 winter fuel payment to avoid repaying ‘£33 each month’ due to the change.

She cautioned that from April, millions of households will be contacted by HMRC and informed they may need to repay their Winter Fuel Payment. She further clarified that some might want to act to prevent receiving the money and thus bypass the repayment process.

Ms Wilcox highlighted that a significant change later this year would result in people repaying double the full amount. On the topic of early cancellation, she explained: “If you know your personal income is going to be over the threshold of £35,000 then opt out of it for the next year and then you don’t have to worry about the next payment. You cannot do this until 1 April. The reason you’ll want to opt out is because the payments are going to double just for one year.

“This is because the taxman is in debt, he’s in arrears, because he’s paid out all this money and it wants to claw this money back. For one year it is going to charge everybody double on their repayments so it can get back into the normal process of taking the money from you and then returning it. It wants to have its money so for one year it is going to charge you, say you were doing, for example we were talking about, of £17 per month tax deductions, it’s going to charge you double, £34 per month for that one year and then it will go back to £17.

“So that’s why you might want to opt out if you know you’re going to be earning £35,000 and above. If your income then drops just be aware you will have to opt back in to receive the winter fuel payment.”

Ms Wilcox told BBC Morning Live viewers: “The Winter Fuel Payment was a lump sum that was paid out to help you with your fuel bills during the cold months of November and December. That’s when the payments were made. What happened was they paid everybody who was over the age threshold. You were eligible to keep it if you were born before 22 September 1959 – that’s for England, Wales and Northern Ireland. Or the 21 September 1959 in Scotland.

“If you’re born before that and you earn £35,000 exactly and under you can keep it. If you earn even a penny over the £35,000 of your personal, taxable income, then you will need to pay back this payment. The payment was between £100 and £300 and that number was calculated on your circumstances, your household circumstances and how old you are.

“For some this is going to be the first they’ve heard about repayment. And there’s a reason that this is happening and it’s because HMRC can do many things but it cannot predict the future. It has no idea how much you’re going to earn in that future tax year. So it’s just given it to everybody and then when it knows how much you’ve earned whic” h is April, it will reclaim the funds that were paid to you in November.

“If you earn over £35,000 and are within the age bracket you will be required to pay this back in full.” She noted that HMRC has an online checker available for those uncertain whether they exceed that threshold.

Winter Fuel Payments, referred to in Scotland as Pension Age Winter Heating Payments, are annual financial grants designed to assist with winter energy costs. For the current payment, eligibility extends to individuals born before 22 September 1959 in England, Wales or Northern Ireland, and before 21 September 1959 in Scotland.

The payment amount varies from £100 to £300 depending on age and household situation. HMRC cannot determine final income until the tax year concludes. Since payments must be distributed before winter, the system operates by paying everyone of qualifying age initially, then contacting those who exceed the income threshold afterwards.

In most instances, the money will be recovered automatically through the tax system. HMRC will modify the individual’s tax code in the 2026 to 2027 tax year. The repayment shows as an underpayment, resulting in slightly higher tax deductions each month.

No interest is charged on the sum being repaid. For instance, someone who received £200 might see their monthly income reduced by approximately £17 while the repayment is collected.

Individuals who complete a Self Assessment tax return will instead have the repayment added to their tax bill for the 2025 to 2026 tax year. Anyone who believes the calculation is wrong can dispute the decision with HMRC.

From 1 April 2026, households can decline the 2026 to 2027 payment by contacting the Winter Fuel Payment Centre or filling in a form online. You will need your National Insurance number to do this.

Once you opt out, you will not receive future payments unless you choose to opt back in. The primary reason to opt out if you expect your income to remain above the threshold is because from the 2027 to 2028 tax year, HMRC plans to recover payments in advance rather than in arrears, meaning deductions could be roughly double.

For a typical £200 payment, this could mean around £33 a month being taken through the tax system instead of about £17. The deductions are expected to return to the lower monthly amount in the following tax year.

Depending on where people stay, they could be paying more than £13 a night in the municipal surcharge

UK travellers to Spain have been told of a ‘doubling’ of a charge for all tourists going to a popular hotspot from today. It has been reported in Spain that the doubling of the municipal surcharge comes into effect on April 1.

Depending on the type of accommodation, tourists may pay up to €15 more per night in Barcelona. This is due to an increase in the tourist tax on the one hand now ranging from €1 to €7 depending on the category of accommodation and a municipal tax which rises from €4 to €8.

Applicable to stays in hotels, hostels and short-term rentals, these taxes can, when combined, amount to up to €15 per night per person, LeFigaro reported.

