Trinh Profile picture
Sep 20, 2019 14 tweets 5 min read
India is cutting the corporate tax rate to 25.2% from 30%. This is to promote growth and investment.

India to allow local companies to pay income tax at 22% . The new effective rate on new manufacturing companies is 17.01%.

All part of the strategy to avoid the 5% growth trend
Indonesia is planning to cut taxes to 20% from 25% starting 2021. Both Indonesia and India are slashing tax rates to be more competitive. This is in response to entice investors to come to those countries & also to stay. @Trinhnomics stated that US tax reform'll push for this too
👇🏻👇🏻👇🏻 #MakeinIndia #India

New domestic manufacturing companies incorporated after October 1, can pay income tax at a rate of 15%without any incentives.

Meaning, the effective tax rate for new manufacturing companies will be 17.01% inclusive of all surcharge and cess.

👏🏻👏🏻👏🏻
India is saying, come come QUICKLY!!! 🤗🤗🤗🇮🇳👏🏻🥁🤗
The Sensex is off the chart +3.4% today & since the news broke:

Equities RALLIED 👏🏻👏🏻👏🏻
Bonds FIZZLED (less revenue, more growth, etc so not good for bonds)
India decided that it is not going to be victims of trade-war but victors by putting targeted cut on manufacturing. The push by investors to diversify from higher wages and land, lower incentives, and now higher tariffs is finding a pull by the Indian government w/ the 15% tariff
This is a very targeted move by the Indian government and considered a very welcomed move by investors thirsting for diversification.

India is the only country comparable to China & its population will be #1 in the world in six years. That is a huge latent growth ingredient!!!
Just to clarify, the NOMINAL TAX CUTS ARE:

30% ✂️✂️✂️ to 22%
New manufacturing will be 15%.

But EFFECTIC tax rates of 30% to 22% is ~25% (with all the levies etc). The effective tax rate of new manufacturing is 17% (w/ other levies etc). This is about the same as Singapore!
Should be EFFECTIVE not effectic. Wooops 🤦🏻‍♀️
This is a huge BIG BANG for India because it shows a commitment to PULL investors that it did not show before & the pace and scale of cut is a big signal for more to come.

Today is a big day. That is a big tax cut. India just slashed nominal tax by 8% & targeted manufacturing!!!
@nsitharaman did a great job to awake the sleeping giant! She commented that she is working hard on fiscal measures to help growth regarding criticism on @Twitter on glacial pace of reform. Today she:
Lowered rates to 22% from 30%
Make a WELCOME TO INDIA SIGN w/ 15% manu rate👏🏻
@nsitharaman @Twitter Have been leading the charge here regarding criticizing India's glacial pace of reform & potentially missed opportunity. And thank u! Excited to see more coming from India soon! India is the future but it needs to pave that road for itself w/ reforms & seems like it's doing it👏🏻!
@nsitharaman @Twitter Welcome to India 🇮🇳: Doors are open for investment. Come, come, quickly!!! Quickly!

Tax rates lower, esp for new manufacturing (only 15%) starting 1 October 2019!!!💥

🔥🔥🔥🇮🇳
@nsitharaman @Twitter Investors cheered this by pushing the Sensex off the chart at +6% - they are voting w/ their feet & they are buying!!!!👇🏻👇🏻👇🏻

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More from @Trinhnomics

Feb 15
I watched the Edge of War the other day & it's about Chamberlain appeasement to Hitler in Munich. He thought that appeasing Hitler's thirst to invade stops with giving him the Sudenteland from his ally Czechoslovakia would end in peace.

