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.
Merkel matters less than her next coalition allies 18 Aug 2017 The German chancellor is poised to win a fourth term in September’s vote. However, Angela Merkel may well be forced to govern with a small majority in partnership with the Free Democrats. That party’s trenchant calls for even more austerity are bad news for Germany and Europe.
Exchange Podcast: Art Laffer 8 Aug 2017 U.S. Republicans are pursuing the holy grail of Washington policy: tax reform. The last comprehensive overhaul was in 1986 under Ronald Reagan. The Exchange met with Reagan adviser Art Laffer, known as the father of supply-side economics, to discuss the prospects for reform today.
Corporate America faces little guy in tax reform 1 Aug 2017 The White House is pitching an overhaul of the tax code. Republican leaders highlight company rate cuts while rank-and-file lawmakers are prioritizing middle-class relief. Congress is also toiling over how to pay for the revamp. Corporations may have to temper their wish lists.
Viewsroom: Why U.S. tax reform is doomed, too 20 Jul 2017 Republicans’ failure to replace Obamacare throws into doubt Washington’s ability to keep other high-profile election promises, not least cutting corporate levies. Meanwhile, President Trump’s fuzzy agenda for reforming NAFTA could give Canada and Mexico more bargaining power.
Why Europe can’t beat Google on corporate taxes 13 Jul 2017 A court has ruled the search giant is not liable for French back-tax after all. Google will face other battles over how it arranges its profits. Tech companies will always have an advantage, though. Unlike competing European countries, they can put their global interest first.
Overhaul pits taxman against Indian ingenuity 3 Jul 2017 The rollout of a nationwide goods and services levy has been surprisingly smooth. The real prize would be shrinking the informal economy. Yet citizens have circumvented Prime Minister Modi's previous big reforms. That makes it too soon to hail GST a success.
Hadas: The constant challenge of deep-set problems 21 Jun 2017 The deadly fire in London’s Grenfell Tower has exposed the UK’s deeply flawed approach to housing. But serious policy flaws aren’t exclusively British. Americans fail in healthcare and Greeks won’t pay taxes. The only cure is a values revolution.
Modi’s India can ride out giant tax reform 13 Jun 2017 The nation is ill-prepared for the July 1 rollout of a fiddly new goods and services tax. Yet Premier Modi’s recent money experiment shows India can handle significant disruption. And for all its flaws, the tax overhaul will smooth the way to more efficient, less corrupt economy.
Yahoo investors are U.S. tax-reform skeptics 12 Jun 2017 With the sale of its core business ratified by shareholders, the company's $52 bln worth should reflect the after-tax value of stakes in Alibaba and Yahoo Japan. For now, the implied tax hit is 35 pct. People who believe Trump will succeed in slashing taxes should buy the stock.
Kansas GOP to D.C. GOP: trickle down ain’t coming 7 Jun 2017 Lawmakers scrapped the 2013 tax cuts pushed by the state's governor, who believed they would spur hiring and spending. Instead Kansas got budget deficits and failing schools. Donald Trump also hopes slashing federal taxes will boost growth. Congress may yet disagree.
Tax windfall charges up RWE, E.ON recovery 7 Jun 2017 Germany’s battered utilities can get back more than 6 bln euros in past tax payments, the country’s top court decided. It’s the final stage in the sector’s rehabilitation, following big restructurings and settlements on nuclear liabilities – and sets the scene for M&A.
New Irish leader is more like Renzi than Macron 5 Jun 2017 Leo Varadkar will be Ireland’s youngest prime minister, prompting comparisons with France’s Emmanuel Macron. Parallels with Italy’s former PM Matteo Renzi are more apt. His government is weak, and he could be at odds with Europe on Ireland’s chief challenges of Brexit and taxes.
Labour’s risky UK manifesto requires Brexit context 16 May 2017 Britain’s opposition party has outlined tax rises for companies and the rich to pay for higher spending. Potential payers could get around them. Yet what Labour is proposing isn’t that much more risky than the “hard Brexit” the ruling Conservative party may deliver.
Chinese taxpayers have most to fear on Silk Road 16 May 2017 President Xi pledged $124 bln at an international summit to build a modern version of the ancient trading route. Huge global infrastructure spending will burnish Beijing's standing. But the hype could backfire if citizens of the People's Republic fail to reap tangible benefits.
Levy takes some sheen off Australian banks 10 May 2017 The government is slapping a 6 bps levy on big banks’ liabilities. The move will rake A$6.2 bln into federal coffers and shows bank-bashing is good politics, even in countries that weathered the financial crisis well. At least the sector is strong enough to absorb the hit.
Kansas’ fiscal fiasco a warning for Trump tax plan 3 May 2017 The president’s tax plan echoes sweeping cuts by the Plains state in 2012. The GOP governor’s bet on trickle-down economics slashed revenue but failed to spur growth. Lawmakers now want to reverse the reductions amid a school-funding crisis. It may be a crystal ball for D.C.
Hadas: Basic income is basically confused 3 May 2017 As new technology threatens job security, the dream of giving all citizens a simple payment is making a comeback. But the idea is too expensive to be practical. It also ignores the biggest drawback of modern welfare states: that lives are complicated and people are not angels.
India’s Minister for Everything poses a problem 3 May 2017 Finance Minister Arun Jaitley also oversees defence and corporate affairs. Rolling out a giant tax reform, tackling bad debt, and managing military spending is too much for one person. It reflects a talent crunch in New Delhi as much as the playbook of a strongman ruler.
Theresa May has a way out of UK pension pickle 28 Apr 2017 The prime minister is dithering over whether to keep guaranteeing above-inflation hikes to pensioners. The triple-lock is nonsensical, inequitable and unfit for an era of Brexit and stagnant wages. May has the political capital to adopt a fairer single-lock, tied to earnings.