The measure was announced in March 2025 but was only approved by the Catalan parliament a few weeks ago. Barcelona City Council has voted in favour of increasing the council tax by one euro per year until 2029. The aim is to tackle the housing crisis. Residents regularly protest against rising rents, which they believe are partly due to the growing number of short-term rentals such as Airbnb.

In a four-star hotel – which accounts for nearly half of the local hotel stock – a two-night stay for a couple could therefore cost up to €45 more. Cruise ship passengers must also pay these taxes: they will pay €12 – instead of €8 – if they disembark for more than twelve hours, or €14 (instead of €11) if they stay for less than twelve hours. One exception remains for a specific category of accommodation: hostels listed in the Generalitat de Catalunya’s Youth Hostel Register, for which the fee remains at €1.

With these new rules, the Autonomous Community of Catalonia hopes to raise 200 million euros a year. On its website, the Catalan government states that “25% of the revenue from the tourist tax will be allocated to the Generalitat’s housing policies, whilst 75% will be channelled into the Tourism Promotion Fund, [in particular] for housing policies [and] economic development policies.”

With the new regulation, the tax will rise to seven euros per night in five-star accommodations in Barcelona and to 3.40 euros in four-star accommodations. It will also be more expensive for cruise passengers, especially those disembarking in the Catalan capital. Those staying for less than 12 hours will pay six euros in Barcelona and 4.50 euros in the rest of the ports in Catalonia , 20 Minutos reported.

The tax increase will be phased in over two years. The first increase will take place this April, while the remainder will be implemented a year later, in April 2027. At that point, the tourist tax will be completely doubled. However, in Barcelona, the increase will be more immediate and will begin this month to address the high tourist pressure the city experiences, unlike the rest of Catalonia.

The revenue from the tourist tax will be divided into two parts. 25% of the total income will be allocated to housing policies of the Generalitat (Catalan government), one of the main pillars of Catalan President Salvador Illa’s policies. The remaining 75% of the revenue will be integrated into the Tourism Promotion Fund.

The increase in the tourist tax in Catalonia already has the support of a majority of the parliamentary groups, as well as the backing of a large part of the population. This is especially true in Barcelona, where overtourism has wreaked havoc on both housing and community life. In fact, in the Catalan capital, there have already been demonstrations by residents against the massive influx of visitors, and proof of this is that 76.7% of the population says the city has reached its maximum capacity for receiving tourists.

These data are reflected in the latest survey on tourism perception in Barcelona, published by the city council itself, in which 56% of residents support the increase in the tourist surcharge.

Public support for the increase in the tourist tax contrasts sharply with the total opposition from the Catalan tourism sector. Following the announcement of the agreement between the PSC, ERC, and Comuns parties, business owners in Catalonia’s tourist accommodation sector expressed their “total and unanimous rejection.” The employers’ association Confecat asserted that the measure is “improvised, lacking strategic rigour, disconnected from the country’s real needs, and driven solely by revenue collection.”

Furthermore, the Catalan Federation of Tourist Apartments (Federatur) warned that the tax increase will lead to a loss of competitiveness for the region and make Catalans’ holidays more expensive. This position is also supported by other employers’ associations, trade groups, and federations within the sector, such as Foment del Treball, the Barcelona Hotel Guild, Pimec, and the Barcelona Tourist Apartment Association.

According to Jordi Clos, president of the Hotel Association, there is some concern among representatives of the tourism sector about how the tax increase will affect business. “It will be necessary to monitor the impact this measure may have to prevent a significant and lasting decline,” he stated after the Catalan Parliament approved the increase in February.

HOLIDAYS are getting more expensive from today with a rise in Air Passenger Duty (APD).

ADP, first introduced in 1994, is the ‘tax’ that passengers have to pay when flying from the majority of UK airports, which is built into the cost of flights.

From today, the rates have increased, and how much you pay depends on the final destination and the class of travel.

Band A is any destination abroad whose capital city is 2,000 miles or less from London, which covers all of Europe and parts of North Africa.

For example, flying in economy to a short-haul destination like Spain, Greece or Portugal has some of the lowest rates from £15.

A family of four could therefore expect to pay £60 under the new rules if travelling in economy.

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However, this can go up to £32 per passenger depending on the class they are flying in.

When flying further afield, or in a premium economy or higher, the tax goes up.

Band B is any destination whose capital city is 2,001-5,500 miles from London, so long-haul destinations such as Egypt or the Maldives.

