Links - Dec 14
Currencies: Yuan direction - Financial Times - on the nascent offshore renminbi market, reminiscent of the Eurodollar market's emergence half a century ago, and echoing what we said a few days ago. “We may be on the verge of a financial revolution of truly epic proportions,” says one HSBC analyst. “The world economy is, slowly but surely, moving from greenbacks to redbacks.” This thing starred in July this year, and is one to watch for the long term.
Art Laffer: Make Up Your Own Facts Here - Barry Ritholtz. Dismembering a Wall St. Journal article by Arthur Laffer himself, point by point. "In his OpEd, Mr. Laffer confuses causation with correlation, ignores market history, makes spurious argument, and simply make up crap as he goes along. . . I believe the vernacular term for this form of argumentation is “full of shit."
Corporate Income Tax archive - The Progressive Economics Forum. Corporate income taxes from a Canadian perspective. Looks interesting.
Tax privileges - Swissinfo video showing why so many international companies are coming to Switzerland: to ensure that others pay their taxes for them. The international holdings have privileges that not even Swiss firms enjoy. "I don't know if it is a good thing trying to keep up in this undercutting spiral," an Antwerp business promoter points out. "One shouldn't put one's country for sale, but compete fairly with other countries." Former Swiss finance minister Merz is caught lying on camera: "We don't poke our noses into the tax systems of other countries." Oh yes you do.
Lenihan Announces Super Tax On Irish Bankers - Tax News. The Irish Minister for Finance, Brian Lenihan on December 9 announced that the government would be pushing through legislation to enforce a prohibitive 90% tax on the bonuses of banking sector employees in state-supported banks
Why tax avoidance is a breach of contract - Tax Research A limited liability company gives its shareholders the most phenomenal economic privilege: they cannot be sued for the debts the company incurs if all goes wrong even though they get all the benefit if things go right. That’s an astonishing privilege. It is not a right but a privilege granted by parliament on behalf of the people. he privilege carries with it at least two implicit responsibilities. The first is to account for how the privilege is used. The second obligation is to pay for the privilege.