Tuesday, June 18, 2013

The G8 nations and small businesses have something in common


The split in business opinion (see story below) on whether the economic world powers represented at the G8 summit should crack down on offshore tax havens that deprive nations of corporate tax revenue is easily understood. 
Organizations like the U.S. Chamber of Commerce, which represents multinational corporations, want to protect their big dues paying members from paying their fair share of taxes.  Organizations representing small businesses, like the American Sustainable Business Council, want to protect their members from subsidizing the government services multinational corporations receive from the countries where they avoid paying taxes. 

Multinational corporations are the “takers” and we are the “givers”.  And we’re tired of getting screwed.  Apparently so are the G8 nations based on their declaration this morning on combatting tax avoidance.
(In the interest of full disclosure, I serve as chairman of the American Sustainable Business Council Action Fund.)
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The Wall Street Journal
June 18, 2013

The Morning Risk Report: Companies Divided on Taxation as G8 Zeroes In


The business community is making noise about one of the top agenda items at this week's G8 summit, corporate taxes, but the conversation sounds more like a shouting match than a chorus.

By Christopher M. Matthews

The business community is making noise about one of the top agenda items at this week’s G8 summit, corporate taxes, but the conversation sounds more like a shouting match than a chorus. Dueling letters sent to the White House this month about corporate taxation, and more specifically, cracking down on tax havens, seem to indicate that many companies don’t see eye-to-eye on the issue.

British Prime Minister David Cameron, who’s hosting the leaders of the Group of Eight industrialized nations, has said corporate taxes are a top priority. The issue is one that President Obama, who hopes to reform the tax code, can get behind. “Tax avoidance is as much about countries and country rules as it is about companies, because the loopholes that the companies use are the results of the rules that countries set,” White House international-economic-policy coordinator Carolyn Atkinson, told reporters before leaving for Europe. Obama hopes to translate international support into political capital back home.

He’ll need it, because back in the U.S., there is little consensus on the issue, even among the corporate community that arguably stands to lose the most. In a letter to the White House earlier this month the U.S. Chamber of Commerce, the Business Roundtable, and others expressed concern about aggressive efforts to crack down on corporate tax evasion. “Recent tax initiatives in a number of foreign countries, including several of our G8 partners, appear to be primarily targeting American companies with global operations in the guise of combating tax avoidance, potentially harming both the U.S. companies’ competitive position and the U.S. Treasury,” they wrote in the letter.

Meanwhile, the American Sustainable Business Council, which represents 165,000 businesses, and non-profit group Avaaz sent competing letters to the White House. Avaaz said its letter was signed by 15,000 business owners. “Tax dodging deprives our nation of revenue needed to maintain and modernize the infrastructure and services underpinning a strong economy,” ASBC Executive Director David Levine wrote in the letter. The council also released a poll that found that 85% of small business owners oppose a territorial tax system, which the Chamber advocates and which critics say allows U.S. companies to shield overseas profits from domestic taxation. At least one major U.S. company has put its name on the issue, as Google’s Eric Schmidt said he welcomed the taxation debate (if not exactly advocating a specific change.)

http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-255673/ 


 

Sunday, June 16, 2013

Remembering Palin's "death panels"

Remember “death panels”?

It was a Sarah Palin creation based on the provision originally in the healthcare reform legislation that became Obamacare.  She successfully morphed the intent to pay physicians for end of life counseling into a government program to decide which seriously ill people would be treated and which would be deemed unworthy and have medical treatment withheld.
 
Because of all the uproar Palin created, Congress struck the end of life counseling from the bill.  But Palin wasn’t satisfied and has pointed to the law’s Independent Payment Advisory Board as the “death panel”.  The IPAB will eventually make recommendations to the White House and Congress on ways to control Medicare costs. 

Palin calls these future recommendations, which might be developed after 2018, the “subjective rationing of care”.  In other words—“death panels”. 
 
But helping to fuel Palin’s calculated public paranoia was another part of Obamacare calling for comparative effectiveness research to give us better healthcare while controlling costs.  The law even set up the Patient-Centered Outcomes Research Institute to focus the effort to conduct the needed research to determine the effectiveness of medical options and provide this information to healthcare provides.