These range from £102 to £244 – so it would be £408 for a family of four in economy flying to resort towns like Sharm El Sheikh.

Band C is for destinations whose capital city is over 5,500 miles from London.

These include Bangkok, Singapore, Hong Kong, Tokyo, Buenos Aires and all Australia.

The rates range from £106 to £253 – meaning it could be more than £1,000 for a family of four at the top rate.

There is an even higher rate which in line with Band C can be as high as £1,141 – but this applies to private jets.

UK domestic flights range from £8 to £16 depending on class.

The government will review the rates of APD again on April 1, 2027.

There aren’t many ways to avoid paying APD, but if you still want to go abroad and avoid the extra fee, there are a few ways to do so.

Passengers under 16 who are travelling in basic economy are exempt from paying APD – although if they fly premium economy or above, they will be charged.

One is to fly into the UK on one plane and out within 24 hours on another.

But you need to have them both included in the same ticket.

Or, fly on a route from a UK airport that is not subject to APD.

Scottish Highlands and Islands region are exempt like Inverness, Oban, Sumburgh and Stornoway.

Direct long-haul flights from Northern Ireland are also exempt as long as the first part of the journey is to a destination not in the UK or in Band A.

When the departure tax was first introduced, it was just £5 European flight and £10 on long-haul services.

For how to save money on holiday, TUI expert reveals how to save hundreds on the same break – as well as the little-known money saving tool.

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Southwest Airlines has come under fire for its controversial policy change which can require plus-size passengers to purchase an extra seat at the airline’s “sole discretion”, with furious travellers branding it “discrimination”

A so-called “fat tax” aimed at plus-size airline passengers has left travellers furious and feeling “stressed”. Major carrier Southwest Airlines has found itself at the centre of controversy over its contentious new policy, which can compel passengers to shell out for an additional seat at its “sole discretion”.

The policy change comes after 30 years of letting plus-sized passengers request a complimentary extra seat at the gate, and reimbursing those who purchased one in advance – a practice that has now been scrapped.

Under the new rules, customers will only receive a refund for a second seat if their flight departs with at least one empty seat, while those who failed to book ahead can be forced to purchase another ticket on the spot.

In a statement addressing the policy change, a Southwest spokesperson said: “To ensure space, we are communicating to customers who have previously used the extra seat policy that they should purchase it at booking.”

On the airline’s website, the updated “customer of size” policy reads: “Customers who encroach upon the neighboring seat(s) must purchase the number of seats needed. Customers should purchase the seats prior to travel to ensure adjacent seats are available.

“The armrest is considered to be the definitive boundary between seats; you may review information about the width of Passenger seats. In addition, Southwest may determine, in its sole discretion, that an additional seat is necessary for safety purposes.”

But passengers are far from happy. Influencer Samyra Miller turned to TikTok to criticise the policy, branding it a “fat tax”.

She said: “They’ve been doing this way before their little new policy was even supposed to go into effect because, remember, they kicked me off my flight in December.”

She revealed a Southwest representative privately messaged her after she shared her negative experience online and continued: “My primary concern with that whole back and forth with Southwest was for how they were about to treat their plus size customers in changing their customer of size policy.”

Samyra referred to the wording of the policy on the Southwest website but claimed, at the airport, “they’re just eyeing people”. The content creator went on: “There is no criteria that they are using to determine who has to pay for an extra seat.”

Describing it as “discrimination”, Samyra continued: “It is literally just at the discretion of and fatphobia of whoever is working that day.”

In the comments section, people were eager to share their opinions. One TikTok user said: “This is absolutely horrible!”

Another said: “We have a company trip in May and I told my boss to use any other airline BUT Southwest.”

A third posted: “I have a flight in 5 days I AM STRESSED I DON’T have more money to buy an extra seat”.

While another added: “This isn’t fair at all”.

Fellow TikTok user Sassa Ésmith uploaded a video prior to a Southwest flight and added text overlay which read: “Shoutout to Southwest for contributing to my traveling anxiety with your superfluous ‘customer of size policy'”.

In the caption, she said: “Spent my entire lobby time mentally preparing for a random gate agent to tell me I gotta buy an additional seat for a 40 minute flight”.

Passengers should act now before flights get more expensive

Passengers thinking of booking flights from the UK should book before Wednesday if they want to avoid an imminent cost increase. Air passenger duty (APD) is going up on April 1, making flights more expensive. As the duty forms part of the cost of each airline ticket, carriers say the adjustment is likely to result in higher fares on some routes, Majorca Daily Bulletin reports.

