Tax

New Irish leader is more like Renzi than Macron

5 Jun 2017

Leo Varadkar will be Ireland’s youngest prime minister, prompting comparisons with France’s Emmanuel Macron. Parallels with Italy’s former PM Matteo Renzi are more apt. His government is weak, and he could be at odds with Europe on Ireland’s chief challenges of Brexit and taxes.

Labour’s risky UK manifesto requires Brexit context

16 May 2017

Britain’s opposition party has outlined tax rises for companies and the rich to pay for higher spending. Potential payers could get around them. Yet what Labour is proposing isn’t that much more risky than the “hard Brexit” the ruling Conservative party may deliver.

Chinese taxpayers have most to fear on Silk Road

16 May 2017

President Xi pledged $124 bln at an international summit to build a modern version of the ancient trading route. Huge global infrastructure spending will burnish Beijing's standing. But the hype could backfire if citizens of the People's Republic fail to reap tangible benefits.

Levy takes some sheen off Australian banks

10 May 2017

The government is slapping a 6 bps levy on big banks’ liabilities. The move will rake A$6.2 bln into federal coffers and shows bank-bashing is good politics, even in countries that weathered the financial crisis well. At least the sector is strong enough to absorb the hit.

Kansas’ fiscal fiasco a warning for Trump tax plan

3 May 2017

The president’s tax plan echoes sweeping cuts by the Plains state in 2012. The GOP governor’s bet on trickle-down economics slashed revenue but failed to spur growth. Lawmakers now want to reverse the reductions amid a school-funding crisis. It may be a crystal ball for D.C.

Hadas: Basic income is basically confused

3 May 2017

As new technology threatens job security, the dream of giving all citizens a simple payment is making a comeback. But the idea is too expensive to be practical. It also ignores the biggest drawback of modern welfare states: that lives are complicated and people are not angels.

India’s Minister for Everything poses a problem

3 May 2017

Finance Minister Arun Jaitley also oversees defence and corporate affairs. Rolling out a giant tax reform, tackling bad debt, and managing military spending is too much for one person. It reflects a talent crunch in New Delhi as much as the playbook of a strongman ruler.

Theresa May has a way out of UK pension pickle

28 Apr 2017

The prime minister is dithering over whether to keep guaranteeing above-inflation hikes to pensioners. The triple-lock is nonsensical, inequitable and unfit for an era of Brexit and stagnant wages. May has the political capital to adopt a fairer single-lock, tied to earnings.

Archived tax plan could help White House close gap

27 Apr 2017

Donald Trump's bullet points, summarizing earlier campaign ideas, would add trillions to U.S. deficits over 10 years. Ex-Congressman Dave Camp sketched out a more balanced plan three years ago. It may offer a blueprint, albeit with smaller business-rate cuts than Trump wants.

Trump’s sketchy tax math will fail Congress test

26 Apr 2017

The president’s plan for big rate cuts relies on the unrealistic assumption that GDP will hit 3 pct and be enough to cover any revenue shortfall. The U.S. deficit, though, is growing at an alarming pace. Republican lawmakers are likely to demand a do-over before giving it a pass.

Trump’s first 100 days provide more art than deal

24 Apr 2017

The U.S. president is planning a flurry of events before Saturday's landmark, including another try at repealing Obamacare and the unveiling of a tax plan. Promised early policy wins have yet to materialize though. Given his record, he’d be wise not to risk a Washington shutdown.

Indonesian tax amnesty odd help for private banks

10 Apr 2017

A tax amnesty that saw citizens declare $365 bln in assets has been a blessing in disguise for top private banks. The ultimate outflows to Indonesia were a fraction of the headline amount. More importantly, the scheme gave lenders the excuse to do some overdue spring-cleaning.

Credit Suisse raid jabs at private bank model

3 Apr 2017

The Swiss bank has stressed zero tolerance for tax evasion after authorities swooped on three offices. Credit Suisse may be scrupulous, but managing money for the wealthy brings certain recurring risks – not least because of Swiss private banks' historic pledge of utter secrecy.

Saudi finds cheap way to be generous to Aramco

28 Mar 2017

The kingdom has slashed its oil major’s tax rate to juice up a potential IPO. That could theoretically triple the company’s market value to well over $1 trillion. Yet because Saudi will keep a 95 pct stake, the state can recoup almost all of what it appears be giving away.

Britain’s budget U-turn merits Brexit deal alarm

15 Mar 2017

Chancellor Philip Hammond has reversed last week's tax hike for self-employed workers. As EU exit negotiations begin, the UK critically needs a united government that can be firm in the face of political pressure. Ditching a defensible reform implies the opposite.

Latam tax amnesties test private banks’ stamina

6 Mar 2017

Latin American countries are finding that tax forgiveness programs can bring billions in hidden assets into the open. UBS and Credit Suisse are discovering that the process can cause chunky asset outflows. Moving onshore could help the Swiss giants retain their share of the pie.

Mnuchin’s stock-market brag is double-edged sword

23 Feb 2017

The new U.S. Treasury chief says the equities rally reflects faith in Trump and his promises of tax reform and fiscal stimulus. Both need Congress's say-so, and may bring higher inflation. Anti-immigrant and trade policies could also mute market gains. Mnuchin's boast is risky.

Struggling U.S. retailers take aim at border tax plan

15 Feb 2017

CEOs from the likes of Target and Gap are meeting with President Trump to voice concern over proposed border taxes. With store closings and job cuts accelerating, a levy that raises prices for consumers would add to the woes of an industry that's America's largest private-sector employer.

Credit Suisse lure just visible beneath the warts

14 Feb 2017

The Swiss bank's socking 2.3 bln Swiss franc fourth-quarter loss followed a charge to settle U.S. mortgage litigation. Equities trading and Asian investment banking were dismal. But private banking and balance-sheet resilience favour Credit Suisse's stock over richer-priced UBS.

Switzerland shoots itself in foot on tax reform

13 Feb 2017

Voters rejected a government plan to balance low corporate rates with global reforms. That might make sense if international cooperation on tax fails. But the Swiss are mainly hoping to avoid higher personal taxes. If multinationals flee, these will happen anyway.