He gave a speech afterwards about peace.
Of course you know what happens next, Hitler ambition wasn't just the Sudenteland. He was so happy with Chamberlain's wishful approach to geopolitics and proceeded to attack its neighbors. It took the invasion of Poland for war to be declared by the UK on 3 September 1939.
Read 4 tweets
Feb 10
Good morning! Shall we discuss something a bit more structural, although this is a cyclical theme in 2022 across Asia, from China to India and Southeast Asia. Let's talk about #infrastructure , which is the theme of the hour & the next decade🛣️🌉🚆📶⚡️

@natixis @NatixisResearch
Today, infrastructure stocks are soaring in China as hope of government policy leaning towards this sector to shore up domestic demand in sagging growth momentum.

In India, infrastructure has been a big theme & even more so after the expanded budget that prioritizes it ⏫📈.
Why is infrastructure the theme of the hour and the next 2 decades? Simply put: infrastructure is essential for the improvement of the quality of life, production of goods, services and to raise productivity of labor.

Demand for infrastructure is high & will sky rocket.
Read 36 tweets
Feb 7
Good morning! Hope you have a great Lunar New Year and happy Tet! I did even if it was uneventful. First year as a mom and giving out lots of li xi. Now, back to our regular programming of daily reminder of brent 92.8/barrel and markets completely priced out negative rates in EUR
Let me put this another way, Brent crude is +19.35% so far this year and other commodities like palm oil is up too.

I hope u listened when I said you should fear inflation more than Omicron. The Scandinavians have decided that pandemic is over.

Anyway, let's stay w/ inflation.
Let's look at global rates - what do you see? Or shall I say it differently, what don't you see?

NEGATIVE EUROPEAN RATES, esp BUND.

Ok, why? Inflation! I told you, central banks DO NOT PROMISE YOU A ROSE GARDEN. Christine changed her tune when CPI hit 5.1%.

So did JPO at 7%
Read 10 tweets
Jan 30
Highly recommend this story for everyone to read. First, it is beautifully written & honest, especially the part about the fear of not being chosen during HS for class assignments. Second, it gives us insight on the little things we need to do to enable mobility for the disabled.
As a mother, I wheel my baby around the city a lot. He can’t walk yet & too heavy to carry around. And when I stroll him around, I notice that Hong Kong is not wheel-chair/stroller friendly at all. Pavements don’t have a natural curve to enable u to go straight & so u can’t move
I actually haven’t seen any wheel chair around Hong Kong unless it is being pushed by someone & just on a few roads where this is possible.

Accessibility is limited & can’t tell u how excited I get when I see a ramp.

But my angst is a sliver of what disabled people face.
Read 5 tweets
Jan 27
Good morning! Shall we talk about US Q4 GDP? It was gangbuster at 5.5% YoY (we use this to compare to Asian countries) or this is what Q4 2021 vs Q4 2020. Nominal GDP grew 11.7%YoY and so US nominal GDP expanded 10.2% in 2021.

Fed is still doing QE & rates are close to zero.👈
I compare the quarterly %YoY chart here of the US nominal, US real and China real GDP. Note that as China decelerates towards 4% in Q4, US GDP accelerated to 5.5%.

Last year, the US grew 5.7% in 2021 vs 2020 (which fell -3.4% vs 2019) so a lot of it is making up for lost time.
US nominal GDP was USD22.99trn or USD23trn (good number to remember so when people say this is X% of GDP). And so it added 2.1trn or 10% in 2021 to total 23trn by end of the year.

Now what does that say about 2022? If consensus is right, going to be about 25trn by end of this yr
Read 5 tweets
Jan 27
This report by @business is just great! Congress ownership of tech makes tech regulations awkward! Guess who owns a ton of tech? @SpeakerPelosi

And will she regulate? So far, she's not keen to! She doesn't want to regulate tech. We wonder why...

>100 million dollars invested🤗
Asked by reporters whether she should regulate tech, she responded, "We are a free-market economy." And she hated the idea.

I wonder why? >100 million dollars at stake for her
Congressional trading persists!!! Yes, persists! This is a person that has been around in government since the 1980s and is seeking re-election at 81 years old whose family own >100 million dollars in tech.

Do we have a conflict of interest here? Do we? Hmm
Read 7 tweets

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