Category: Money

Do we really need a corporate minimum tax? | American Enterprise Institute

After the passage of the Tax Cuts and Jobs Act (TCJA), there have been a number of news articles reporting that some large multinational corporations had no federal tax liability even though they were profitable. Politically, it has allowed Democrats to claim that the TCJA has allowed companies to get away with paying little to no tax. As a result, The Washington Post reported that the Trump administration is thinking about proposing a new corporate minimum tax (the tax code had a corporate minimum tax until it was repealed as part of the TCJA).[1] According to the story, the minimum ... Read more

A Survival Guide for Startups in the Era of Tech Giants

Thomas Jackson/Getty Images Startups and established companies all face a dilemma when building new technology products.  If they hit upon something innovative that has high potential, they invite the scrutiny of large technology companies such as Amazon, Google, Facebook, and Microsoft. Big Tech has the money, technology, data, and talent to replicate and enhance any technological innovation that is not fully protected by patents — which encompasses most digital products. Recent episodes have shown this copycat behavior to be quite common and life-threatening to startups. The copying comes in various flavors. Sometimes tech giants simply copy innovative features. When Snapchat ... Read more

When bad ‘facts’ downplay a good economy, part 5: Are half of Americans unprepared for retirement? | American Enterprise Institute

Many of us get much of our news and information from social media. But much of that news and info is distorted or just plain wrong. Take this graphic I saw on Facebook. It’s the sort of thing a friend might share with you: It’s the sort of thing an activist or partisan would cook up. It has no interest in context or nuance or presenting a complete picture of economic trends. You are dumber and less informed for reading it. So here’s what I am going to do as a sort of case study. I am going to do ... Read more

3 Actions Congress Can Take to Reduce Drug Prices

Executive Summary To bring down the high prices of drugs in the United States, Congress should not just focus on regulating prices themselves; it should reform the whole system that governs competition and innovation. Specifically, it should link innovation-friendly policies to price concessions, revamp how long and how thoroughly new drugs enjoy monopoly protection, and remove obstacles to competition from generics. Jana Leon/Getty Images The high prices Americans pay for drugs has emerged as a major health policy concern. A majority of voters in both the Democratic and Republican parties want the government to take action to lower prices, and lawmakers in ... Read more

The rematch of the century

The weekend’s biggest sporting event is Wilder-Fury II, which despite its name is not an action movie sequel starring Jean-Claude Van Damme but, rather, a boxing match starring arguably the two best heavyweights in the world. The backdrop: In their first meeting in December 2018, Deontay Wilder and Tyson Fury put on a memorable show at Staples Center, with Fury surviving a brutal right hand in the 12th round to earn a split-decision draw. Key players: Wilder (42-0-1), a 34-year-old from Tuscaloosa, Ala., who has what ESPN’s Max Kellerman calls “the single most devastating knockout punch in the history of ... Read more

Are You Using Your Data, or Just Collecting It?

Executive Summary There’s a huge difference between understanding the importance of data and making it a priority in your organization. Every business needs experts responsible for analyzing pertinent data and helping inform employee decision-making. But many leaders aren’t taking full advantage of the analytical tools at their disposal and rely heavily on gut-instinct in situations where data provides a more complete picture. In situations without data or precedent, instinctive decision-making is likely the most viable option. But this strategy is unnecessarily risky in cases where the data shows the outcome of similar situations that have occurred in the past. Educating ... Read more

California’s “woman quota” law seems to be working

When California passed its boardroom law requiring public companies based there to have at least one female director, there were concerns it would spark a gold rush for the same handful of well-known women — but that hasn’t happened. Why it matters: Of the 138 women who joined all-male California boards last year, 62% are serving on their first company board, per a study by accounting firm KPMG. That means a majority of companies aren’t contributing to so-called overboarding in corporate America. The deadline to place a woman on an all-male board was Dec. 31, and KPMG has just tallied ... Read more

Early and absentee voting | American Enterprise Institute

Early and absentee voting is growing in popularity in both primaries and the general election. A poll conducted before the Nevada caucuses reported that more than half of all Nevada caucusgoers — 59 percent — planned to vote early. In Minnesota, early voting began January 17, even before the Iowa caucuses on February 3. Vermont began its early-voting period on January 18. Californians could begin voting early or mailing in their ballots on the day of the Iowa caucuses. In an AP News story, California’s Secretary of State reported that “more vote-by-mail ballots will be sent out in California than ... Read more

Philly Fed index boomed in January

The Philadelphia Fed’s manufacturing business outlook rose to near its highest level on record and notched its biggest reading above economists’ expectations in history. The big picture: Analysts at BMO Capital Markets note that the monthly reading is among the highest in history (in the 99th percentile) going back 30 years and marked the largest two-month jump since 1995. Why it matters: The survey’s results were taken in the immediate aftermath of the phase one U.S.-China trade deal, which bolstered expectations among many in the manufacturing industry. The Fed’s index is largely a gauge of sentiment, rather than hard numbers, ... Read more

Lessons from the Equifax hack | American Enterprise Institute

On February 10, the Department of Justice charged four members of China’s military with computer fraud, economic espionage, and wire fraud for the unprecedented Equifax hack in 2017. Using a vulnerability that the credit reporting agency failed to patch, the Chinese were able to obtain the personal information of 147.9 million US citizens (including names, addresses, birthdates, social security numbers, and mortgage and banking details), as well as valuable trade secrets. via REUTERS Recall that Equifax in July 2019 had agreed “to pay at least $1.4 billion to settle multidistrict litigation brought on behalf of 147 million U.S. consumers and ... Read more