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.
Archived tax plan could help White House close gap 27 Apr 2017 Donald Trump's bullet points, summarizing earlier campaign ideas, would add trillions to U.S. deficits over 10 years. Ex-Congressman Dave Camp sketched out a more balanced plan three years ago. It may offer a blueprint, albeit with smaller business-rate cuts than Trump wants.
Trump’s sketchy tax math will fail Congress test 26 Apr 2017 The president’s plan for big rate cuts relies on the unrealistic assumption that GDP will hit 3 pct and be enough to cover any revenue shortfall. The U.S. deficit, though, is growing at an alarming pace. Republican lawmakers are likely to demand a do-over before giving it a pass.
Trump’s first 100 days provide more art than deal 24 Apr 2017 The U.S. president is planning a flurry of events before Saturday's landmark, including another try at repealing Obamacare and the unveiling of a tax plan. Promised early policy wins have yet to materialize though. Given his record, he’d be wise not to risk a Washington shutdown.
Indonesian tax amnesty odd help for private banks 10 Apr 2017 A tax amnesty that saw citizens declare $365 bln in assets has been a blessing in disguise for top private banks. The ultimate outflows to Indonesia were a fraction of the headline amount. More importantly, the scheme gave lenders the excuse to do some overdue spring-cleaning.
Credit Suisse raid jabs at private bank model 3 Apr 2017 The Swiss bank has stressed zero tolerance for tax evasion after authorities swooped on three offices. Credit Suisse may be scrupulous, but managing money for the wealthy brings certain recurring risks – not least because of Swiss private banks' historic pledge of utter secrecy.
Saudi finds cheap way to be generous to Aramco 28 Mar 2017 The kingdom has slashed its oil major’s tax rate to juice up a potential IPO. That could theoretically triple the company’s market value to well over $1 trillion. Yet because Saudi will keep a 95 pct stake, the state can recoup almost all of what it appears be giving away.
Britain’s budget U-turn merits Brexit deal alarm 15 Mar 2017 Chancellor Philip Hammond has reversed last week's tax hike for self-employed workers. As EU exit negotiations begin, the UK critically needs a united government that can be firm in the face of political pressure. Ditching a defensible reform implies the opposite.
Latam tax amnesties test private banks’ stamina 6 Mar 2017 Latin American countries are finding that tax forgiveness programs can bring billions in hidden assets into the open. UBS and Credit Suisse are discovering that the process can cause chunky asset outflows. Moving onshore could help the Swiss giants retain their share of the pie.
Mnuchin’s stock-market brag is double-edged sword 23 Feb 2017 The new U.S. Treasury chief says the equities rally reflects faith in Trump and his promises of tax reform and fiscal stimulus. Both need Congress's say-so, and may bring higher inflation. Anti-immigrant and trade policies could also mute market gains. Mnuchin's boast is risky.
Struggling U.S. retailers take aim at border tax plan 15 Feb 2017 CEOs from the likes of Target and Gap are meeting with President Trump to voice concern over proposed border taxes. With store closings and job cuts accelerating, a levy that raises prices for consumers would add to the woes of an industry that's America's largest private-sector employer.
Credit Suisse lure just visible beneath the warts 14 Feb 2017 The Swiss bank's socking 2.3 bln Swiss franc fourth-quarter loss followed a charge to settle U.S. mortgage litigation. Equities trading and Asian investment banking were dismal. But private banking and balance-sheet resilience favour Credit Suisse's stock over richer-priced UBS.
Switzerland shoots itself in foot on tax reform 13 Feb 2017 Voters rejected a government plan to balance low corporate rates with global reforms. That might make sense if international cooperation on tax fails. But the Swiss are mainly hoping to avoid higher personal taxes. If multinationals flee, these will happen anyway.
Ireland could join Britain in EU departure lounge 6 Feb 2017 Dublin’s unequivocally pro-Brussels stance may be tested if politics unmoors it from key trading partners like the UK and U.S. A tough Brexit deal, along with an inflated EU budget bill caused by tax inversions, could raise tricky questions about Ireland’s true interests.
Viewsroom: The cost of jingoism 2 Feb 2017 President Trump's trade-tariff threats and his temporary immigration ban risk undermining business-friendly policies like deregulation and tax cuts. Meanwhile, he has nominated a Supreme Court justice. And Under Armour takes center stage in the battle for shareholder rights.
Infrastructure builds Gary Cohn’s White House role 2 Feb 2017 The former Goldman president is drafting a plan to build roads and smart grids, which may be more doable than tax reform. His strong presence and chutzpah make him a Trump favorite. Fixing bridges and airports would solidify his leadership in economic policy over other aides.
Trump’s America First drive hits a wall 26 Jan 2017 Taxing imports from Mexico is the administration's latest idea to finance a barrier on the southern border. The plan resembles a border adjustment tax favored by congressional GOPers. It could generate plenty of money, but American consumers - not Mexico - would pay the bill.
Viewsroom: Trump’s borderline tax ideas 26 Jan 2017 Two competing tariff ideas from President Trump and congressional Republicans bring merits but mostly unforeseen risks. Meanwhile, any cut in the corporate tax rate will benefit hapless Yahoo and its Asian holdings. Plus, why it pays to bet against Davos Man's thinking.
Breakdown: Border tariff vs. border-adjustment tax 25 Jan 2017 Donald Trump wants to hit firms that outsource with a simple levy on imports. GOPers in Congress have pitched a more complex idea built into a corporate-tax overhaul, which might more reliably offset the effects of lower tax rates. The plans create different winners and losers.
Tax reform could strip the “L” from LBO 24 Jan 2017 Many companies love the idea, espoused by President Donald Trump and Republicans, of slashing corporate tax rates. But one quid pro quo, ending the deductibility of interest payments, would spike one of private equity's most potent weapons – especially if interest rates go up.