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Attitudes Towards Industry

September 15, 2014 Leave a comment

China is too busy building things to worry about legal issues, the US is too worried about legal issues to build anything.  Hence the largest transfer of wealth in the history of the world.

Categories: Uncategorized

Tax Simplification for Businesses

June 13, 2014 Leave a comment

There are numerous policy proposals that would contribute to a more simplified and efficient tax regime in the United States. While individual states and jurisdictions cherish their individual taxing authority, universal policies can be championed on a national level that would reduce the burden on taxpayers and more importantly the businesses that are the engines of the democracy.

 

a)      Sales Tax

  • There are 9,998 sales tax jurisdictions in US (over 5,000 in just 5 states: TX, MO, IA, AL, OK)
  • In 2011, there were more than 1,000 tax law and/or rate changes in these jurisdictions causing additional compliance and regulatory burden
  • There is a tremendous burden on businesses to track sales of goods and services, remit taxes appropriately, and face onerous penalties for inadvertent failure to comply; and differing tax bases and definitions further increasing complexity.

 

Adopting a uniform national sales tax partnership (I.e., one rate, one return administered by the federal government with most of revenues sent back to states to pay for schools, roads, etc.) between the federal government and the states is a win-win for all taxpayers by reducing complexity for businesses, increasing business compliance, increasing understanding and predictability for consumers, and equitable sharing of tax dollars across the nation. In addition, the costs of administration can be handled by a central authority (which should be more efficient) rather than burdening states with the costs of administering these taxes separately. If legislative negotiations are required, each state could provide a clearinghouse for these transactions under a uniform set of regulations.

Categories: Uncategorized Tags: , ,

Action Plan

September 18, 2012 1 comment

To reverse 37 years of trade deficits we need fundamental change in our policies to include:

  • Uniform commonality of how to implement tax policies between states setting up a common “best practices” protocol and call out any state that fails to support these protocols
  • Support an national sales tax or VAT tax
  • Reduction of restrictions, certifications and controls on business to allow them compete with less burden
  • Removal of annual property tax on business assets excluding the actual physical building.  Most people don’t realize companies have to pay taxes on the assets in the building annually
  • Restrict the number of federal college loans for degrees that are not in demand
  • Offer subsidies on degrees that promote the jobs in high demand
  • Provide green cards for foreigners with advanced degrees that take jobs in the US for a specified number of years
  • Open green cards for people wishing to immigrate, willing to pay for the vetting process, and able to pay a little bit more for the rights to be part of our system
  • Modify the legal system to promote loser pays
  • Validate all government identification systems are UID/GS1 compliant or replace ones that are not
  • Require that all government contractors own or operate a business that is 51% commercial/manufacturing
  • Re-think unemployment insurance – Don’t take money from companies with a strong payroll to give it to the government to fund unemployed.  Sponsor the opportunity for companies to hire people instead of just giving it to the government.  Just keep the money in the company as long as net income of any individual within that company doesn’t exceed $250k and average salary for the company in aggregate doesn’t exceed $75k.
  • Tie bonuses in food stamps aka SNAP to a lack of unexcused absences by the kids of the people who are getting the SNAP funds
  • Pass TERM LIMITS by creating visibility to each person involved in making a decision to see it pass.  Walk the bill through the required sub-committees. Make each candidate swear a pledge to uphold these term limits.
  • If the government is paying for your healthcare and you are not contributing you should not have significant legal recourse
Categories: Uncategorized

The formula needs to change

August 6, 2011 Leave a comment

America can only reverse manufacturing declines and subsequent 35 year contiguous trade deficits by fundamental changes in how we operate our government and the laws that burden business.  Things will continue to only get worse with a series of band aids applied by polarized leadership influenced by ever increasing special interest money.  To reverse the trend we need public financing, term limits and the desire of our executive leadership to not defer to congress to make the difficult choices.

Dealth by a thousand cuts

July 25, 2011 Leave a comment

As the states get more desperate for revenue they are find themselves going after companies with more diligence and ferocity.  Many companies not able to provide necessary documentation for taxes paid or permits submitted and subsequently are finding themselves paying stiff fees.  In many cases the companies in question are just settling with a state just to reduce the burden caused by the time involved in dealing with that issues.

Categories: Uncategorized

Actions to solve the trade deficit

July 24, 2011 1 comment

Once we have understood the frivolous constraints that restrict small and mid-sized businesses from being competitive, we must rank and rate each issue highlighting and quantifying its effect on business.  This must be done by interviewing real small business owners that operate businesses between $20 mil and $200 mil.  Going through the P&L will highlight areas of expense that are NOT directly related to the development, production and sale of the products or services.  Once identified and multifaceted action plan must take place to remove or reduce these constraints.

While we cannot burden imports with levees without causing a trade war.  We can assist our local businesses with federal assistance related to environmental remediation and energy subsidies relating to alternative energy.  For instance, if we can incentive local manufacturing by offering extreme subsidies for the use of solar power even to the point of building the solar array’s and providing the energy at a rate well below market rate for traditional energy, we will find American business coming home.  This has a two fold effect.  It makes manufacturing in the US more attractive by assisting with government subsidies on energy and it reduces our energy dependence on foreign sources of energy.

This is just one of a multi-pronged approach to trade balance.

 

Categories: Uncategorized

Who can we learn from?

July 24, 2011 Leave a comment

The leadership of our country has been content to learn about how American can compete from the smartest and most successful people in our society.  These people are titans of industry, new technology start-ups CEO’s, economists and professors.  However, for every Mark Zuckerberg and Jack Welch there are 1000 companies and the people behind them that are struggling to maintain profitability.  These are companies that may not own their markets or are sometime forced to compete internationally with little inherent competitive advantage and possibly constrained resources.

If American is to end the 35 year history of negative trade balance we must truly understand the burdens put on these businesses that result in decreased efficiencies.  There is no magic bullet to change the tide of trade we have chosen, but understanding the frivolous constraints that a business has to overcome on a day to day basis is the the first step in changing the tide of  negative trends that we are seeing from all angles.