Archive

Corporate Tax Competition

Tax and other incentive programs, primarily state and local, aimed at attracting new corporate investment have been around for a long time.  The primary motivation for states is usually related to jobs and for the corporation, lower costs.  A recent, major, proposed transaction involves efforts to induce Foxconn (a key Apple supplier) to build a new […]

Read More

Who Pays Corporate Taxes?

A recent article in The Wall Street Journal highlighted a debate between economists as to whether workers or investors bear the greater burden of U.S. corporate taxes. This is very interesting and manages to politicize corporate taxation.  If workers bear the greatest burden, a reduction in the corporate tax might attract Democratic votes.  On the […]

Read More

A Goldilocks Economy

According to Wikipedia, a Goldilocks economy is one that is not too hot or too cold, in other words, sustains moderate economic growth, and has low inflation, which allows market-friendly monetary policy. Where are we now? Economic growth, during the last several years, as the economy recovered from the severe decline during the “great recession”, […]

Read More

Hindsight

Periodically, someone points out that an investment of a small amount, say $10,000, in a major successful company such as Amazon, Microsoft, Berkshire Hathaway, etc., twenty or thirty years ago, would have provided an exceptional investment return.  Isn’t hindsight wonderful? The real question is how should you invest $10,000 now? Realistically, correctly identifying the next […]

Read More

Tulips and Bitcoins

Paul Vigna, in a recent Wall Street Journal article, pointed out that “digital currency fans are partying like its 1999.” Perhaps Mr. Vigna may want to look further back than 1999, to 1637.  That is when, according to Wikipedia, during a period in the Dutch Golden Age, the contract prices for a single tulip bulb […]

Read More

Investing is Not a Snap

Successfully managing a company and attracting investors is not easy.  But thumbing your nose at prospective investors, by issuing shares with no shareholder rights, and then refusing to provide any guidance respecting management’s operating expectations, may not be the best approach. Under these circumstances it shouldn’t come as a big surprise if investors conclude that […]

Read More