Biden’s offshore tax push may undo a Trump success 15 Apr 2021 The U.S. president's predecessor discouraged companies from moving – and keeping – profit overseas. Biden's plan to boost corporate taxes includes a higher levy on foreign income. The package would help federal coffers but risks eroding incentives to bring money home.
U.S. corporate tax hike is mostly no big deal 14 Apr 2021 Joe Biden’s plan to raise the rate to 28% from 21% would boost Washington’s coffers. For companies and investors, though, it may not matter much over time. In a series of charts, Breakingviews illustrates why. Within reason, America’s tax rate will remain competitive, too.
Review: Tax’s weird past exposes present oddities 9 Apr 2021 State levies propelled historical turning points from Magna Carta to the Boston Tea Party. “Rebellion, Rascals and Revenue” turns these episodes into an elegant tax-theory primer. Current practices, like rules for multinationals, prove no stranger than peculiarities of yesterday.
Path out of global tax combat is slowly emerging 8 Apr 2021 A new U.S. proposal would allow other countries to raise more money from tech giants like Facebook, the FT reported. It’s a concession that could unlock a broader deal on a global minimum levy. Low-tax states, like Ireland, and big multinationals may have no way to avoid a hit.
Yellen global minimum tax is step too far in D.C. 6 Apr 2021 The U.S. Treasury chief is on board with an OECD initiative to end a race to the bottom on company taxes. It’s a logical goal for most big economies. But nailing a global pact is tough. It would also mean one more fight in Congress, where Joe Biden needs to pick his battles.
Rosier IMF forecasts are riddled with inequalities 6 Apr 2021 The international lender upgraded its global growth forecasts for this year and next. But there is a gulf between haves and have-nots, across countries and within them. Some of the sound advice it is doling out to mitigate the problem may be hard for governments to implement.
Breakdown: Carbon border tax isn’t about carbon 22 Mar 2021 Europe and the U.S. look like they are upping their climate game by mulling a levy on high-carbon imports. But it’s also a way to level the playing field. Companies end up with less reason to move to high-polluting places like China; domestic firms get credit for staying.
UK online levy procrastination may be helpful 22 Feb 2021 Finance minister Rishi Sunak has delayed a decision on whether to impose a 2% sales tax on internet retailers like Amazon. He misses out on some tax revenue in the short term but buys time for joined-up thinking on how to level the playing field for firms that pay property tax.
Guest view: Virus teaches the limits of economics 8 Feb 2021 Faced with ballooning deficits, governments are reversing decades of reduced corporate taxes. It’s an overdue recognition the policy never delivered the promised benefits, argues Tom Bergin. Other misguided theories, from labour taxes to tobacco levies, are also due a rethink.
The Exchange: The long life of bad economic ideas 2 Feb 2021 From self-funding tax cuts to runaway executive pay, economists have provided intellectual support for seriously flawed policies. Reuters journalist Tom Bergin, author of “Free Lunch Thinking” tells Peter Thal Larsen how dodgy theories helped mislead politicians and the public.
UK’s duty-free golden goose will become albatross 30 Dec 2020 The government’s plan to end tax rebates for inbound tourists was part of its EU horse-trading. But it’s a needless hit to ailing retailers’ Asian custom. Instead of raising revenue in 2021, it will just become a symbol of the UK’s Brexit-era capacity for reckless self-harm.
Time for India to end its global tax fights 23 Dec 2020 The Hague awarded Cairn Energy $1.4 bln in its spat with New Delhi, more than the UK group’s market cap. Vodafone had a similar win. Accepting these outcomes would make Boris Johnson’s January visit run smoothly, and inject credibility into India’s global investment ambitions.
Russia’s wheat tax scrapes bottom of policy barrel 22 Dec 2020 Fiscal conservatism and administrative issues make it tricky for Moscow to support citizens via European-style furloughs. Its Plan B, a levy on wheat exports, is supposed to limit domestic food price inflation. But in doing so it will probably undermine a key Russian industry.
Corona Capital: Private jet deal 17 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Blackstone bets that plutocrats will be back in the air before the rest of us.
France picks wrong tax fight with United States 30 Nov 2020 Finance Minister Bruno Le Maire wants President-elect Joe Biden’s administration to help overhaul rules on how digital services are taxed. A global minimum levy on all firms is more likely to win U.S. support, and will raise more cash. Europe’s tech-bashing is counterproductive.
Italy finds tax trick to prettify risky bank M&A 26 Nov 2020 Rome is letting lenders turn past losses into fiscal credits if they merge. The capital boost may make shaky state-controlled Monte Paschi more appealing to buyers such as UniCredit, without breaking state aid rules. But even healthy groups, like Credit Agricole or BPM, may gain.
Viewsroom: What we’re expecting on election night 29 Oct 2020 If Joe Biden wins Donald Trump’s place as POTUS on Nov. 3, and the Senate turns Democrat, lots of things will change – chief among them tax and economic policy. But big tech companies and China’s Communist Party will gain no reprieve. Rob Cox, Gina Chon and John Foley discuss.
Joe Biden’s tax plan has a flaw: too many losers 19 Oct 2020 The presidential candidate pledges to slap new levies only on the very wealthy. But his plan to raise the corporate rate may mean that workers receive lower wages by 2030 than they would otherwise. This points to a tax system that punishes the rich without helping the poor.
The Exchange: Terra incognita 13 Oct 2020 The U.S. faces more uncertainty as 2020 ends, including inflation, antitrust enforcement, and how the next president handles taxes, trade and the post-virus economy. So says Nathan Sheets, chief economist at PGIM Fixed Income. He argues tackling inequality should be a priority.
Trump’s tax avoidance is a real election issue 28 Sep 2020 The U.S. president paid just $750 in federal taxes the year he was elected thanks to losses and deductions, according to the New York Times. Assume it's all legitimate and it shows how America's tax code favors corporations and the very rich. If voters want, they can change that.