The amount of air passenger duty per person depends on several things, including ticket class and how far the country’s capital city is from the UK. The amount goes up significantly if you sit in anything but basic economy and if you fly to a country whose capital is more than 2,000 miles away from London.

Travel expert Simon Calder explains that the levy “is unique to the UK and a topic of much controversy”. He adds: “Chancellor Rachel Reeves has imposed an above-inflation increase from April 1, 2026 and one in line with the retail prices index a year after that. By the summer of 2027, a family of four flying premium economy to Orlando will pay over £1,000 in tax for leaving the UK in anything better than basic economy.”

Four different categories of destination

• UK domestic flights
• Band A: Countries where capital city is 2,000 miles or less from London — this covers all of Europe
• Band B: Capital city is 2,001-5,500 miles from London — includes most long-haul destinations
• Band C: Capital city is over 5,500 miles from London — includes Bangkok, Singapore, Hong Kong, Tokyo, Buenos Aires and Australia.

What are the rates?

From April 1, 2026, they will all rise to the following:

• UK domestic: £8 (economy) or £16 (anything but economy)
• Band A: £15 or £32
• Band B: £102 or £244
• Band C: £106 or £253

Before April 1, 2026 the rates are as follows:

• UK domestic: £7 or £14
• Band A: £13 or £28
• Band B: £90 or £216
• Band C: £94 or £224

So you can see, the increases are not huge but could add significant costs to the price of a holiday for a family of four to somewhere that is more than 2,000 miles away.

APD does not apply to children under 16 travelling in basic economy but is payable for all children over two travelling in premium classes.

How much APD will I pay?

A family of four with children between two and 15 will pay the following APD from April 1, 2026:

• UK: £16 in basic economy, £64 in premium economy or better.
• Europe: £30 or £128
• Most long-haul destinations: £204 or £976
• Ultra-long-haul destinations: £212 or £1,012

But a family of four with children aged 16 and over will pay the following APD from April 1, 2026:

• UK: £32 in basic economy, £64 in premium economy or better
• Europe: £60 or £128
• Most long-haul destinations: £408 or £976
• Ultra-long-haul destinations: £424 or £1,012

As you can see, the year-on-year increases are not that significant for shorter flights, but can add up more if you are taking older children on longer flights. But if you feel that you want to save every pound possible, if you get your flights booked before Wednesday then you’ll save on APD.

Tourism chiefs are predicting a near two million jump in the number of Brits holidaying at home this Easter

Around 12.5 million Brits are planning an Easter staycation – as the Middle East war deters families from jetting abroad.

The number of people who say they intend to holiday in the UK over the Easter weekend is up sharply from 10.6 million last year. The near two million surge will help deliver a bumper £4.8billion boost to tourism and the wider economy, according to VisitEngland, which published the data.

The number saying they hope to holiday at home dwarfs the estimated 7.4 million who are planning a trip abroad this Easter. Of those definitely aiming to take a staycation during the Easter break, the majority will be short breaks of one to three nights.

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It came as VisitEngland’s Trip-Tracker revealed that more than a quarter of those it surveyed, 28%, were worried about the impact of the Middle East conflict on their upcoming travel plans in April and May. The top concern was having less money to spend due to the economic impact. There have already been fears of air fare price hikes and possible flight cancellations.

The number of people planning an Easter staycation this year also marks a big jump on 2024’s 11 million, and nearly double the 6.5 million in 2023. A further 5.1 million people surveyed said they were undecided about whether to take an overnight holiday trip in the UK during the Easter weekend. The top reasons were “waiting to see if I can afford it” and “waiting to see what the weather is like”. Forecasts for the weather suggest it will be a mixed bag next week, but with settled conditions over the Easter weekend itself.

However, those driving for days out and holidays in the UK face a hit to the wallet from soaring fuel prices on the back of the Iran war. The nationwide average for unleaded has jumped to 150p a litre, up 17p since before the conflict erupted. Diesel drivers have been hit even harder, with diesel now averaging 176.68p per litre, a leap of 34p in recent weeks.

RAC head of policy Simon Williams said: “Petrol has now broken through the unwelcome milestone of 150p a litre (150.11p), something drivers haven’t seen since mid-May two years ago while the average price of diesel is now approaching 180p at 177.68p.

“With the long-awaited four-day Easter weekend almost within touching distance, the cost of getting away by car is going to be noticeably higher this year.

