Posts tagged with: Business/Finance

Blog author: jcarter
Wednesday, April 15, 2015

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:


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.


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?

rubio-leeWhat is the Rubio-Lee Plan?

The plan—officially titled the “Economic Growth and Family Fairness Tax Plan”—is a white paper in which Senators Marco Rubio (R-Florida) and Mike Lee (R-Utah) lay out a tax reform proposal they believes will “resolve these major problems in the tax code.”

What’s in the plan?

The plan has two main sections, one “pro-growth” and one “pro-family.” The pro-growth side of the plan includes seven recommended changes:

Blog author: dpahman
Friday, February 27, 2015

Yesterday the FCC reclassified Internet Service Providers (ISPs) as a telecommunications service under Title II of the Communications Act, with additional provisions from Title III and Section 706 of the Telecommunications Act of 1996. This was done for the purpose of ensuring net neutrality or open internet access, requiring ISPs to treat all data on the internet equally. Notably, yesterday’s Order also includes mobile broadband for the first time as well.

In a press release, the FCC claims,

Together Title II and Section 706 support clear rules of the road, providing the certainty needed for innovators and investors, and the competitive choices and freedom demanded by consumers, while not burdening broadband providers with anachronistic utility-style regulations such as rate regulation, tariffs or network sharing requirements.

I have expressed concerns in the past about the smattering of regulations available under Title II, far beyond what would be required for net neutrality. On the surface, the press release would seem to indicate that the recent Order was designed to attempt to prevent those further regulations from being available to the FCC: (more…)

and112812blogNear the top of the list of things I despise is companies that take advantage of the plight of the poor and desperate. But just above that on my list is something I hate even more: being poor and desperate. That’s why I loathe payday lending companies that charge usurious interest rates—and why I’m not yet ready to see them abolished.

Here’s how payday lending works. If you have a job (and pay stub to prove it), a payday lending company will allow you to write and cash a post-dated check. For this service the company will charge an absurd interest rate. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent. So if you need $100, you write the check for $115 and they’ll give you $100 in cash. Two weeks later they cash your check or you can renew or “rollover” the amount—for an exorbitant fee.

Why would anyone agree to such terms? Because they have no other choice. About twenty years ago I made some terrible choices and found myself in a serious financial bind. The amount I needed wasn’t much—about $200—but without it I wouldn’t have been able to pay my rent. I took out a payday loan that cost me $30 every two weeks. It took about eight weeks to get clear of the loan, resulting in a cost of $120 to borrow $200 for two months.

If you’re middle class and think of it in terms of interest rate, that repayment cost sounds appalling usurious. And it is. But as the poor will tell you, man does not live on APR alone. Having to pay an extra $120 was cheaper than having to find a new place to live. Yes, it was a bad deal. But it was better than all my other choices.

That is why I believe every serious critique of payday lending needs to be accompanied by a serious proposal to help those who are trapped by such “poverty problems.” An excellent example of an alternative approach is the one offered by Wesley Memorial United Methodist Church in Richmond, Virginia. One of their church members, Nina McCarthy, was initially trapped in the vicious payday lending circle:

7figuresEach year the International Bulletin of Missionary Research lays out in summary form an annual update of significant religious statistics. Here are seven sets of figures based on their latest report:

1. Global population by religion: Christians – 2.38 billion; Muslims – 1.7 billion; Hindu – 1 billion; atheists – 136 million; Jews – 14 million.

2. Membership by 6 ecclesiastical megablocs: Catholics – 1.2 billion; Protestants – 441 million; Independents – 407 million; Orthodox – 280 million; Anglicans – 92 million; Unaffiliated Christians – 110 million.

3. Number of Christians by 6 continents, 21 UN regions: Africa (5 regions) – 520 million; Asia (4 regions) – 368 million; Europe (including Russia; 4 regions) – 561 million; Latin America (3 regions) – 562 million; Northern America (1 region) – 229 million; Oceania (4 regions) – 25 million.

4. Christian organizations: Denominations – 45,000; Congregations – 4.7 million; Service agencies – 30,000; Foreign-mission sending agencies – 5,000.

5. Christian finance (in US$, per year): Personal income of church members – $35 trillion; Giving to Christian causes – $626 billion; Churches’ income – $249 billion; Parachurch and institutional income – $377 billion.

6. Scripture distribution (all sources, per year): Bibles – 80 million; Scriptures including gospels, selections – 5 billion; Bible density (copies in place) – 1.8 billion.

7. World evangelization: Unevangelized population – 2.1 billion; Unevangelized as % of world: 29.2 percent.

Divestment-600-AEA-1Your faithful correspondent last week exposed the fossil-fuel divestment endgame of religious shareholder activists. As You Sow President Danielle Fugere sees her group’s activities as awareness-raising exercises for climate change, but AYS’s alignment with environmentalist and divestment firebrand Naomi Klein suggests they’d settle for nothing less than nationalizing oil companies. This week, I’m happy to report another group frequently called to task in this space, the Interfaith Center on Corporate Responsibility, opposes the AYS divestment onslaught. Reporting in last week’s Wall Street Journal, Gregory J. Millman writes:

An organization of faith-based and socially responsible investors is pushing back against the call for divestment from fossil fuel companies. At its Winter Conference Wednesday, the Interfaith Center for Corporate Responsibility, which claims 300 member organizations controlling $100 billion in invested capital, called instead for more shareholder engagement with such companies.

“Divestment is one step but a blunt instrument that leaves investors with no voice at corporate tables,” said Laura Berry, executive director of the ICCR.