Tax

Tech firms can be citizens as well as piggy banks

23 May 2019

San Francisco is mulling a so-called IPO tax to help fund affordable housing. Money isn’t really the issue, though: useful projects get snared in local opposition. Facebook and its ilk would do more good getting staff to be engaged citizens, and even incentivizing them to do so.

Swiss tax reform will earn it EU brownie points

20 May 2019

Voters in the Alpine nation have backed a plan to axe fiscal favours for some 24,000 multinationals. Some companies may now find it less appealing to set up shop in Switzerland. But the move averts the bigger threat of it ending up on a European Union list of tax havens.

Walmart is a test of broader tariff harm

16 May 2019

The retailer reported U.S. sales rose 3.4%, yet momentum could wane once higher border levies on another $200 bln of imports from China kick in. Walmart may not be the most exposed business, but Americans shopping at its more than 5,300 stores will feel it in their pockets.

Hadas: An ultra-tax on the ultra-rich makes sense

30 Jan 2019

Some U.S. politicians want to extract much more money from the topmost sliver of the population. This would amount to collecting an underpaid social debt and restoring a tarnished social contract, without much economic risk. And higher taxes now might prevent a revolution later.

Italy puts luxury tag on discount Kering tax claim

28 Jan 2019

Authorities are seeking 1.4 bln euros of back taxes from the French-based owner of Gucci. That’s 60 percent of the company’s total bill between 2011 and 2017. Italy may have a case for questioning activity from Kering’s Swiss logistics unit. Yet the claim looks too big.

The “gilets jaunes” invade Davos if only in spirit

24 Jan 2019

While yellow-vested protesters aren’t clogging the Davos Promenade, the French movement’s presence was felt on the World Economic Forum’s stages and backrooms. And at least one European government, Italy’s, made the case for policies that might as well be called gilet-ist.

Banks tell a U.S. tax tale with three endings

15 Jan 2019

Wells Fargo, JPMorgan and Citi all started 2018 with the gift of lower taxes. Fourth-quarter earnings show the similarities end there. Treasury largesse propped up Citi and Wells, accounting for most of their underlying growth. JPMorgan gave back most, and needed the help least.

Hadas: Silly carbon tax talk hides hard choices

2 Jan 2019

The principle that higher prices reduce demand lies behind calls for levies on carbon dioxide emissions. But prices cannot do much in the large, complicated and economically crucial energy industry. Only big government, or major lifestyle adjustments, can really change things.

Bush paid history’s economic dividends forward

1 Dec 2018

During the 41st U.S. president's one term, Soviet communism fell and Iraq's invasion of Kuwait was foiled. The "kinder, gentler" Bush was the last of a Washington breed that sought compromise. He put country over party. His successors reaped, and then squandered, the benefits.

GM’s Mary Barra has only one leg to stand on

27 Nov 2018

Pulling subsidies as revenge for the $51 bln carmaker cutting U.S. staff and plants – as President Trump has threatened - would be unfair. It might not even be possible. Trouble is GM remains a poster child for government bailouts. It’s a fight its boss can’t easily win.

G20 showdown hangs on big numbers, big egos

21 Nov 2018

Donald Trump and Xi Jinping’s upcoming meeting is weighing on markets. Despite discord among his aides, the U.S. president has the autonomy to strike a deal if China offers the right incentives. His interest in trade balances and historical strongmen creates an opportunity.

Viewsroom: Europe fights U.S. Big Tech

15 Nov 2018

Digital titans like Alphabet and Apple may rule the roost, but EU rules on data privacy are helping startups flourish on the other side of the Atlantic. Meanwhile, Facebook’s inability to police fake content spreads to Africa. Plus: Mumbai’s ride-share drivers go on strike.

Jeff Bezos spreads jobs and disappointment

13 Nov 2018

By splitting his ballyhooed HQ2 between New York City and greater Washington, the Amazon boss can tap deep pools of tech talent. But the unconventional choice aggravates the socioeconomic divisions that plague America. It also exposes the year-long exercise as somewhat of a sham.

Trade war ushers in the compartmentalized economy

8 Nov 2018

Beijing and Washington’s conscious uncoupling could unravel decades-old commercial ties. That doesn’t mean the rest of the world has to choose sides. Companies like electronics maker Philips are mulling how to take advantage of both markets. Business can continue, at a cost.

Hadas: Wealth-power is about influence not comfort

31 Oct 2018

The unequal distribution of wealth hardly affects consumption in developed economies: millionaires don’t live much better than the middle class. But excess money does buy status, influence and political power. To break the trend, politicians need to target inherited fortunes.

UK’s digital tax is a flawed scare tactic

30 Oct 2018

The specter of a 2 pct levy on revenue from in-country users of Facebook et al is partly a negotiating ploy aimed at America. Britain and others want new global rules for taxing tech firms. Yet the U.S. has little reason to acquiesce, and unilateral measures risk retaliation.

China tax cut would only be band-aid for carmakers

29 Oct 2018

Halving the levy on new vehicle sales might help prop up falling demand. But it could delay the country’s much-needed industry consolidation. Meanwhile foreign automakers have far more to fear from U.S. and European slowdowns – not to mention the prospect of more trade tariffs.

Cox: Wooing of GE is lesson for wannabe Amazon HQs

4 Oct 2018

Lured by inducements and hangars for its CEO’s jets, the group quit Connecticut in 2016 for Boston. GE has since incinerated over $150 bln of value and shed businesses, leaving less for its new home. Yet it continues to inflame politics in the place it left. Bezos buyers beware.

EU arms media with a pea-shooter for Google fight

12 Sep 2018

Brussels’ proposals would make it easier for publishers to charge tech groups for using their articles. But given Google and Facebook hold all the market power, the plan would make little difference. Digital dominance calls for antitrust remedies rather than ineffective fiddling.

Beijing’s confused tax message will strain growth

12 Sep 2018

A fiscal shake-up is set to slash personal taxes and leave China's workers with nearly $50 bln more to spend. Companies, though, may need to start paying a lot more social charges, raising their costs. That has left officials scrambling to avoid a fall in corporate investment.