“And with average prices at motorway services at 166p for unleaded and 182p for diesel, drivers on long journeys will need to plan very carefully where they refuel. The best advice remains to shop around for fuel and make use of free apps such as myRAC to never pay a penny more for fuel than is absolutely necessary.”

Some families may also think twice given another wave of bill increases – including water and council tax – from the start of April, and warnings that food price inflation could jump again.

Kate Allen, owner of Devon-based Finest Stays, said: “For now, we’re not seeing a slowdown. Bookings are up around 10% on this time last year, with more guests opting to stay in the UK rather than travel further afield to places like Dubai.

“The Great British holiday is very much in favour, as we’re a nation that prioritises getting away, and domestic breaks are benefiting from that shift. That said, there’s a nervous undercurrent. Fuel costs feel like a slow leak, pressure building rather than bursting.

“We’re expecting more guests to postpone or cancel, and that’s where it gets tricky. Terms and conditions may cover it, but it doesn’t make refund conversations any easier when the wider impact on businesses and homeowners isn’t fully understood.”

Tourism Minister Stephanie Peacock said: “It is wonderful that so many people are planning on having a staycation this Easter weekend, whether that’s spending time visiting our stunning landscapes and coastlines or exploring our vibrant towns, cities and cultural landmarks. Supporting domestic tourism helps local areas thrive – fuelling small businesses, boosting pride, and strengthening community economies.”

VisitEngland chief executive Patricia Yates said: “Tourism businesses and destinations will be looking to the critical Easter weekend for much needed cash flow so it’s encouraging to see so many of us are planning a holiday at home, with its ease, convenience and certainty of budgeting. We also know that the cost of living remains a concern for holidaymakers, leaving it difficult too for businesses to plan in advance.

“We have incredible activities, experiences and places to stay for all tastes and budgets, and there really is nowhere quite like Britain in springtime. From walks in our beautiful countryside with the promise of a pub lunch or discovering contemporary culture in our buzzing cities to enjoying fish and chips on the beach, there is something for everyone. So, a rallying cry to please go out and explore the amazing destinations and events here on our doorstep this spring. Tourism businesses will be very pleased to welcome you, you will have an amazing time and create memories to make you smile all year.”

It came as trade body UKHospitality stepped up criticism of what has been dubbed a new “tourist tax”. Labour is proposing to allow regional mayors in England to introduce a “visitor levy” on overnight stays, as already happens in some European countries. While details of how it would work are still to be finalised, it could either be a per head charge or a percentage of the cost of the stay. Small businesses – from guesthouses to B&Bs – say it could lead to closures.

Modelling by Oxford Economics, commissioned by UKHospitality, which assumed a 5% levy, warned it could lead to a £1.6billion tax increase for holidaymakers by 2030, and a £2.2billion hit to the economy.

Published on
25/03/2026 – 15:39 GMT+1

Lille will host the European Custom Authority, a new decentralised agency tasked with supporting and coordinating national customs administrations across the bloc.

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The decision was made on Wednesday in Brussels, after EU lawmakers from the European Parliament and the Council of the EU voted on the matter in three rounds.

“France is one of Europe’s leading customs nations, [considering] one in three parcels entering the EU passes through French territory,” Dutch MEP Dirk Gotink, rapporteur on the customs reform, said in a press statement.

“Lille’s strategic location at the crossroads of Europe makes it the natural hub for this authority,” the EU lawmaker continued.

Italy, with Rome as its candidate, was the runner-up in the voting rounds.

Other contenders included Belgium with Liège, Croatia with Zagreb, the Netherlands with The Hague, Poland with Warsaw, Portugal with Porto, Romania with Bucharest, and Spain with Málaga.

Customs management and trade have taken on renewed urgency after former US President Donald Trump imposed sweeping tariffs shortly after taking office.

Amid growing global trade uncertainty, the EU has stepped up engagement with international partners. This week, it signed a new agreement with Australia, while the EU–Mercosur deal is set to apply provisionally from 1 April.

The establishment of the new authority is part of the overall reform of the EU customs framework, with key negotiations expected to take place on Thursday.

The reform also aims to tackle the rising pressure from increased trade flows, fragmented national systems and the rapid rise of e-commerce.

The agency is expected to be set up in 2026 and could become operational in 2028 according to a draft schedule which is still be subject to significant changes.

FAMILIES are facing a whopping £1.6billion tax blow on the “great British holiday”, a new report has warned.

The findings from industry body UKHospitailty, with figures crunched by Oxford Economics, show that a proposal to slap a five per cent levy on accommodation could “decimate” the industry.

