Competitiveness

Superpower Role Reversal And The Flat Tax Miracle

Russia Flat Tax Capitalism Freedomby Jeff Haden –
While the U.S. punishes millionaires, Russia and China reward them. In the upside-down era of Barack Obama, the capitalists act like communists and the communists act like capitalists.

Our multimillionaire president frowns on “millionaires and billionaires” and soaks them with higher taxes. But Russia loves them and even offers refugees of high-tax countries asylum.

Last week, the Kremlin, once headquarters of the Evil Empire, granted millionaire French actor Gerard Depardieu Russian citizenship so he can avail himself of Russia’s 13% flat tax and avoid his home country’s proposed new 75% supertax on millionaires. [Read more…]

California Faces Large Tax Increases with Propositions 30 and 38

California Tax Increases by Chris Banescu –
California taxpayers, already paying some of the highest income and sales tax rates in the country, will face even higher taxes this November. If California voters approve Propositions 30 and 38, the state Sales Tax rate will rise to 7.5% and the Income Tax rates paid by individuals and families at all income levels will rise significantly, with higher income taxpayers having to pay an astronomical 15.5% tax rate.

Proposition 38 will raise income tax rates for all Californians earning more than $7,316 per year. It will increase tax rates from 0.4% to 2.2% across all income levels above that limit. This represents a 17.5% to 20% increase in overall tax rates for low and middle income taxpayers and a 17.2% to 21.4% increase for higher income households.

Proposition 30 will raise income tax rates for all Californians earning more than $250,000 per year. It will progressively increase tax rates from 1% to 3% for all individuals and families earning above that level. Higher income households will see a 10.8% to 29.1% increase in overall tax rates. Prop 38 also raises the state sales tax rate to 7.5% from the current 7.25% for everyone. [Read more…]

Franchisors Warn Obamacare Will Halve Profits

Franchisors warn Obamacare will halve profitsby Paul Bedard
The International Franchise Association held a convention in Washington this week where most of the Radio Shack, Dunkin Donuts, Curves and other franchisers were grumbling about new federal regulations, especially the impact of Obamacare.

Most, said Atlanta Taco Bell and Kentucky Fried Chicken franchiser David Barr, presumed that the reports about how hard Obamacare will hit them were overblown. “They had their head in the sand,” he told Secrets.

That is until he pulled out his powerpoint showing how funding Obamacare will cut his –and likely their– profits in half overnight. [Read more…]

Seven Reasons Why Venture Capitalists Will Hate Your Idea

Entrepreneurship Venture Capitalists by Josh Linkner –
Having witnessed thousands of entrepreneurial pitches as a venture capitalist, I’ve seen the gamut from the good, the bad and the ugly. Of the pitches any VC sees, very few will actually receive funding; there are a lot of factors in that equation, so even for those companies that might be appealing, terms, location, market share, traction and other hurdles sometimes get in the way of signing a check.

However, you’ve got no shot at funding if your potential venture capitalist flat-out hates your idea. If your “next great” idea has any of the following characteristics, there’s a solid chance a VC isn’t going to dig it. [Read more…]

Why Most Ideas are Worthless

Most Ideas are Worthless By focusing less on your next “big idea” and more on the actual execution, you’ll have a better chance of building a successful new business.

by Karl Stark and Bill Stewart –
Maybe it’s the Facebook craze, or the warped view of entrepreneurialism that Hollywood and mainstream media have created. For ages, young and hopeful entrepreneurs have embraced the fallacy that great ideas are the root of entrepreneurial success and instant wealth. People say, “If only I would have thought of that, I’d be rich!”

Those of us who have built businesses know that success is rarely about the breakthrough idea. Clearly, a good idea is important, but it’s just not the source of limitless riches. Real entrepreneurial success most often comes from hard work, risk-taking, and developing a product or solution that creates real value for customers. [Read more…]

Simplifying the Tax Code

Simplifying the Tax Code Paying taxes can be tough — it’s complex, convoluted, time consuming, and often very frustrating. The US Tax Code has become a monstrosity that destroys competitiveness and productivity. It must be radically simplified!

In this video Randall Holcombe, Professor of Economics, explains how we can simplify the tax code by eliminating loopholes for special interests and lowering tax rates and how this helps improve economic growth and promotes wealth creation. [Read more…]

JetBlue Airways Chairman Joel Peterson: Innovation Is Hiding In Plain Sight

JetBlue Airways Innovation in Plain Sight by Lydia Dishman –
Sometimes innovation looks like good old-fashioned customer service served with a heaping helping of passion from a forward-thinking entrepreneur.

Sometimes innovation doesn’t look like a new social media channel, iPhone, app, or nifty widget. In fact, Joel Peterson believes that innovation is hiding in plain sight. Peterson tells Fast Company, “It’s any time you are doing something in a better way.” The way he sees it, innovation can be simply, “tweaks around the edges [of existing products and services], and a lot of people don’t get credit.”

Peterson sees it happen all the time. Most people don’t know he’s chairman of JetBlue Airways–and the discount airline’s first investor–or that he founded Peterson Partners, a Salt Lake City-based private equity group with some half a billion dollars under management, as well as Peterson Ventures which funds startups. [Read more…]