Posts tagged with: Business/Finance

fight forRobert Reich seems to be a smart man. He served under three presidents, and now is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California, Berkeley. His video (below) says raising the minimum wage is the right thing to do. Unfortunately, he gets it all wrong.

Donald Boudreaux of the Cato Institute notes a couple of errors in Reich’s thinking. First,

Ignoring supply-and-demand analysis (which depicts the correct common-sense understanding that the higher the minimum wage, the lower is the quantity of unskilled workers that firms can profitably employ), Reich asserts that a higher minimum wage enables workers to spend more money on consumer goods which, in turn, prompts employers to hire more workers.  Reich apparently believes that his ability to describe and draw such a “virtuous circle” of increased spending and hiring is reason enough to dismiss the concerns of “scare-mongers” (his term) who worry that raising the price of unskilled labor makes such labor less attractive to employers.

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greece for saleGreece has had to deal with a very uncertain economic outlook over the past decade or so, but now it’s getting downright ugly. Greece owes over $1 billion this month in debt repayments, along with pensions, government salaries and other obligations. They likely don’t have the money.

The rapidly deteriorating Greek economy makes its already daunting debt pile even harder to manage, a key point of contention between Athens and its lenders. The [European Commission’s] latest forecast reckons that Greece’s debt will reach a whopping 180% of GDP this year, much higher than expected in recent months. Greece’s most recent bailout agreement called for its debt-to-GDP ratio to fall to 110% by 2022, which looks nearly impossible without some sort of restructuring, write-down, or default.

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An employee at Indiana-based Carson Manufacturing

An employee at Indiana-based Carson Manufacturing

There is a group of workers out there who are uniquely qualified for many jobs, intensely interested in working and being as independent as possible, often joyful in attitude and thankful for the little things many of us take for granted.

They are adults with cognitive and intellectual disabilities.

I’m not talking about “pity” jobs here. I’m talking about people with real talents who are looking to share those talents with others in a way that is mutually beneficial. Most of us call that a “career” but for the disabled, a career can be hard to come by. Chalk it up to misunderstanding, ignorance and prejudice. However, businesses are getting on board.

More and more companies out there are realizing there’s an untapped pool of talent that makes for very good workers,” [said] Peter Bell, President and CEO of Eden Autism Services, “Employers are becoming interested in hiring these people not because it’s charity, but because it’s the right business decision.”

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debt-collection-final-noticeFor decades The Episcopal Church (ECUSA) has faced declining membership (in 1966, the ECUSA had 3,647,297 members; by 2013, the membership was 1,866,758, a decline of 49 percent.) But even when people are leaving the pews someone still has to pay for those pews, as well as the other overhead costs that come with running a large organization. Not surprising, the denomination has sought ways to bring in additional revenue.

Currently, the ECUSA has two primary sources of income. According to its latest audited financial statements for the calendar year 2013, it received a little over $27 million from its member dioceses, and it received half as much again, or $13.8 million, from the federal government.

As A.S. Haley notes, the money ECUSA received from the federal government was in connection with the services provided by Episcopal Migration Ministries, which assists the State Department in relocating refugees throughout the United States. That is certainly noble and necessary work, and the denomination should be commended for providing a valuable service to a vulnerable community.

But as Haley points out, the records show the ECUSA also makes a lot of money as a debt collector:

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This past week, The Huffington Post’s Paul Blumenthal offered up a piece of agitprop masquerading as trenchant political analysis. It seems – well, not seems inasmuch as Blumenthal pretty much declares outright – that he isn’t much of a fan of the U.S. Chamber of Commerce’s antipathy toward shareholder proxy resolutions promoting political spending disclosure policies. Likewise, writes Blumenthal, three other “usual suspects” – the Business Roundtable, the National Association of Manufacturers and The Wall Street Journal – are aligned with the Chamber against all that the left considers right and proper regarding corporate political transparency and disclosure.

In the article, tellingly titled “The Chamber of Commerce Is Fighting Fiercely to Stop the Scourge of Corporate Transparency,” Blumenthal writes as if guided by the hands of the Center for Political Accountability’s Bruce Freed and the religious activists at As You Sow and the Interfaith Center for Corporate Responsibility:

This spring, shareholders in more than 100 companies will introduce resolutions calling for greater disclosure of corporations’ political and lobbying activity. Six major companies — Dean Foods, Eastman Chemical, H&R Block, Marathon Oil, U.S. Steel and Valero Energy — have already reached agreement with New York state Comptroller Thomas DiNapoli, who oversees the third largest pension fund in the nation, to adopt political spending disclosure policies in exchange for the comptroller’s office withdrawing its resolutions.

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Blog author: jcarter
Wednesday, April 15, 2015
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7figuresToday is tax day, the day when individual income tax returns are due to the federal government. Here are seven figures you should know about tax day:

1. The average federal tax rate for all households (tax liabilities divided by income, including government transfer payments) before taxes is 18.1 percent.

