How vulnerable are states to outside attacks . And why the socalled tech lash has only made facebook stronger. 10 straight weeks of antigovernment protests in hong kong are raising fears about the one country, to systems policy that has prevailed since the british hand over. We have been talking about it almost every issue, ever since they broke forth, but what really happened was the airport, clashes at the airport. We really felt like it had become a tipping point, all eyes on hong kong. When we really stepped back and thought about the perspective we could bring to this story, one of the things that came out of the conversation was where is it coming from . One of the things we realized is ,hat it is about 24 7, 2047 when hong kong was handed back to china, one country, to systems being this guiding idea for how it would be managed. That is the Expiration Date for that. When you think about the stakes of the situation, five years out isnt enough time to solve that 10 years out isnt
Vulnerable are states to outside attack, and why the socalled tech lashes only made facebook stronger. 10 straight weeks of antigovernment protests in hong kong are raising fears about the one country, to systems policy that has prevailed since the british hand over. Heres the businessweek editor joel weber. We have been talking about it almost every issue, ever since they broke forth, but what really happened was the airport, clashes at the airport. We really felt like it had become a tipping point, all eyes on hong kong. When we really stepped back and thought about the perspective we could bring to this story, one of the things that came out of the conversation was where is it coming from . One of the things we realized is when hongabout 24 7, kong was handed back to china, one country, to systems being this guiding idea for how it would be managed. About the stakes outhe situation, five years isnt enough time to solve that 10 years out isnt enough. Our thesis for this story by the
The result if the fed moves. Doc, whats the market going to do now that almost everyone is saying two to three this year . Not almost everyone, first of all. This guy is an outlier and he is going to be wrong, wrong, wrong. He will be wrong about this year, 2016. He will be wrong about 2017. Hes basically or is saying seven rate hikes within by te the end of 2017. Aint happening. No way, no how. This is the Perfect Point to have the conversation of whether the market is truly ready. Is the market ready . Absolutely not. I dont think the markets ready for two or three rate hikes this year. If you look at the most expensive sectors in the s p, they are basically sectors that have done really well because rates have gone nowhere for seven years. My take is that so our house view is we will see one rate hike this year. I think the market might be positioned for that. But anything more than that would actually roil the markets, especially in june. I do not think the market is poised for pot
Need to leave. Any comments on that. Steve, do you want to start . Sure, i can address that. I do not think shifting to a territorial system is right. The two problems that weve highlighted here are earning stripping and the deferred accumulated earnings of these controlled foreign corporations. If we shift to a territorial system in which a u. S. Company is only taxed on its u. S. Source income, and not taxed on its foreign income, there will be all the more incentive for multinationals to strip income from the u. S. Base and shift it abroad. Isnt that the first step and then you deal with all those issues let me finish my answer. So as part of any consideration of territorial, we need to address the earnings stripping issues that were discussing here. One of the observations professor shay made in his article, he wanted treasury to adopt regulations that could fold into tax reform and weve got to address earning stripping and we have to do it sensibly and i think we could fold that i
Tax rate of those companies to be reduced. And thats why were talking about this subject. So it appears that having a bow tie is not an indication of prof sor yal stature but tax planning. John, you started us off by talking about the fact that your view, this set of practices were a symptom of a larger set of drivers in the Corporate Tax structure and that ultimately and i think you wouldnt get any disagreement with anyone here we need to be addressing those larger drivers. But in the context of the current debate, first of all, can i ask you to ask would the measures that steve and steve have put on the table be effective and then we can go beyond that to say should treasury take it. Lets start with the effective. So the answer is i dont think so. But theres an overarching point before i get back into the weeds which is why are we trying to raise the bar so it will be harder for companies to leave the United States. Why arent we trying to do something to make it more attractive for t