The author is a Reuters Breakingviews guest columnist. The opinions expressed are his own.
Hugo Dixon is Editor-at-Large, Reuters News. The opinions expressed are his own.
Britain’s treatment of its so-called “non-doms” gives some rich people an unwarranted tax break. If they qualify as being “domiciled” abroad, even if they live in the UK permanently, they can pay tax only on income generated in Britain. Britons usually have to pay tax on their global incomes.
Matteo Renzi’s Plan A is to push through domestic reforms, hope the European Central Bank manages to get inflation ticking up, and keep his fingers crossed the Italian economy stops shrinking. But if this fails, a mega wealth tax, debt restructuring and/or exit from the euro beckons.
Cyprus’ deposit grab sets a bad precedent. Money had to be found to prevent its financial system collapsing. But imposing a 6.75 percent tax on insured deposits – or even the 3 percent being discussed on Monday morning – is a type of legalised bank robbery. Cyprus should instead impose a bigger tax on uninsured deposits and not touch small savers.