2. Households in the top quintile (including the top percentile) paid 68.8 percent of all federal taxes, households in the middle quintile paid 9.1 percent, and those in the bottom quintile paid 0.4 percent of federal taxes. (Quintiles — fifths — contain equal numbers of people.)

3. Social insurance taxes (e.g., Social Security, Medicare) account for the largest share of taxes paid by households in all but the top quintile.

4. The U.S. tax code is approximately 2,600 pages long (about 1.5 times longer than Tolstoy’s War and Peace and 2.5 times longer than Ayn Rand’s Atlas Shrugged).

5. At midnight, the U.S. Treasury gets an extra $760 million. Taxpayers have three years to claim refunds, so the $760 million that is owed to 918,600 people will, by statute, go to the governments coffers tomorrow.

6. If you’re owed a refund, you won’t get in trouble if you miss the April 15 filing deadline. But if you’re wrong and you actually owe money, you’ll incur a maximum penalty of 5% for each month after the deadline. If you’re more than 60 days late, you’ll be fined $135, or 100% of the unpaid tax — whichever amount is smaller.

7. Examining 30 years of road crash data from the National Highway Traffic Safety Administration, researchers found that fatal car crashes increase 6 percent on April 15.

Millennial-Entrepreneurs-Infographic-1024x793Millennials are obsessed with entrepreneurship, says Elise Amyx. Some are attracted to entrepreneurship out of necessity, while others want the freedom that comes with building their own business. And some Christian Millennials want to redeem free enterprise:

In part, redeeming capitalism means doing more than just making a profit. Consider Chick-fil-A’s decision to bring chicken sandwiches and waffle fries to people stranded in their cars during a snow storm. Or Whole Foods’ decision to donate 5 percent of its profits to a philanthropy. Or Warby Parker: when someone buys a pair of the company’s eyeglass frames, it donates a pair to someone in need.

Millennials admire socially conscious business models. And many are starting their own. One place you might find the Christian-hipster-entrepreneur type is the annual Q conference, where attendees pitch their startup ideas with Praxis. Founded in 2010, Praxis is focused “on equipping and resourcing a growing portfolio of faith-motivated entrepreneurs who have committed their lives to cultural and social impact, renewing the spirit of our age one organization at a time.” It’s a Christian entrepreneur-training hotbed for nonprofit and business startups alike. Kammock, which creates high-quality outdoor products, Man Crates, which packs and delivers gifts for men, and Jonas Paul Eyewear, which provides functional eyewear for children, all participated in the program during their infancy.

Read more . . .

29taxes.2-500In an attempt to trap Jesus, some Pharisees and Herodians asked him, “Is it lawful to pay taxes to Caesar, or not? Should we pay them, or should we not?” In response, Jesus said,

“Why put me to the test? Bring me a denarius and let me look at it.” And they brought one. And he said to them, “Whose likeness and inscription is this?” They said to him, “Caesar’s.” Jesus said to them, “Render to Caesar the things that are Caesar’s, and to God the things that are God’s.”

The Pharisees and Herodians “marveled” at Jesus answer, but had they asked an agent of the Roman IRS they likely would have been given a similar answer.

Governments have always had to contend with citizens who make what are considered “frivolous tax arguments” to avoid complying with tax laws. Such arguments rarely work (it’s usually not effective to try to present a creative interpretation of tax law to the people who interpret tax laws) but people keep trying.

The IRS has an entire list of responses to the most common frivolous tax arguments. Here are four of my favorites:
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J.C. Huizenga Photo from Mlive

Employees of the Huizenga Automation Group got a great surprise earlier this week. According to Mlive, after selling the company, owner J.C. Huizenga gave away $5.75 million in bonuses to his employees at two manufacturing companies that were part of the Automation Group. Huizenga acknowledged that his success was due to the work of his employees so he wanted to share his profits with them: “We all worked together at J.R. Automation and Dane Systems” and the companies “had amazing success. It was the right thing to share with everybody.” Bonuses were based on years of service and responsibilities:

The bonuses ranged from $500 for new employees to more than $50,000 for those who had worked at the company the longest, Huizenga told MLive and The Grand Rapids Press…

“It was our intention that everybody from the latest hire to those who were there the longest all participated so everyone got something,” said Huizenga, adding that he was seeking fairness.

Around $5 million was split up among 500 employees at J.R. Automation, while 70 employees at Dane Systems received around $750,000.

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extreme-povertyCan the world put an end to extreme poverty within the next 15 years?

That’s the current goal of the World Bank, and its expected that the United Nations will adopt that same target later this year.

In 1990, the UN’s Millennium Development Goals included a target of halving poverty by 2015. That goal was achieved five years early. In 1990, more than one-third (36 percent) of the world’s population lived in abject poverty; by 2010 the number had been cut in half (18 percent). Today, it is 15 percent.

Extreme poverty is defined as living on less than $1.25 a day. The new goal is to move almost all the world’s population about that line by 2030. Is that even possible?
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