The politics of family – and family business

This is a political editorial, and so you can take from it what you wish. But Williamson does cite some compelling data about the link between intact family structure and poverty (or its avoidance). Additionally, he draws the reader’s attention to income mobility, which is a much more accurate reflection of economic reality in the United States than income inequality, for reasons he notes in the piece.  In light of the huge role that family business plays in U.S. (and global) economics, I thought it was an interesting tie-in. After all, when family businesses are very successful, they do lift entire generations out of poverty and often into wealth. Whereupon those who advocate for estate taxes argue that it should be given back.  Again, interesting.

http://www.nationalreview.com/article/376231/politics-poverty-kevin-d-williamson

Michigan Law and Benefit Corporations

I love the idea of social enterprises and benefit corporations – businesses dedicated to generating financial as well as social returns.   This article provides a cool glimpse into a company and community close to ND.  It also highlights the legal landscape of benefit corporations.  It seems as though benefit corporations are the ideal – the perfect way to foster our capitalistic society while inculcating a sense of camaraderie and societal betterment.  It is refreshing to consider perspectives not wholly focused on shareholders and the bottom line.

http://www.forbes.com/sites/ashoka/2013/05/28/maternal-health-startup-makes-history-as-first-do-it-yourself-benefit-corporation-in-michigan/

 

Some recent info on the debate over state estate taxes

Governors Cuomo (NY) and Christie (NJ) are among those trying to stem the tide of wealthy citizens to more tax-friendly states like Florida.

Governors Cuomo (NY) and Christie (NJ) are among those trying to stem the tide of wealthy citizens to more tax-friendly states like Florida.

Estate planning affects a lot of successful family businesses. But depending upon the business, it may be difficult – if not impossible – to continue the business in the face of federal and/or state “death” taxes.  A significant number of states are now trying to attract people by lowering or even eliminating their estate taxes.  That leaves other states scrambling to catch up.

http://www.nytimes.com/2014/01/25/your-money/cold-facts-about-estate-taxes.html?partner=rss&emc=rss&_r=0