Quotulatiousness

March 3, 2013

California’s retroactive tax grab

Filed under: Business, Government, USA — Tags: , — Nicholas @ 13:03

The state of California seems determined to drive out the remaining businesses that pay taxes. Here’s Wendy McElroy with news of a retroactive change to a small business tax break:

California cannot chase business away fast enough, it seems: high taxes, cap-and-trade, voracious unions, bankrupt cities, and now retroactive taxation.

Shortly before the Christmas holidays and oh so quietly, the California Franchise Tax Board (FTB) rescinded a tax break that dated back to 1993. The Qualified Small Business Stock (QSBS) exclusion allowed small businesses and investors who met certain conditions to exclude or to defer 50 percent of the profits of sold stock from their personal income taxes. The incentive was intended to lure startup companies of under $50 million into the state.

Now those who were ensnared have not only lost that tax break for the future; many are also being taxed retroactively back to 2008. Plus interest. Plus possible penalties.

Arms merchant’s golden customer: an Arab nation with oil money

Filed under: Britain, Business, Middle East, Military — Tags: , , , , , , — Nicholas @ 12:56

Strategy Page explains why some of the most lucrative customers for high-tech weaponry are Arab nations:

Britain has been quite successful selling their new Typhoon fighter to Middle East nations. Two years ago Saudi Arabia bought 72 Typhoons from Britain. That was followed by an order for 12 from Oman and now the UAE (United Arab Emirates) is negotiating the purchase of 60 of these expensive aircraft. This is big money, as the aircraft have a basic price of $65 million each and there are many ways to greatly increase that. For warplanes sold to Arab Gulf states there is an additional bonanza. The biggest additional cost is providing support services and personnel to keep the aircraft operational. The Typhoon manufacturer, BAE Systems, is energetically recruiting qualified maintenance personnel to keep these aircraft flying. This a much larger profit center for Arab customers than for anyone else. Few local Arabs will be recruited for this work and most of these technicians will come from the West. That is very expensive. Why can’t locals be found for these high paying jobs? The reason is simple; there are few Arabs qualified or even interested in such exacting work. This is a common problem in the Middle East.

For example, the unemployment rate in Saudi Arabia is 12 percent and many of those men are unemployed by choice. Not even counted [are] most women, who are barred from most jobs because they are women. Arab men tend to have a very high opinion of themselves, and most jobs available, even to poorly educated young men, do not satisfy. Thus most Saudis prefer a government job, where the work is easy, the pay is good, the title is flattering, and life is boring. Thus 90 percent of employed Saudis work for the government. In the non-government sector of the economy, 90 percent of the jobs are performed by foreigners. These foreigners comprise 27 percent of the Saudi population, mostly to staff all the non-government jobs and actually make the economy work. This means most young Saudi men have few challenges. One might say that many of them are desperate for some test of their worth, but a job in the competitive civilian economy does not do it, nor does the military.

The Saudi employment situation is not unique. The UAE (United Arab Emirates) has foreigners occupying 99 percent of the non-government jobs. The unemployment rate is 23 percent, but only a tenth of those are actually looking for a job. A survey indicated that most of the unemployed are idle by choice. Kuwait is more entrepreneurial, with only 80 percent of the non-government jobs taken by foreigners. The other Gulf Arab states (which have less oil) have a similar situation.

The brief lives of fireflies and NFL offensive co-ordinators

Filed under: Football — Tags: , — Nicholas @ 12:05

As a professional career, being an NFL assistant coach requires a lot of flexibility and the ever-present risk of job upheaval. Among NFL assistant coaches, the offensive co-ordinator is an especially short-tenured position:

When they talk about the average career of an NFL player being somewhere plus or minus three years, it comes as a shock to many casual NFL fans. To achieve that, for every Brett Favre, there have to be about 10 guys who only last one year. It’s not an easy way to make a living. It’s a hard reality to realize how brief so many NFL careers are.

At times, doing some background research can glean surprising results. Starting from the premise that Bill Musgrave’s offense is entering its third year, the thought of trying to compare the third seasons of other NFL offensive coordinators came to mind. Therein lay the problem.

Being an offensive coordinator isn’t an occupation anyone wants to have long-term in the same town. You rent. You don’t own.

It’s a job in which coordinators are happy to have at the moment, but it’s not one he actually wants to keep. With the combination of head coaches being fired, offensive coordinators being forcibly pushed onto their own sword by a head coach looking to save his own job for another year, or a coordinator being successful and landing a head coaching job, the attrition rate among OC’s is unsettling.

After just two years in the job, Bill Musgrave is tied for sixth-longest tenure among NFL offensive co-ordinators. That’s an incredible rate of job turnover.

Reason magazine’s Sequestration Sale

Filed under: Business, Humour, Media — Tags: — Nicholas @ 11:32

Reason Sequestration Sale

You actually need to click on the link to enjoy your 34-cent savings (let alone activate the hyperlinks), but you get the idea. Give it as a gift to your loved one or frenemy who thinks the sequester is a CIA-like Tea Party coup, or a homelessness generating machine, or merely a teacher-euthanasia experiment. There is only one political magazine like this, ladies and germs, for which we can all be thankful!

3D-printed gun parts

Filed under: Technology — Tags: , — Nicholas @ 11:19

3D printing is becoming much more interesting every day:

Cody Wilson, like many Texan gunsmiths, is fast-talkin’ and fast-shootin’—but unlike his predecessors in the Lone Star State, he’s got 3D printing technology to help him with his craft.

Wilson’s nonprofit organization, Defense Distributed, released a video this week showing a gun firing off over 600 rounds—illustrating what is likely to be the first wave of semi-automatic and automatic weapons produced by the additive manufacturing process.

Last year, his group famously demonstrated that it could use a 3D-printed “lower” for an AR-15 semi-automatic rifle—but the gun failed after six rounds. Now, after some re-tooling, Defense Distributed has shown that it has fixed the design flaws and a gun using its lower can seemingly fire for quite a while. (The AR-15 is the civilian version of the military M16 rifle.)

The lower, or “lower receiver” part of a firearm, is the crucial part that contains all of the gun’s operating parts, including the trigger group and the magazine port. (Under American law, the lower is what’s defined as the firearm itself.) The AR is designed to be modular, meaning it can receive different types of “uppers” (barrels) as well as different-sized magazines.

H/T to Marina Stover for the link.

Powered by WordPress