Congressional contortions raise risks to tax cuts 15 Nov 2017 The Senate is complicating tax reform by proposing to repeal a key part of Obamacare. Cuts in personal rates would also be temporary while corporate breaks would be permanent. The moves would help meet deficit rules but alienate key lawmakers - and give critics more ammunition.
Private equity deserves U.S. tax hit, not startups 14 Nov 2017 Tech firms are understandably upset over a Senate plan to tax stock options when vested. It would raise $13 bln over 10 years. Ending a loophole on investment profit for buyout barons would bring in more. It’s a better target for Republicans already accused of favoring the rich.
U.S. tax reform heading for desperate compromise 9 Nov 2017 Senate Republicans want to delay a corporate rate cut, preserve the estate tax and fully repeal state and local deductions. It sets them at odds with House colleagues and could derail the effort. A GOP frantic for a policy win, though, means major concessions are likely.
Republican tax plan both sublime and ridiculous 2 Nov 2017 Reducing mortgage and interest deductibility has merit. So do some proposals for simplifying the code. But carried interest is left as is, one of several sops to the wealthy. Ideas on churches, childcare and state taxes look overly political or mean-spirited – and ripe for haggling.
Botched Republican pitch bodes ill for tax cuts 2 Nov 2017 The revised plan only partly deals with criticism it benefits the rich. White House salesmen Gary Cohn and Steven Mnuchin did their own damage by defending cuts for the wealthy and vastly overstating middle-class income. Such poor marketing puts Trump’s economic goals in danger.
The Exchange: Mark Meadows 26 Oct 2017 The congressman and chair of the Freedom Caucus thinks neither Republicans nor Democrats have had success in being the governing party. The Exchange went to his office to discuss what that means for tax reform and other issues, and why members of Congress could lose their jobs.
Republican tax-reform hopes have yet to hit reality 24 Oct 2017 A giddy GOP looks set to pass a budget resolution to pave the way for a tax overhaul that the House aims to approve by Thanksgiving. Members haven’t solved their deficit dilemma, though, and President Trump has shot down potential revenue raisers. The hard work is just beginning.
U.S. tax outlook opens M&A pricing divide 18 Oct 2017 Republicans want to cut the corporate rate to 20 pct, but the timing is as uncertain as the outcome. Theoretically, profit – and thereby valuations – could get a 23 pct boost from lower taxes. Sellers want that priced in, but buyers won’t. All-stock deals could be one answer.
Trump’s petty fight upsets art of the tax deal 9 Oct 2017 The U.S. president’s relationship with Republican lawmaker Bob Corker soured further during a Twitter argument. Yet the Tennessean’s support is critical to push tax reform in the Senate, where the GOP has a slim majority. The squabbling endangers a plan that is already under attack.
White House economist drinks Trump’s Kool-Aid 5 Oct 2017 Tax cuts will pay for themselves through economic growth, says Council of Economic Advisers chief Kevin Hassett. He also backed the U.S. president’s protectionist policies, despite being a “full-blown free trader.” That’s one aide fewer willing to dispute voodoo economics.
Guggenheim sells its way to some rare good news 29 Sep 2017 The Wall Street firm has snagged a hefty 12 times EBITDA from Invesco for its ETF unit. The buyer also bags a big tax break, but barely gains ground on industry giants. Guggenheim, meanwhile, pockets a welcome $1.2 bln distraction from months of debilitating executive squabbling.
White House pins tax cuts on fanciful economics 28 Sep 2017 Presidential adviser Gary Cohn says its costly plan will pay for itself because of the expansion it'll spark. Skepticism is warranted. GDP growth topped 4 pct for a bit following Reagan and Clinton reforms, but the correlation isn’t as strong as the GOP would like to believe.
State tax deduction pain would spread to Trumpland 27 Sep 2017 GOP leaders want to scrap the break that mainly helps upper-income earners in Clinton-backing locales like New York. It raises $1.3 trln over a decade to help offset tax cuts. Yet all states take advantage of the deduction, which includes sales tax. It sets up a bruising fight.
India walks tightrope with “black money” fight 27 Sep 2017 Premier Narendra Modi has unleashed a raft of initiatives to root out income obtained illegally or hidden from the taxman. The cost has been a sharp slowdown in growth. The potential prize is a big uptick in India’s ability to spend – and an easier path for Modi to re-election.
Healthcare’s nonprofit status belongs in the grave 13 Sep 2017 Publicly traded Centene is buying tax-exempt insurer Fidelis for $3.75 bln. The seller’s priest-CEO earns an ungodly sum. Exorbitant pay is rife in nonprofit healthcare, yet is rarely tied to community benefit. Euthanizing these firms’ tax break would be a social good.
Dixon: No escape from debtors’ prison for Greece 11 Sep 2017 Alexis Tsipras is desperate to avoid surveillance of his actions by the country’s creditors when its third bailout ends next August. The best the Greek prime minister can hope for is to move from a high-security unit to an open prison – and only if he behaves.
Guest view: Tax relief made for U.S. manufacturers 5 Sep 2017 President Trump's broad reforms probably will take many months to craft, but Congress already has a narrower bipartisan plan to help. Offering credits for putting R&D side by side with domestic factories can help productivity, argues Dhaval Jadav, the CEO of a tax consultancy.
India’s big-cash call generates surprise dividends 30 Aug 2017 Nearly all $242 bln of high-value notes scrapped nine months ago were turned in to banks. It also led to an unexpected jump in reported suspicious transactions. That gives the taxman a useful paper trail that may lead to benefits from this unorthodox monetary experiment.
U.S. tax reform plan can contain hidden loopholes 30 Aug 2017 The GOP no longer wants to tax worldwide corporate profits, which pushes companies to move overseas. It’s a good idea but may create other ways to dodge Uncle Sam. Accounting for assets like patents would help ensure firms, especially in tech, don’t game their government bills.
India’s tax attack on Li Ka-shing is a bad call 30 Aug 2017 New Delhi wants to wring the same taxes out of buyer and seller in an old telco deal. Slapping a $5 bln demand on Hong Kong’s CK Hutchison, while also chasing Vodafone, is farcical. If India really wants to end “tax terrorism” it should change its law and rein in bureaucrats.