The story in the Contra Costa Times (below) explains why comparative effectiveness research is important not only for controlling healthcare costs but for better medical treatment.  Critics also have expressed concern that this research will lead to rationing. 
But the Kaiser Permanente has used comparative effectiveness research for decades for cost control and better health of its over 8 million health plan members across 9 states and the District of Columbia.

No one apparently has charged Kaiser Permanente with using “death panels” but that’s probably because it doesn’t provide services in Alaska.
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Contra Costa Times
June 10, 2013

Kaiser research method has potential to transform U.S. health care system


It was a nuisance and David Gassman put it off for three weeks, but he finally put a little stool sample into a tube and mailed it to a Kaiser Permanente lab.
It's a good thing he did. The test indicated he had colon cancer.

The 68-year-old Oakland resident, who is recovering from surgery, can thank an emerging field known as "comparative effectiveness research." It's an idea that sounds so obvious it's hard to believe it isn't already routine: Rather than simply analyzing whether a drug or treatment method works, researchers compare options to determine which ones do the best job for patients.
Many experts say the approach has such potential to transform the U.S. health system that the federal government will spend $3.5 billion on it through 2019 under national health reforms.

After Kaiser's comparative research revealed that a low-cost, mail-in stool test is more effective than previous stool tests, the health system began offering it widely to patients in the mid-2000s, aware that many would find it more appealing than an intrusive colonoscopy.
Kaiser screening rates jumped from less than 45 percent to nearly 85 percent, potentially saving hundreds of lives.

Critics have complained that comparative effectiveness research could lead to health care rationing. But the Kaiser Permanente Division of Research in Oakland with 550 employees has been doing it for decades to improve patient care and is considered a national leader in the field.
Why is it needed?

Drug companies spend millions of dollars testing their next blockbuster drug, and the federal government devotes large sums to studying diseases, but little is spent on research to help doctors and patients answer such crucial questions as:
·  Does a costly new drug work better than the cheaper medication that has been around for decades?

·  Should I spend thousands on a painful back surgery or would physical therapy work just as well?

·  What offers the best results for treating a sleep disorder?

"Patients and clinicians often are forced to make decisions without good evidence," said Dr. Joe Selby, executive director of the Patient-Centered Outcomes Research Institute, an independent nonprofit that Congress set up to oversee the program.
The United States has had major gaps in comparative effectiveness research, said Dr. Tracy Lieu, who directs Kaiser's Northern California research division. "Drug companies are not particularly eager to fund studies that might find that their drugs should be used on fewer patients," she said.

Although Gassman had never heard of such research, it may have saved his life. He had a sigmoidoscopy several years ago and he says it could have been several more years before his doctor recommended a colonoscopy. The mail-in stool test, which Kaiser sends out annually to its 50- to 75-year-old members, enabled doctors to catch his colon cancer early.
If the test finds blood in the stool, a sign of cancer, the results are confirmed with a colonoscopy. Gassman had surgery in May and now jokes that he has a semicolon.

"We have to continue monitoring the situation to be sure it doesn't return, but supposedly we got it all," he said.
 
Kaiser has changed its colon cancer screening policies over the years as a result of comparative effectiveness research. In 1993, when many patients weren't being screened, Kaiser invested millions of dollars to offer sigmoidoscopies, which are similar to but less invasive than a colonoscopy, after finding that it could save lives. The study was headed by Selby, who was director of Kaiser's Oakland research division before he was tapped to head the national institute.

But in part because many patients find sigmoidoscopies uncomfortable, Kaiser could never get its screening rates above 45 percent.
 
A later Kaiser study found a new version of a stool test identified more cancers and polyps and had fewer false positives than older stool tests, said Dr. James Allison, an emeritus investigator in Kaiser's research division. Screening rates soared when Kaiser made the mail-in stool tests widely available in the mid-2000s. Today, Kaiser urges its members to take a yearly stool test, or a colonoscopy every 10 years, or a sigmoidoscopy every five.

The screening has had results: Kaiser found 331 cancers among the 340,000 stool tests it analyzed for its Northern California members in 2011.
 
In one of its latest projects, Kaiser teamed with UC San Francisco to look at the best way to control high blood pressure in African-Americans, who have much higher rates of the condition than whites.