It comes as Labour Government has been proposing to allow local authorities the right to tax overnight stays in holiday parks, campsites, B&Bs and hotels as part of a new holiday tax.

UK Hospitality claim the proposed levy would slash GDP – a benchmark for the country’s economic health – by £2.2billion.

It also warned it would result in a £1.8billion reduction in hospitality spending.

The group also claimed that it would lead to the loss of 33,000 job roles in areas of the UK where there are few alternative employment opportunities.

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‘Demoralising’ holiday tax will hit family breaks in the UK, warns Labour MP

Allen Simpson, chief Executive of UKHospitality, said the tax would make staycations “more expensive and decimate tourism.”

“There are no winners from a holiday tax. From coastal communities and city centres to local guesthouses, pubs and taxi firms, the impacts are stark and indiscriminate.

He added: “Taxes up, jobs lost and our high streets hit once again. Holidays are for relaxing, not taxing. The government should keep it that way and stop the holiday tax.”

The charge, which could be applied to hotels, Airbnb-style accommodation and short lets, could amount to a whopping £1.6billion holiday tax on tourists by 2030, according to the figures

Meanwhile, Simon Palethorpe, chief of Haven, said it would mean fewer UK holidays resulting in “less investment and fewer jobs, often in areas where there are few alternative employment opportunities”.

He added: “In the UK, visitors are already paying double the VAT rate of the most popular overseas holiday hotspots. The UK is a great place to visit and we should be encouraging people to do so, not adding extra taxes.”

The government launched a consultation on the tax, with final views submitted last month.

Other measures that also could be introduced include a £2 tax per person per night on staycations.

However, it is worth noting that it will be up to individual mayors to decide whether or not to propose a charge for visitors to their towns or cities.

Government has previously said the charge will help improve local tourism infrastructure, public services.

But it has faced major pushback, with a Labour MP warning last week it will hit family breaks in the UK.

Emma Lewell wrote to Chancellor Rachel Reeves raising “serious” concerns about the proposals.

The South Shields MP said: “When households are already under pressure with the cost of living rises, this is demoralising and unaffordable.

“Families need a break. Taxing their break is a step too far.”

Major firms including Butlin’s, Hilton and Travelodge have responded to the proposals.

They say the plans would drain cash from local businesses and make the UK less competitive.

A Government spokesperson previously said it expect any new charges to be modest, and for mayors to consider the “right level for their area.”

The Sun has launched a campaign to show how the tax could affect YOU, to show your support go to our website at StopTheHolidayTax.uk.

WASHINGTON — The U.S. economy was supposed to start the year with a bang, fueled by a jump in tax refunds from President Trump’s tax cut legislation. But soaring gas prices are on track to eat up those refunds, leaving most Americans with little extra to spend.

“Next spring is projected to be the largest tax refund season of all time,” Trump boasted in a prime-time speech in December intended to address voter concerns about the economy and stubbornly high prices, though exaggerating the anticipated refunds.

But that was before the Iran war, which the U.S. and Israel began on Feb. 28. Oil and gas prices have skyrocketed since then, with the nationwide average price of gas reaching $3.94 Sunday, up more than a dollar from a month earlier.

Gas prices are likely to remain elevated for some time, even if the war ends soon, because shipping and production have been disrupted and will take time to recover. Economists now expect slower growth this spring and for the year, as dollars that are spent on gas are less likely to be used for restaurants, new clothes or entertainment.

Lower- and middle-income households are likely to be hit particularly hard, because they receive smaller refunds and spend a greater proportion of their earnings on gas.

“The energy shock is to going to hit those who have the least cushion,” said Alex Jacquez, chief of policy at the left-leaning Groundwork Collaborative and a former economist in the Biden White House. “And it doesn’t look like those tax refunds are going to be here to save them.”

Neale Mahoney, director of the Stanford Institute for Economic Policy Research, calculates that gas prices could peak in May at $4.36 a gallon, based on oil price forecasts by Goldman Sachs, followed by slow declines for the rest of the year. The notion that gas prices decline much more slowly than they rise is so ingrained among economists that they refer to it as the “rocket and feathers” phenomenon — rising like a rocket before falling like a feather.

In that scenario, the average household would pay $740 more in gas this year, nearly equal to the $748 increase in refunds that the Tax Foundation has estimated the average household will receive.

Through March 6, refunds have risen by much less than that, according to Internal Revenue Service data: They have averaged $3,676, up $352 from $3,324 in 2025. Still, average refunds could rise as more complex returns are filed.

