I was greeted this morning by one of the most welcome stories I’ve read in some time. US President Barack Obama has signaled his intent to close some infamous gaps in our byzantine tax code. Specifically, loopholes that allow US corporate entities as well as individuals to evade their fair share of taxes.
In my opinion this is a good move for the US in general, as one goal is to remove incentives for US-based companies to create jobs overseas rather than onshore. I’m not against multinationals per se, but on the other hand the extreme loss of our manufacturing base has troubled me for some time.
Maybe it’s just me, but lately I’m noticing a greater swaggering amongst the US mainstream left-of-center media. Some of it can be of course attributed to the euphoria of Barack Obama’s election, but I think for the most part it is collective relief after eight years of news oppression.
This is where the diehard fans of former President George W. Bush begin protesting, but the facts are indisputable. The chill over the news outlets was obvious from the start; the massive protest and subsequent abuse of protesters during Bush’s 2001 presidential inauguration was largely ignored by the mainstream media. To this day one has to veer off the beaten path to find any details. Wikipedia glosses over the incident… but findings of Washington DC police spying on activists show that the subject is certainly deserved of more attention.
President Obama set a high bar for himself with promises of integrity and transparency in his administration. That didn’t stop him from bumping up against his own goals, though; in addition to sidestepping his own administrative guidelines on hiring former lobbyists, we are now up to three major misfires on the subject of unpaid taxes.
First, Timothy Geithner. Next, Tom Daschle. More recently, Nancy Killefer.
Treasury nominee Geithner has so far survived a minor bruising over his ironic tax issues. Daschle appears to be honestly apologetic over his own but that isn’t stopping the New York Times from calling for him to withdraw… even as Businessweek more-or-less defends him (update: Daschle pulled out soon after I wrote this). Killefer had the decency to bail soon after her skeletons fell out of the closet. That just makes the president’s earlier statement announcing her selection all the more interesting:
“We can no longer afford to sustain the old ways when we know there are new and more efficient ways of getting the job done,” the president said in announcing [Killefer’s] nomination.
Posted in The Write Stuff, Unusability
Tagged cabinet, Daschle, ethics, Geithner, Killefer, LinkedIn, nominations, Obama, selection, taxes, vetting
Some days ago I wrote on a revival in entrepreneurship in the US largely initiated by massive job losses and corporate failures. In the article I briefly mentioned Retirement to Franchise Transfer Plans, a means of using one’s 401K retirement to purchase stock in a franchise. This is in essence a stock transfer, and no penalties are incurred. Oddly, my Google search on that phrase only turned up 5 distinct hits! That leads me to assume the option may not be exercised by many.
Maybe that last detail has to do with low awareness, or perhaps many cannot realistically employ it. This alternative funding vehicle may work well for those with monster 401Ks, and a desire to fund their own business, but it is useless for someone like myself with a tiny (and shrinking) tax-deferred investment along with no access to other working capital.
So I’d like to propose something blasphemous to our current national leadership: create a temporary moratorium on 401K and/or IRA early withdrawal penalties and taxes (note: see update below for an embarrassing admission). Continue reading
Posted in Inviting Change, Out There, The Write Stuff
Tagged 401K, congress, economy, franchise, LinkedIn, moratorium, Obama, retirement, tax
Those who know me are already aware that my global position at Nokia was eliminated, and I am looking for my next employment opportunity.
I’m certainly not alone, as I mentioned in an article on open source software a few days ago. People are being laid off in frightening numbers, even by companies that are doing relatively well (like Hewlett Packard, which is also freezing salaries after buying EDS) in this economic mess. I believe most of the cuts to be an overreaction that will eventually backfire. Read on.
That article also briefly mentioned US president-elect Barack Obama’s proposal to focus inward and create long overdue public works programs. An official analysis shows how needed such efforts are, describing a potential of 1.8 million jobs (a bit less than the 2.5 million Obama has cited).
Jobs creation gives me hope, and I’m daring to wonder if there’s opportunity for my skills in there. But what I’m really curious about is what such programs will do to the private sector.
There’s already evidence that, in many cases, companies are better off keeping their strategic talent through turbulent times and thus being prepared when the inevitable upswing arrives. Instead, many are now engaging in a wholesale human dump. If enough of those unemployed people are then sucked up by a federal civil works program, a shortage for the commercial sector may develop (in at least some areas) that in turn increases wages as companies later aggressively compete to lure castoff talent back. Which of course drives up inflation. Which leads me to suspect that any economic recovery may be ironically dampened and/or delayed a bit as the folly of mass layoffs boomerangs.
Time will tell.
No, that’s not a plea for an increase in movie or video game violence (sorry fans).
Instead, it’s a question around Al Gore’s future. Yesterday I offhandedly told my wife that it would be interesting to see the former Vice President and recent Nobel prizewinner selected as EPA head. That turned out to be amazingly prescient, because now CNN reports that Gore is meeting with Obama, and at this point that can only mean one thing: a job.
However, perhaps a cabinet slot such as Energy Secretary makes more sense, given Gore’s post White House projects.
Regardless, a Gore appointment somewhere would only add further intrigue to what is already shaping up as one of the most interesting White House assemblies since the Reagan years. Stay tuned!