They will examine whether giving African-Americans a higher dose of diuretics or telephone sessions with a health coach can be effective, said Dr. Stephen Sidney, director of Kaiser's stroke prevention research program.
 
These are the kinds of effectiveness questions that will be pursued with the federal research money at institutions around the country. Congress allocated $1.1 billion for comparative effectiveness research in 2010 in the federal stimulus bill and set aside $3.5 billion more in the Affordable Care Act.

Critics said they fear such research could lead to health care rationing if the government uses the results to ax effective treatments simply because they cost too much.
To address such criticisms, legislation discouraged the new institute from doing cost comparisons.

That has erased many of the concerns initially raised by groups such as the Partnership to Improve Patient Care, a private organization formed in 2008 that includes representatives of drug manufacturers, device-makers and patient groups. Now the group's chairman, former Rep. Tony Coelho, a Democrat who represented the San Joaquin Valley area, said he wants to make sure that patients are involved in the new institute's decision-making and that doctors and patients can understand the research findings.
 
The new institute has patients on its advisory committees and people can suggest research questions on its website, Selby said.

To avoid having its findings sit on a shelf, he said, the institute will work to see "that decision-making actually changes and health status improves."

Thursday, June 13, 2013

President Obama--Close down tax havens

American Sustainable Business Council
1401 New York Ave., N.W. Suite 1225, Washington, DC  20005

June 7, 2013


President Barack Obama
The White House
1600 Pennsylvania Ave. NW
Washington, DC 20005

Dear Mr. President:

As business leaders, we are writing to urge you to support the efforts of Prime Minister David Cameron and other world leaders to develop shared strategies for ending offshore tax abuse and addressing corporate tax avoidance through aggressive profit shifting when you represent the United States at the upcoming G8 meetings.

When companies play one country’s tax laws against another, and have developed a system in which their international subsidiaries hold billions of dollars of profits untaxed in any nation, this is a problem for all nations. It is also a problem for our country’s small and mid-size businesses.

America’s businesses, especially small and medium sized companies, understand that the current corporate tax system is badly broken. It provides powerful incentives to shift investment and jobs offshore. The biggest crisis small business owners face is the lack of spending power in this country. It is easy to make the connection that unemployed and underemployed people can’t be our customers, and their lost income can’t circulate and enliven the economies of our communities.

American small businesses are angry that they are subsidizing large multinational corporations who have lobbied for, won and use tax loopholes that in many cases allow them to avoid paying any federal income taxes despite reporting billions of dollars of profits to shareholders. These very same companies are now using their political clout to argue for failed policies like a territorial tax system that would only accelerate current problems.

America needs one corporate tax system -- one that is fair for all businesses, large and small.
These views are shared not only by the businesses we represent, but small business owners regardless of affiliation or party. Last year, ASBC, together with other business organizations, commissioned a nationwide, scientific poll of small business owners. Ninety-one percent of the business owners surveyed said it was a problem when multinational corporations used accounting loopholes to shift their U.S. profits to offshore subsidiaries to avoid paying taxes. Republicans outnumbered Democrats in the poll. Offshore tax abuse is not a Democratic issue or a Republican issue, it is an American issue. We agree with Prime Minister Cameron that it is a global issue as well.

This year, ASBC jointly commissioned another poll of independent small business owners, this time on specific pending tax proposals. Eighty-five percent of small business owners said they opposed a shift to a territorial tax system for corporations (including two-thirds of Republican small business owners polled). More than three-quarters of small business owners polled support replacing the current corporate tax system with a system based on formulary apportionment, and almost two-thirds support ending deferral and taxing the global profits of multinational firms with full offset for foreign taxes paid, as a means of addressing the inequities of the current system.

The American Sustainable Business Council and its members represent 165,000 small and medium sized businesses in all 50 states. These and many other businesses face many unmet needs in running their businesses. They suffer from our deteriorating infrastructure, which causes shipping delays and the need to carry extra inventory. They worry about water main breaks or power system failures that would cause them to close their doors while repairs are made. And too many struggle with access to capital needed to fund their on-going businesses and support expansion opportunities.
As concerned business leaders, we hope we can count on you to support efforts to close down the world’s tax havens at the upcoming G-8 meeting and to insure that in this country we work toward revenue-positive corporate tax reform that demands that all businesses pay their fair share so that we have adequate revenue to invest in America’s infrastructure, schools and small businesses, allowing all of our businesses to thrive and to be competitive in the 21st century global economy.