Other estimates show similar impacts. Economists at Oxford Economics, a consulting firm, estimate that if gas prices average $3.70 a gallon all year, it will cost consumers about $70 billion — more than the $60 billion in increased tax refunds.

The gas price spike comes with many consumers already in a precarious position, particularly compared with 2022, when gas prices also soared because of Russia’s invasion of Ukraine. At that time, many households still had fattened bank accounts from COVID-19 pandemic-era stimulus payments and companies were hiring rapidly and sharply lifting pay to attract workers.

Now, hiring is nearly at a standstill and Americans’ saving rate has steadily fallen in the last few years as many households borrow more to sustain their spending.

“When you start looking across the perspective from a consumer side, you’re seeing people who have maxed out their credit cards, are using ‘buy now, pay later’ to purchase their groceries,” said Julie Margetta Morgan, president of the Century Foundation think tank. “They’re making it work for now, but that can fall apart quite quickly.”

The consequences are likely to worsen the “K-shaped” phenomenon in the U.S. economy, analysts said, in which higher-income households have fared better than lower-income households. The bottom 10% of earners spend nearly 4% of their incomes on gasoline, Pantheon Macroeconomics estimates, while the top 10% spend just 1.5%. The Trump tax breaks also benefited the wealthiest taxpayers most.

For now, most analysts still expect the U.S. economy to expand this year, even if more slowly, given the gas price shock. Higher gas prices will probably worsen inflation in the short run, and over time weaker spending will also slow growth.

American consumers and businesses have repeatedly shaken off shocks since the pandemic emergency — soaring inflation, rising interest rates, Trump’s tariffs — and continued to spend, defying concerns that the economy would tip into recession. Many economists note that the proportion of their incomes that Americans spend on gas and other energy has fallen significantly compared with a decade ago.

Data from the Bank of America Institute released Friday showed that spending on gas on the bank’s credit and debit cards shot 14.4% higher in the week ended March 14 compared with a year ago. Before the war, such spending was running 5% below the previous year, a benefit to consumers.

Spending on discretionary items — restaurants, electronics and travel — is still growing, the institute said, evidence of consumer resilience. But there is little sign it is accelerating, as many economists had hoped.

“The longer these gasoline prices persist, the more that will gradually sap consumer discretionary spending,” said David Tinsley, senior economist at the institute.

Other analysts expect growth will slow because of the war. Bernard Yaros and Michael Pearce, economists at Oxford Economics, forecast that the U.S. economy will grow just 1.9% this year, down from an earlier estimate of 2.5%.

“We had anticipated a lift in spending from a bumper tax refund season,” they wrote, “but the rise in gasoline prices, if sustained, would more than offset that boost.”

Rugaber writes for the Associated Press.

March 20 (Asia Today) — This commentary is the Asia Today Editor’s Op-Ed.

With Seoul apartment values posting their biggest increase in five years, concerns are growing that a heavier property tax burden will spill into the Jeonse and monthly rental markets. Jeonse is a unique Korean housing lease system where tenants pay a large lump-sum deposit instead of monthly rent, and get it back at the end of the lease.

Landlords are already showing signs of passing higher holding costs on to tenants through steeper rents and larger Jeonse deposits. If the government now moves to raise taxes further, including on single-home owners whose properties are deemed non-residential, it risks worsening instability in the rental market.

According to the Korea Real Estate Board, Seoul apartment Jeonse prices rose for a 57th straight week as of the second week of March, with the cumulative increase reaching 4.79%. Monthly rents climbed even faster. In February, the average monthly rent for an apartment in Seoul stood at 1.515 million won, or about $1,010, up 12.5% from a year earlier.

The sales market, by contrast, has cooled. Apartment prices in Seoul’s three Gangnam districts and Yongsan-gu have fallen for four consecutive weeks. But the Jeonse and monthly rental markets are becoming more unstable as new apartment supply shrinks and listings for existing units tighten. The shortage has been aggravated by the reinstatement in May of a capital gains tax surcharge on owners of multiple homes.

Against that backdrop, higher officially assessed home values are likely to add even more upward pressure on rents. The Ministry of Land, Infrastructure and Transport said this year’s official values for multifamily housing in Seoul rose 18.67% from a year earlier. That was the third-largest increase on record, behind only 2007 and 2021, both periods of sharp home-price gains.

In the three Gangnam districts and the Mapo-Yongsan-Seongdong area, where assessed values climbed more than 20%, many homeowners could see property tax bills rise by more than 50%. Even without a revision to tax law, the annual burden can increase by as much as 50%. Once local education taxes and the rural special tax are included, the actual increase can be even greater.

