regime uncertainty

More Compelling Evidence that America’s Corporate Tax System Is Pointlessly Destructive

"One solution is to engage in a lot of clever tax planning to minimize your taxable income. Though that’s probably not a successful long-term strategy since the Obama Administration is supporting a plan by European politicians to create further disadvantages for American-based companies. Another option is to somehow turn yourself into a foreign corporation. You won’t be surprised to learn that politicians have imposed punitive anti-expatriation laws to make that difficult, but the crowd in Washington hasn’t figured out how to stop cross-border mergers and acquisitions." Continue reading →

Continue ReadingMore Compelling Evidence that America’s Corporate Tax System Is Pointlessly Destructive

Every Important Person In Bitcoin Just Got Subpoenaed By New York

"Declaring Bitcoin 'a virtual Wild West for narcotraffickers and other criminals,' the New York State Department of Financial Services is stepping into the sheriff’s boots. 'We believe that – for a number of reasons – putting in place appropriate regulatory safeguards for virtual currencies will be beneficial to the long-term strength of the virtual currency industry,' said NYSDFS superintendent Benjamin Lawsky in a statement. They sent letters to the major Bitcoin players asking them to hand over information regarding their money laundering controls, consumer protection practices, source of funding, pitch books, and investment strategies." Continue reading →

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New York’s Crony Motivated Swipe Against the Sharing Economy

"Nigel Warren, an East Village resident, was fined $2,400 for running an illegal hotel because he rented his bedroom out to a visitor for three days. He wasn’t operating a sleazy flophouse, and the entire transaction was markedly casual, but he was prosecuted nonetheless. Warren’s offending transaction took place through Airbnb, an online hostelling website. Airbnb works on a peer-to-peer structure, connecting people with extra space to people who can’t (or don’t want to) shell out for a regular hotel. One can’t help but suspect big hotel powers might be lurking behind a law that forbids short stays anywhere but in hotels." Continue reading →

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Critics question IRS cash-reporting initiative targeting small businesses

"Small business owners across the country are receiving letters from the IRS questioning if they are reporting all of their cash income, in a new push by the agency some are saying could unnecessarily create fear in the small business community. The Wall Street Journal reports the initiative is an attempt to respond to what the agency feels is a widespread failure by small businesses to report all their cash sales. The agency says the letters are not the same as an audit, and it is simply seeking more tax information from the businesses. However, some lawmakers and business owners who received the letters say the initiative is alarming." Continue reading →

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Eccentric Beijing resident builds rock villa atop apartment skyscraper

"Neighbours have complained about China’s latest architectural oddity, which covers more than 1,000 square metres (10,000 square feet), saying they fear it could cause the structure to collapse on top of them, the Beijing Morning Post reported. Authorities have posted notices that the villa in the Haidian area in the west of the city is illegal, it added. Houses standing on top of multi-storey buildings are not unknown in China, where a rising property market is making land more and more expensive. A developer in central China built 25 luxury villas on top of a shopping mall, which became migrant workers’ residences after authorities declared them illegal." Continue reading →

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Doug French: So Where’s the Hyperinflation Already?

"The industry has shrunk to only about 7,000 institutions from 18,000 in 1985. The numbers won’t be growing as the FDIC is not issuing new bank charters. Proposed capital and regulatory requirements are forcing small to mid-sized banks to sell. Larger banks can’t grow organically so they are ready to buy. Lashley believes the industry will shrink further to 3,000 banks. While Lashley insists the industry is in much better shape than people think, a full five years after the financial crisis there are still 612 banks on the FDIC’s 'problem bank' list. None of this is bullish for increased lending." Continue reading →

Continue ReadingDoug French: So Where’s the Hyperinflation Already?

New York Banking Regulator Subpoenas Two Dozen Bitcoin Companies

"New York's top banking regulator has issued subpoenas to roughly two dozen companies associated with bitcoin as part of a wide-ranging inquiry into the business practices of the fledgling virtual-currency industry. The department also plans on Monday to issue a memo expressing concern that virtual-currency companies aren't complying with the state's money-transmission laws. As a result, the state is considering setting new guidelines that are specifically aimed at virtual currencies. Companies that received subpoenas include some of the best-known names in the nascent industry, including Coinbase Inc., BitInstant and Coinsetter." Continue reading →

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Small Businesses Are Trapped by ObamaCare

"Small businesses hoping to avoid the high costs of ObamaCare by switching to part-time employees got some unwelcome news last Thursday, as Paul Bedard at the Washington Examiner reported that the Small Business Administration launched a website to explain to employers that the federal government will add up the number of part-time staff employed to determine if enough hours have been worked to meet the 'full-time equivalent' criterion." Continue reading →

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Zimbabwe to Seize Mines While Compensating Banks

"The government and black Zimbabweans will take half of the value of assets it has identified in the economy, he said. The state empowerment fund has so far acquired about $1 billion in assets, he said. The government will open a new stock exchange to trade the black-owned stakes in the companies, he said. Trading at the Harare Stock Exchange may start within 100 days of the new government taking office and will only be open to black Zimbabweans, he said. Investments in Zimbabwe will be protected by the government as long as companies do not seek to exploit the country without its people benefiting, Kasukuwere said." Continue reading →

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How California Law Put a Hot Payments Innovator on Ice

"Three years ago Aaron Greenspan had a hot mobile payments startup on his hands that was poised to take a bite out of the entrenched card networks. Launched in April 2010, FaceCash signed up 25 Bay Area merchants and 500 consumers to use its novel technology, which combined mobile bar code scanning and photo identification. A Subway franchise in Palo Alto tested the service. Some suggested FaceCash could become the next blockbuster payments innovator after Jack Dorsey's Square. Then regulators put Greenspan out of business." Continue reading →

Continue ReadingHow California Law Put a Hot Payments Innovator on Ice