Fiscal Policy

Viewsroom: Trump tax overhaul will be a long slog

28 Sep 2017

The U.S. president and Republicans want to reduce the corporate tax rate to 20 pct from 35 pct. After a blistering defeat over Obamacare, the prospects of significant reform are slim. Meanwhile, Equifax’s CEO slinks out of the building. Plus: Puerto Rico’s prayer for relief.

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.

Macron’s European vision too honest for own good

26 Sep 2017

The French president set out comprehensive proposals to overhaul defence, taxes, social policy and more. Though he deserves credit for articulating Europe’s potential, his detractors have many targets to attack. Candour about EU integration makes such dreams harder to realise.

Italy’s 5-Star puts respectable face on radicalism

25 Sep 2017

The protest movement, doing well in opinion polls, has named a 31-year-old lawmaker as its leader. Luigi Di Maio’s cool appeal contrasts with founder Beppe Grillo’s vitriolic style and may win over moderate voters in 2018. But going mainstream could undermine its basic appeal.

Growth shows up just in time for Argentina’s Macri

22 Sep 2017

The pro-business leader is counting on economic recovery to salve the pain of austerity as he undoes the spendthrift policies of populist predecessor Cristina Fernandez. Strong second-quarter growth is likely to help him stymie her aspirations of a comeback in mid-term elections.

Breakdown: Colour-coding Germany’s election

18 Sep 2017

GroKo, black-green or Jamaica? Angela Merkel is almost certain to win a fourth term, but the race to be her partner is wide open. The outcome matters for Germany – and for Europe. Breakingviews decodes the colourful jargon, and looks at the consequences of different outcomes.

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.

Italy’s latest bank bailout is gentle on taxpayers

11 Sep 2017

The country’s deposit fund is forking out 640 mln euros to clean up three small banks before they are sold to Credit Agricole. Prepping a target for a foreign rival looks generous and the fund’s returns are uncertain. At least taxpayers will be spared a hit this time.

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.

5-Star’s softer stance on euro is clever tactic

4 Sep 2017

The radical Italian party sees a referendum on euro membership as a last resort, one of its top lawmakers says. The apparent U-turn could help soothe markets and business before upcoming elections. There’s room to backtrack, but 5-Star is holding up and getting more nuanced.

Trump may unite Congress – against him

31 Aug 2017

The U.S. runs out of money in a month and the president is attacking lawmakers in his own party. That could prompt Republicans and Democrats to work together to keep the lights on. Plus: Rupert Murdoch could be overpaying for Sky.

Trump antics may be virus, cure for uneasy market

23 Aug 2017

The president threatened a government shutdown over border-wall funds as the risk of a U.S. debt default looms weeks away. Trump is angering the lawmakers he needs on the issues. Ironically, his divisiveness could actually unite the middle to resolve these economic hurdles.

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.

Hadas: A lesson for the Brexit mess from Obamacare

16 Aug 2017

The British vote to leave Europe and the vow by Republicans to cut back government health insurance were triumphs of dreams over reality. Facing the unpopular prospect of actually reducing benefits, the Americans blinked. The UK, with even worse choices, could do the same.

Mortgage interest deduction’s death long overdue

16 Aug 2017

White House officials are considering limiting a tax break that encourages home purchases. The incentive mostly helps the rich and induces risky behavior. The gimmick has also had little impact, with the home-ownership rate falling to a 51-year low in 2016. Its demise is welcome.

Washington has infrastructure backwards

15 Aug 2017

What’s needed to plug a $2 trln investment gap for U.S. airports, roads and such isn’t taxpayer cash. It’s the removal of hurdles to private financing and a change in the mindsets of authorities and consumers. There are good ideas to borrow from the likes of Canada and Australia.

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.

Bank of England is hostage to Brexit negotiations

3 Aug 2017

The central bank left interest rates on hold as it lowered growth forecasts. Uncertainty about Britain’s departure from the European Union is weighing on the economy’s potential. If Brexit leaves output permanently reduced, though, Governor Mark Carney will still need to hike.

U.S. tax-cut hopes may give pensions a rare boost

2 Aug 2017

International Paper is borrowing to stoke its retirement fund. Rising plan costs and a desire to lock in tax benefits before any reduction in rates prompted the move. With other firms likely to follow, this is one way Trump’s fiscal policies can trickle down to the little guy.

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.