August 2011

U.S. Companies Pay More to Executives Than to Taxes

A new study by the Institute for Policy Studies finds CEOs making a higher income than their companies paid in taxes.

As lawmakers struggle to find common ground on jobs creation and fiscal responsibility, many have been pointing the finger at unfair tax treatment toward corporations. Others assert that as House Republicans direct corporate tax breaks at companies to facilitate hiring, little real hiring has actually happened. Mitt Romney famously declared, "Corporations are people, my friend," at the Iowa State Fair last month and touched off further controversy among the public and pundits as to how much preferential treatment corporations are truly receiving in the form of tax credits, offshore havens, deferments, and incentives. A new study released by the left-leaning Institute for Policy Studies shows that many companies are paying in executive compensation and lobbying, and less in taxes, at a time when the government struggles to come up with new revenues and the public is crying "foul" at corporate interests in Washington.

Hewlett Packard Flips Its Business Model, And It's Market Support

HP announced Thursday that it would abandon its hardware to concentrate on business software...and loses $12 billion in a single day.

In 2005, IBM withdrew from the PC business and forsook all investment in the IT hardware markets. It had sound footing in big business software service, and has made a successful run of it in that niche. Now, six years later and with a questionable acquisition, HP has made the same decision. Speculation on their chances of success are not encouraging. As a big fan of the HP from back in the day (when PC's were still fairly important) it's depressing to see the giant fall... but of course that's how business works and there's no arguing that the company has fallen well behind the 8 ball.

Who Or What Is Driving "The Ship"?

Why is it that we can't make headway, we can't recover, we can't create jobs, and every time we talk about it, it seems to get worse?

    

You hear about it from economists, pundits, politicians, and your Uncle Ted, "We've got to right the ship!" Well, everyone seems to have a different idea about how exactly to do that, why it's "wrong"
 (not right?) and what is preventing us from turning it all around. Well, new jobs numbers have come out for July and created a little optimism...but it didn't last long. This got me thinking; bankers don't seem to have a grasp on things (hello, 2008), economists can't agree, politicians are pretty worthless when it comes to economics, and as for Uncle Ted, well, anyway... I don't think anyone really knows what's happening, so we'll all listening to one another and making decisions accordingly. We're like a herd of blind buffalo trying to navigate the plains; hearing hoof beats in one direction we take off, only to find out we're plummeting over a cliff.