On the morning of June 24, Europe woke up with a bad hangover. The continent didn’t know whether the events of the previous day and evening were real, or just the remnants of a long, bad dream. Then, like on most post-binge mornings, the sun hit Europe in the eye, and reality began to sink in – the voters of Great Britain had decided they wanted to leave the European Union.
Tax Analysts Blog
There are three tax ideas that may pass in the New Jersey Legislature. They are important because they are good ideas. They are important because, well, New Jersey is not exactly a paragon of sound tax policy.
Reacting to the success of the Leave campaign in the United Kingdom’s referendum on continued membership in the European Union, the alarmist headline of a New York Times article foreshadowed a nation stepping into “uncharted territory.” Surely a country that has not been successfully invaded since 1066, that forged the concept and practice of parliamentary rule, and that as late as seven decades ago exercised sole dominion over a quarter of the world’s total land area and an equal proportion of its population would have left in its possession a few maps with which to chart its own sovereign course once again.
Bernie Sanders won’t withdraw and won’t endorse Hilary Clinton. He has promised to vote for the presumptive Democratic nominee – and to campaign against Donald Trump. But for the time being, he’s staying in the “race,” determined to boost his leverage within the Democratic Party.
It is hard to overstate the magnitude of the shock wave emanating from the United Kingdom in the wake of voters' decision to exit the EU. The surprising victory of the Leave campaign will almost certainly prompt introspection on the part of EU leaders and force the next U.K. prime minister to confront the serious possibility of a major recession and tangled trade policy. Where the Brexit vote might have a more subtle impact is on the U.K. tax regime.
In many small shops customers see a sign advising, “If you break it, you’ve bought it.” This warns shoppers to take extra care when handling the merchandise. Unfortunately, voters in the U.K. received no such simple warning before they voted to leave the European Union, effectively dropping their country on the concrete like a cheap ceramic souvenir – likely breaking it into three pieces.
Evolutionary changes typically occur at a glacial place. In the tax world, however, we are witnessing a paradigm shift that’s occurring far more rapidly. I’m referring to the rise of automatic information exchange between national revenue bodies. This was unthinkable just a few short years ago.
This will be music to the ears of some incentive-philes. Royal Dutch Shell, the ginormous energy company, has announced plans to build a petrochemical plant in Beaver County, Pennsylvania. Shell will invest billions of dollars in a state badly in need of investment and create thousands of jobs in a state badly in need of jobs. So let's stipulate that Shell building a giant plant that will employ thousands of people is a good thing for my home state of Pennsylvania.
Donald Trump's tax plan isn't particularly well developed, but he does make his position clear on one major international tax issue. Trump would retain the United States' worldwide tax system while eliminating the deferral of taxes on foreign profits. This position is at odds with many reform plans featuring a switch to territoriality, and it is very close to the preferences of Democratic Sens. Ron Wyden and Bernie Sanders. All three politicians are right -- it is time for the United States to end deferral and finally level the playing field between domestic and foreign profits.
Establishment Republican leaders, having consulted their textbooks for the definition of racism and concluded that it encompasses their improbable standard-bearer Donald Trump’s cringe-worthy attacks on the Mexican-American federal judge presiding over the Trump University trial, have moved on to try to further mainstream their presumptive nominee’s candidacy by pressuring him to release his tax returns. Senate Majority Leader Mitch McConnell, who a month ago said Trump would “have to make that decision himself,” now feels emboldened enough to declare, “For the last 30 or 40 years, every candidate for president has released their tax returns, and I think Donald Trump should as well.”