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

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

Absolutely nothing to do with entrepreneurship or innovation

… but as I was reading one of the articles from Forbes, I saw this piece criticizing Mayer Brown for taking a case — and I thought, “What the heck?”  So I posted it.

Are there cases that no self-respecting law firm should take? Is this one of them?

http://www.forbes.com/sites/eamonnfingleton/2014/04/13/disgusting-cry-some-legal-experts-is-this-the-lowest-a-prominent-u-s-law-firm-has-ever-stooped/

High taxes act like Prohibition

Crumpled Camel package

Interesting article about cigarette smuggling in Michigan. This started in the late 1990s, when the Michigan legislature decided to pass the second highest cigarette tax in the nation. (New York had the highest cigarette taxes at the time.)  Within months, people were starting to buy cigarettes in Toledo and other places across the border in Ohio and Indiana.  Party stores, gas stations and other Michigan vendors – particularly those close to the borders of other states – began complaining that they were losing revenues to stores in the other states. Whereupon the Michigan legislature passed yet another law, making it illegal to purchase more than X/cartons in other states. And then the smuggling started.

How can you enforce laws like that? You really can’t without random stops. And so that’s what the Michigan State Police started doing – randomly stopping vehicles crossing the Ohio and Indiana state lines into Michigan, and checking for what is now “contraband.”

http://www.michigancapitolconfidential.com/19725