Texas is U.S. state cash dilemma on steroids 18 May 2020 The onetime republic has low tax rates, modest spending and a love of small government. It also has a books-balancing problem, because of its reliance on oil and sales taxes. The state may have to go hat in hand to Washington. But if Texas needs special handouts, who doesn’t?
State bailouts could use a tax transparency clause 12 May 2020 France and Denmark want to ban companies operating out of tax havens like Panama from Covid-19 help. That’s fair but may only exclude a few firms. Forcing those which tap state aid to disclose how much tax they pay in each country would offer a bigger anti-avoidance boost.
Fringe taxes will go mainstream when lockdowns end 11 May 2020 Governments are currently handing out money, but their focus will eventually shift to recouping the costs of the crisis. The target will be those who benefited most from bailouts. Expect wealth taxes, tariffs on tech firms, and levies earmarked for public health to gain new fans.
Indian tax hikes are perverse economic necessity 6 May 2020 Governments worldwide are handing out cash to prop up demand as lockdowns crush revenue. New Delhi, however, is raising taxes to contain deficits, upping levies on petrol as states slap charges on booze. India’s fiscal anxiety is acute, but others may follow after the crisis.
Orbanomics may be Hungary’s best political shield 6 Apr 2020 Covid-19 has enabled Viktor Orban to rule by decree. Busy with the virus, the EU may fail to stop abuses. But the prime minister's power grab may be limited by Hungary's economic reliance on foreign investment, which gives the like of BMW more scope to register disapproval.
Corona Capital: Uncle Sam’s penchant for boutiques 2 Apr 2020 Concise views on the pandemic’s corporate and financial fallout. The U.S. government has given a boost to independent investment banks by hiring Moelis. Perella Weinberg and PJT are its bailout advisers. Megabanks like JPMorgan and Goldman Sachs, meanwhile, are left on the shelf.
Cox: Are taxpayers ready to rescue the jerks too? 19 Mar 2020 Workers will be human shields for reckless CEOs in the crisis clamor to save jobs. Consider Penn National: The U.S. casino group gorged on debt and bought brash Barstool Sports a month ago. If capitalism had any purity, or morality, Penn would go bust. Watch it get bailed out.
Hadas: Wealth tax offers low-risk test of MMT 26 Feb 2020 Most taxes redistribute money that is already circulating in the economy, but proposed levies on capital would bring new funds into play, without increasing the fiscal deficit. If Modern Monetary Theory is right, a rush of well-spent new money would strengthen the U.S. economy.
Facebook tax fight slaps a levy on its reputation 25 Feb 2020 The social network is fighting U.S. authorities in court over a $9 bln tax bill. Its defense has merit. But for a $620 bln company to say it should pay less because its future was uncertain a decade ago defies common sense. That will only win Facebook more enemies.
India’s tax tweaks will deliver half-stimulus 29 Jan 2020 The government may implement big changes to levies on dividends and capital gains in the budget, building on cuts to corporate dues. Lower rates will please investors, but the next step is freeing officials of collection targets and creating a credible system to resolve disputes.
Investors and EU can marginalize U.S. on climate 27 Jan 2020 Commerce Secretary Wilbur Ross says the White House might deem a European carbon tax on imports protectionist. That exposes one of the problems with regional solutions to global warming. Allying with global investors would help create more powerful sticks and carrots.
U.S.-France digital tax truce could easily unravel 23 Jan 2020 Treasury Secretary Steven Mnuchin is no longer demanding that any global Big Tech levy be optional, while Paris will delay collecting payments from groups like Google. That was the easy part. Even basics, such as how much to charge such companies, will be harder to hammer out.
New York entertains a lesson in secession 10 Jan 2020 Staten Island may reanimate a 26-year-old bid to break away from the Big Apple. There are countless reasons not to, and the economic case is sketchy – but residents could back it anyway. New York’s “forgotten borough” is a fitting ambassador for a world that’s getting smaller.
Review: Everyone loses in “Laundromat” shell game 8 Nov 2019 Legalese rarely makes for a snappy screenplay. But Steven Soderbergh’s dark farce about the Panama Papers tries to do just that. It might not fully succeed, but kudos to the director for skewering the pretensions of today’s masters of the universe – including those in Hollywood.
Bolsonaro’s epic pensions victory may be his last 23 Oct 2019 Brazil’s president has secured a budget-saving $195 bln overhaul of the country’s retirement program. It’s a success that eluded plenty of his predecessors. But the far-right leader’s low approval ratings and endless controversies may make tax and spending reforms a tougher slog.
Review: Making American taxes great again 11 Oct 2019 In “The Triumph of Injustice”, Emmanuel Saez and Gabriel Zucman call for a return to a time when U.S. taxes hurt the rich by squeezing mega-fortunes and making corporations pay up. The book’s history is good and its recommendations are sensible. But the politics look challenging.
Global tax war inches towards a fragile peace 9 Oct 2019 The OECD wants companies like Facebook to pay tax partly based on where they make revenue, rather than where profit is declared. It makes sense. But even if countries agree with the idea, national interests mean it will be a long slog before the principle is put into practice.
Hadas: American wealth tax starts looking doable 9 Oct 2019 What seemed like political theatre at the start of the Democratic debates has gone mainstream, embraced by leading presidential contenders. A capital levy would slow the pace of inequality, if the public mood changes enough. More surprisingly, it might even help the economy.
Trump’s booze tariffs may cause extended hangover 3 Oct 2019 Washington slapped levies on $7.5 bln of European imports including Scottish whisky and French wine in return for aircraft subsidies. That’s weaker than feared: Less than 5% of Diageo’s sales are affected, Jefferies reckons. But trade tensions could prompt more trips to the bar.
Germany’s climate menu mixes small beer and fudge 20 Sep 2019 Angela Merkel’s coalition will begin pricing carbon at 26 euros a tonne to reduce emissions. That gives big polluters little incentive to clean up. It also limits Berlin’s need to disguise that its new 50 bln euro fund to smooth the transition will stay off-balance sheet.