Tax

The Exchange: NY Deputy Mayor Alicia Glen

13 Dec 2017

How bad will the Republican tax plan be for New York City? Alicia Glen, who looks after economic development for America's largest city, says it will hit 700,000 taxpayers and depress property values. But it won't make the Big Apple any less appetizing for the best and brightest.

Alabama voters put anger before economics

13 Dec 2017

Democrat Doug Jones won the state’s U.S. Senate race in a stunning upset. Rival Roy Moore has unique troubles, namely allegations of sexual misconduct. But Trump’s approval has also fallen, despite Alabama’s low jobless rate. The Republican economic-growth message isn’t a magic elixir.

Hadas: The mystery of lost competition

6 Dec 2017

The U.S. tax cut is expected to boost corporate earnings but not lower prices or raise wages. That implies there’s too much tacit collusion for basic economic theory to work as designed. Limited price competition is great for shareholder value, but bad for the economy.

Rushed U.S. tax bill rewards oil, real estate

4 Dec 2017

The Republican Senate plan snuck in tax breaks for oil and gas partnerships, real-estate investment trusts and other sectors. One hiccup puts the research tax credit favored by business at risk. But overall, corporate America and the wealthy may receive an early Christmas gift.

GOP casts principle aside in scramble for tax win

2 Dec 2017

Senate Republicans passed a tax cut plan after last-minute changes papering over deficit concerns and the bill’s tilt to the wealthy. Differences with the House must be reconciled. But an escalating Russian influence probe makes the party even more frantic to claim a victory.

Botched process leads to Frankenstein tax plan

30 Nov 2017

U.S. Senate Republicans are rushing into a vote on their tax-cut effort. Changes to appease GOP critics have yet to be settled, including a trigger to raise taxes if growth falls short. Lower-income Americans will also face higher bills. Lawmakers are creating a scary mess.

U.S. doesn’t even have a corporate tax problem

30 Nov 2017

Proposals in Congress would cut the levy on companies and, temporarily, on individuals. The move may give a late-cycle boost to the economy but add to the deficit and debt. The irony is that corporate profit is already plentiful while Uncle Sam's tax take is historically low.

Cox: Trump bump aside, U.S. stocks lag in 2017

30 Nov 2017

The president has unprecedentedly staked his political colors to the mast of rising equity prices, calling the S&P's rally a validation of his policies. Yet most other markets around the world have done even better. There are bigger forces at work than U.S. corporate tax rates.

Dutch Brexit red carpet hastens tax race to bottom

22 Nov 2017

The country’s new government plans to slash corporate taxes and cancel a levy on dividends paid overseas. One reason is to lure multinationals unsettled by Britain’s departure from the European Union. It’s an expensive gamble that makes it likelier other nations will follow suit.

Congressional contortions raise risks to tax cuts

15 Nov 2017

The Senate is complicating tax reform by proposing to repeal a key part of Obamacare. Cuts in personal rates would also be temporary while corporate breaks would be permanent. The moves would help meet deficit rules but alienate key lawmakers - and give critics more ammunition.

Private equity deserves U.S. tax hit, not startups

14 Nov 2017

Tech firms are understandably upset over a Senate plan to tax stock options when vested. It would raise $13 bln over 10 years. Ending a loophole on investment profit for buyout barons would bring in more. It’s a better target for Republicans already accused of favoring the rich.

U.S. tax reform heading for desperate compromise

9 Nov 2017

Senate Republicans want to delay a corporate rate cut, preserve the estate tax and fully repeal state and local deductions. It sets them at odds with House colleagues and could derail the effort. A GOP frantic for a policy win, though, means major concessions are likely.

Republican tax plan both sublime and ridiculous

2 Nov 2017

Reducing mortgage and interest deductibility has merit. So do some proposals for simplifying the code. But carried interest is left as is, one of several sops to the wealthy. Ideas on churches, childcare and state taxes look overly political or mean-spirited – and ripe for haggling.

Botched Republican pitch bodes ill for tax cuts

2 Nov 2017

The revised plan only partly deals with criticism it benefits the rich. White House salesmen Gary Cohn and Steven Mnuchin did their own damage by defending cuts for the wealthy and vastly overstating middle-class income. Such poor marketing puts Trump’s economic goals in danger.

The Exchange: Mark Meadows

26 Oct 2017

The congressman and chair of the Freedom Caucus thinks neither Republicans nor Democrats have had success in being the governing party. The Exchange went to his office to discuss what that means for tax reform and other issues, and why members of Congress could lose their jobs.

Republican tax-reform hopes have yet to hit reality

24 Oct 2017

A giddy GOP looks set to pass a budget resolution to pave the way for a tax overhaul that the House aims to approve by Thanksgiving. Members haven’t solved their deficit dilemma, though, and President Trump has shot down potential revenue raisers. The hard work is just beginning.

U.S. tax outlook opens M&A pricing divide

18 Oct 2017

Republicans want to cut the corporate rate to 20 pct, but the timing is as uncertain as the outcome. Theoretically, profit – and thereby valuations – could get a 23 pct boost from lower taxes. Sellers want that priced in, but buyers won’t. All-stock deals could be one answer.

Trump’s petty fight upsets art of the tax deal

9 Oct 2017

The U.S. president’s relationship with Republican lawmaker Bob Corker soured further during a Twitter argument. Yet the Tennessean’s support is critical to push tax reform in the Senate, where the GOP has a slim majority. The squabbling endangers a plan that is already under attack.

White House economist drinks Trump’s Kool-Aid

5 Oct 2017

Tax cuts will pay for themselves through economic growth, says Council of Economic Advisers chief Kevin Hassett. He also backed the U.S. president’s protectionist policies, despite being a “full-blown free trader.” That’s one aide fewer willing to dispute voodoo economics.

Guggenheim sells its way to some rare good news

29 Sep 2017

The Wall Street firm has snagged a hefty 12 times EBITDA from Invesco for its ETF unit. The buyer also bags a big tax break, but barely gains ground on industry giants. Guggenheim, meanwhile, pockets a welcome $1.2 bln distraction from months of debilitating executive squabbling.