Sincerely,

David Levine, CEO
American Sustainable Business Council
Connie Evans, President and CEO Association of Enterprise Opportunity
 
Frank Knapp, CEO South Carolina Small Business Chamber
Holly Sklar, Executive Director Business for Shared Prosperity
 
Ajax Greene, Executive Director Re>Think Local (NY)
Michael Kramer, Executive Director Sustainability Association of Hawaii
 
Paul Tarnoff, Executive Director Iowa Sustainable Business Alliance
Mark McLeod, Executive Director
Sustainable Business Alliance (CA)
 
Michael Lapham, Executive Director Responsible Wealth
Todd Larsen, Division Director Green America

Wednesday, June 12, 2013

Crafting The Perfect Pitch





Your pitch is the single most important element of your startup. We're teaming up with EngenuitySC and the Incubator for a Start! Workshop to craft a winning pitch. Registration costs $25 and includes lunch.

You’ll see winning pitches, you'll get one-on-one help crafting your pitch, you'll walk away with an investor-ready slide deck, and you'll practice in front of a live audience of your peers.

Philippe Herndon, founder and chief designer of Caroline Guitar, brought an audience of 500 to its feet at Ignite! 2011. At the workshop, you'll hear Philippe's winning pitch and he'll serve as a guest mentor. Thanks to EngenuitySC for letting us use Philippe's photo.

Will Bryan of Genesis Studios will teach you how to make a visually stunning slide deck. Will won Ignite! in 2012 presenting Public Works of HeART, a startup focusing on using public art to beautify communities and improve lives.
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Wednesday, June 5, 2013

Irish seeing red from missed green

When it was reported recently that Apple has avoided paying U.S. corporate income taxes on tens of billions of dollars by claiming the money really belonged to its Irish subsidiary, the hope was that Congress would use the revelation to seriously look at closing these tax loopholes used by multinational corporations. 

But, of course, our Congress is pathetically impotent to deal with the real problems of the country.  It’s too busy playing politics ALL THE TIME.  Plus, Apple is an influential company and it isn’t doing anything that other influential multinational corporations aren’t doing.
So instead of our Congress addressing this tax issue we might just have to rely on Ireland to fix the problem because Apple hardly paid any tax to that country on all those billions.  Why?  Because Irish tax law says that to be taxable income the corporate decisions have to be made in Ireland, which, of course, they aren’t in Apples’ case. 

The Ireland Independent exposed Apples’ tax avoidance in that county with a story yesterday under the heading, “Biggest Irish companies paid tax at eight times Apple's rate”. 

And if Apple ticking off the Irish business community isn’t bad enough, the President of the Irish Catholic Bishops’ Conference, Archbishop Sean Cardinal Brady, signed a letter to the leaders of the G8 countries this week addressing tax evasion and taxation.  The letter cited the Catechism of the Catholic Church: 
“Submission to authority and co-responsibility for the common good make it morally obligatory to pay taxes…” (No. 2240).

Now if we can only get the leprechauns to rise up against Apple, we can shut down at least this one offshore tax haven.


 

Friday, May 31, 2013

Micro-Business resources and financing

If you are a micro-business (5 or fewer employees) and you need some training, technical assistance or financing, you need to be at the South Carolina Micro-Business Conference
June 11, 2013  -  9:00am to 4:00pm – at the Columbia Conference Center  in Columbia.

If your organization provides these same services and resources to micro-businesses, you definitely need to be at this June 11th conference.
 

This conference is designed to foster collaborative statewide efforts that:  1) Increases entrepreneurs’ access to resources  2) Empower micro-enterprise service providers & 3) Promotes South Carolina’s economic growth

Micro-businesses and providers of services will have an opportunity to network, learn, collaborate. 

The keynote speaker will be Connie Evans, President and CEO of the Association for Enterprise Opportunity (AEO), the national nonprofit organization and business trade association representing the U.S. micro-business development industry.

This is Ms. Evans second visit to Columbia to promote economic development through micro-business development. 

Conference includes continental breakfast & luncheon.