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Oregon falls mostly in middle of the pack in national tax rankings

When it comes to taxes, personal and corporate, where does Oregon rank nationally? About middlin' according to a new report by the Tax Foundation, which tracks such matters.

Oregon's "tax freedom day" -- the date by which average wage-earners have made enough to pay their tax bills -- falls on April 8, ranking it 23rd earliest among the 50 states. As for overall state and local tax burden, Oregon falls smack dab in the middle at 25th.

For obvious reasons, Oregon ranks highest on personal income taxes and lowest on sales taxes. It ranks relatively low for corporate taxes. In overall "business climate" rankings, Oregon comes in 13th, according to the report.

The report has a pretty complete breakdown of taxes around the nation, from gas, to cigarette to the usual suspects of income, property and sales. How those statistics end up being used -- well, we'll wait to see.

– Harry Esteve

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Oregon falls mostly in middle of the pack in national tax rankings

Dutchman helps fellow expats find their feet in Moscow – Video

15-02-2012 04:43

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Dutchman helps fellow expats find their feet in Moscow - Video

China: Cheesy Buddhism; LEDs obsession; trance with expats; firecrackers over the city – Video

15-02-2012 19:57

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China: Cheesy Buddhism; LEDs obsession; trance with expats; firecrackers over the city - Video

Eurozone crisis: what should expats do?

Britons living in the eurozone, or with holiday homes or other assets located there, will have watched the continuing saga of the possible collapse of the euro with increasing alarm

Commentators build up the prospect of a country such as Greece exiting the euro, only for headlines the next day to be more positive about the long-term survival of the single currency. The prospect of one of the “Club Med” countries leaving the euro, namely Greece, Portugal, Italy or Spain remains low, but those with assets located in the countries affected are right to have a very real concern for their property and the legal status of contracts which they have entered into, be that employment contracts or rental agreements.

The country which is seen as being the most likely to exit the euro is Greece. The treaties which established the single currency do not contain any mechanism for a country to leave the euro and re-establish its own sovereign currency. As there is no legal basis setting out the procedure for a country to leave the euro, this leaves the door open for speculation as to how an exit would be structured, the consequences for residents in the countries affected and for those owning assets in those countries.

If the Greeks were to re-establish sovereignty over their own currency then it is likely that a conversion day would be set when all euro deposits held with Greek banks and public institutions would be converted to the new drachma, or whatever the new Greek currency is called. This would be done at the official conversion day exchange rate agreed between the Greek government and the European Central Bank. Of course, no one knows what that conversion day exchange rate would be and whether the rate set would reflect the value the international markets are likely to place on the new drachma. Many would speculate that the new drachma is likely to depreciate, at least initially, while the euro itself would rise against the new drachma.

If this pattern of events played out, then it would be beneficial to delay converting euros into new drachmas until after the official conversion day. Those individuals and companies that waited to convert at a later date would potentially receive more drachmas for their money, and would be in charge of their own affairs rather than receiving the agreed official conversion exchange rate. As a result, many Greeks have been moving their money out of Greek banks and depositing their savings in stronger eurozone countries, and indeed to London and offshore banks.

While moving money out of Greece exacerbates the problem and further weakens the Greek banks, it is perfectly rational human behaviour. There is no rule against transferring funds in this way and the governments are powerless to legislate to prevent it; any such rule would contravene EU rules underpinning the single market, which guarantee free movement of capital. So, as a precaution, any euros held with banks in the club med countries should be transferred to stronger euro economies such as Germany, or better still, to euro-designated accounts outside of the EU, for example in Switzerland or the Channel Islands.

If a country exited the euro, there would also likely be major liquidity problems for that country’s banking sector and a run on their banks. If the Greek government was to announce its exit from the euro, there would be uncertainty and widespread panic among the Greek public; they would be desperate to withdraw their euros while they still could. As a result, it could become extremely difficult to access and withdraw funds held by those banks. The failure of the banks affected would become a real possibility. Investors’ protection would be limited to €100,000 for each depositer under the EU financial compensation scheme and the procedure for being repaid under that scheme is lengthy. For all these reasons it is again sensible to move money from banks and countries likely to be affected as soon as possible.

Where property is rented out either on a long-term basis or as short-term holiday lets, the rental agreements could be affected by any change in the currency where the property is located. For example, as part of the exit mechanism, any payments in contracts could be converted to the new drachma at the conversion day exchange rate. It would be advisable for such contracts to contain clauses setting out what is to happen in the event of a break-up of the euro. It should also be possible to provide in contracts that notwithstanding any other legislation or operation of law, the rent is still to be paid in euros.

Where staff are employed or services received in countries likely to be affected, a switch to a new currency could result in savings on the housekeeping or gardening bills for property owners. Any contracts for services should reflect that, following an exit from the euro, payments will be made in the new currency. Alternatively, such contracts could be drafted to terminate on an exit from the euro, with payment clauses being re-negotiated when the new currency details and value were known. Care would need to be taken with employment rights so as not to trigger any claims for dismissal in such circumstances.

While those with assets in the Club Med (Paris: FR0000121568 - news) countries are right to be concerned, the devaluation in asset prices will also bring opportunities. It should become possible to acquire holiday homes or additional land at lower prices. Those already holding assets should consider inheritance planning while asset prices are depressed.

If the headlines change again tomorrow and the euro crisis passes, taking preventative action will have been in vain. But complacency in such situations is rarely rewarded, and given the dramatic changes which would follow a break-up of the euro, taking precautions before it is too late is a pragmatic course of action.

Donald Simpson is a partner at Turcan Connell , lawyers, tax specialists and wealth managers

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Eurozone crisis: what should expats do?

Saudis, expats welcome decision to close erring hospital

(MENAFN - Arab News) Saudis and expatriates have welcomed the Ministry of Health's decision to close down a private hospital in Dammam for 15 days for having committed professional mistakes.

The ministry did not identify the hospital. However, Arab News readers identified it as Tadawi General Hospital in the city's Mazroueia district. A visit to the hospital on Wednesday by the newspaper's photographer confirmed this. A Ministry of Health note specifying the 15-day closure was pasted on all three entrances to the hospital.

According to sources in the Health Ministry, the decision to close the hospital temporarily stemmed from the ministry's keenness to ensure the safety and welfare of Saudis and expatriates.

The closure is aimed at encouraging the hospital to take remedial measures, the sources said, adding the decision was based solely on maintaining high health care standards in the Kingdom.

The ministry's decision was welcomed by members of the Saudi and expatriate community.

Journalist Hasan Al-Harthy described it as a step in the right direction. "We need such bold actions because some private hospitals have been making money at the expense of our health," he told Arab News. "They are playing with our lives and they need to be stopped."

He said some hospitals have become purely commercial ventures and money-spinners. "They look at everything in terms of profit, and in such a situation the health of the citizens and expatriates is always the casualty," he said. "Whoever commits such a mistake should be penalized."

"This reinforces our trust in the Ministry of Health," said Indian expatriate Shuja Mohammed Sheriff. "This will act as a deterrent and will compel all hospitals to meet mandatory safety regulations."

Sheriff said he was reassured by the regular checks conducted by the Health Ministry. "There has to be some of kind of accountability, and what the ministry is essentially underlining is that patient safety should come first," he said. "Private hospitals should not be allowed to cut corners and I, therefore, welcome and applaud the Health Ministry."

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Saudis, expats welcome decision to close erring hospital