The number of single-home owners subject to the comprehensive real estate tax also rose sharply. Homes assessed above 1.2 billion won, or about $800,000, now total 487,362, up 170,000 from a year earlier.

For many elderly homeowners living on national pension payments, interest income or dividends, annual property taxes running from several million won to tens of millions of won can be difficult to absorb. Assessed values are also used to calculate regional health insurance premiums and can affect existing pension burdens, making the overall impact even heavier.

South Korea has already seen what happens when landlords shift tax costs onto tenants. During the previous progressive administration, rising tax burdens contributed to sharp increases in monthly rents and Jeonse deposits. Past data show that when the property tax rate rises by 1 percentage point, about 30% of the additional burden is passed on through Jeonse deposits and roughly 40% to 50% through monthly rent.

Even so, the government is considering higher property taxes or smaller long-term holding deductions to curb what it calls high-value single-home investments used for non-residential purposes. But real estate taxation can have broad collateral effects. If efforts to suppress housing prices go too far, tenants may once again end up paying the price.

The government should scrap any reckless plan to raise property tax rates on single-home owners.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260319010005978

California’s economy might see a boost from the state’s expanded film tax credits, but local lawmakers say it’s not enough.

Despite Gov. Gavin Newsom authorizing a $750-million film and TV tax credit program last summer, the impending merger between Paramount and Warner Bros., and the projected budget cuts that are expected to follow, has reignited fears about Hollywood jobs and U.S.-based productions.

“State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,” U.S. Sen. Adam Schiff (D-Calif.) said during a news conference Friday morning.

“We must act, and the urgency could not be greater,” he said. He revealed he is working on a bipartisan federal film incentive proposal that would be competitive with what other countries are offering for film productions.

He said the program isn’t about Hollywood’s stars; it’s about the jobs that productions create, including roles for set designers, carpenters and lighting crews.

“These are the people who make that magic happen. We want to keep those jobs here, and many of us are deeply concerned about what this potential merger will do to those jobs,” Schiff said.

Earlier this week, the California Film Commission revealed that 16 shows had recently received tax credits for filming in the state. The projects represent $871 million in qualified in-state spending and are expected to generate $1.3 billion in economic activity in California. Schiff said the state tax credit has generated more than $29.1 billion in motion picture production wages and supported more than 220,000 jobs.

Even as shows start to see gains in Southern California, Los Angeles film activity was still down 13.2% from July through September when compared with the same period in 2024. The downward trend extends the loss of 42,000 jobs in L.A. between 2022 and 2024, the continued suffering of local sound stages and the offshoring of productions internationally.

“Federal policymakers must act to level the playing field and make the U.S. film and television industry more competitive on the global stage,” said Matthew Loeb, the president of the International Alliance of Theatrical Stage Employees. “A globally competitive labor-based and tax incentive is. For us, production that supplements state incentives is essential to return and maintain film and television jobs in America.”

HBO Max’s medical drama “The Pitt” is filmed at one of Warner Bros. soundstages in Burbank and it’s one of the shows benefiting from California’s tax incentive.

Noah Wyle, the star and executive producer of the show, said during the news conference that “it’s really hard to shoot a TV show in Los Angeles, and it’s really expensive, prohibitively” — so adopting an economic model that allows productions to take full advantage of the California tax incentive was essential to “The Pitt” filming in L.A.

“As an Angeleno with generational roots to this city and as a seasoned member of its creative community, advocacy for Los Angeles-based production is something that is very close to my heart,” Wyle said.

“‘The Pitt’ has blessedly become proof of that speculative concept. I’m happy to report we’ll commence shooting season three this summer, and that a rising tide has indeed lifted all boats in season one under the 3.0 tax program,” he added.

The show received a 20% tax rebate on many above-the-line costs. The budget for one episode was approximately $6.6 million, so the show received a rebate of about $760,000 per episode. By the end of season one, the production was able to save over $11 million. Wyle estimated that the first season of “The Pitt” contributed around $125 million toward California’s gross domestic product.

Rep. Laura Friedman (D-Glendale), who is working with Schiff on production tax incentives, said that because California is already seeing benefits from the current program, there’s no reason it wouldn’t work nationally. Friedman added that tax incentives are a common practice among many industries in the U.S.

“Hollywood is not asking for special treatment. Whether it is computer chips, the energy sector or pharmaceuticals, this is something that is standard in the United States,” said Friedman. “In terms of our nation, Hollywood and its ability to tell the story of America, it is something worth saving.”