California vs. Delaware

Earlier this month, I travelled to Delaware for a family event.

Before the event, I had been trying to open a business bank account for an LLC I incorporated in Delaware several year ago. I intended the LLC to be a placeholder for any future business I might start.

I decided to open an LLC in Delaware because it has a business-friendly legal climate, and its annual business franchise fee of $250 was a fraction of California’s $800.

This year, I finally generated income from my business and decided to open a bank account in California to safeguard it.

Talk about being naive.

I registered my Delaware-headquartered business in California, which took two months. Just when I thought I was ready to open an account, I next had to apply for a California business license. The state estimated that the time to complete this process would be four months.

Four months!

Frustrated that my check would no longer be valid by the time California’s labyrinthine bureaucracy stamped my paperwork, I decided to see if I could simply open a business account in Delaware.

The catch: I needed a business license.

So I went online, filled out a form in less than 3 minutes, and the state of Delaware granted me a temporary business license online.

I opened a bank account in Delaware the following day.

It costs $85 and takes four months to get a business license in California. In Delaware, it costs $43.50 and takes three minutes.

In the end, it is California’s economy that suffers. A California credit union lost my business to a Delaware one solely because Delaware’s government ran a process that was over 57,000 times more efficient, but cost half as much.

Ridiculous.

Posted in Business, California, Finance and Economics, Mathematics, Policy, Politics, Taxes | Tagged , , , , | 7 Comments

Tax Incentives Work

Since the economic recovery began, business spending on employees has grown an anemic 2%, while equipment and software spending has expanded by 26%.

Part of this differential is due to the fact that equipment prices have dropped 2.4%, while labor costs have grown by 6.7%.

Given that few people are receiving raises these days, the primary culprit in rising labor costs is likely growing healthcare expenses.

However, another major driver of this sudden increase in capital expenditures is a tax break for bonus depreciation. This incentive allows companies to expense the full capital expenditure immediately rather than amortizing it over several years. The net effect of this policy is a tax reduction.

Given the uncertainty associated with hiring new employees, perhaps Congress should provide additional hiring incentives to help reduce unemployment.

Congress did pass a hiring tax credit last year, but many claimed it was neither well-designed nor well-publicized. One major contention is that the bill’s individual tax credit was not large enough, and the overall size of the program was too small.

Either way, Congress should try to replicate its success in encouraging capital investment via tax incentives by passing a similar tax incentive for hiring additional workers.

Posted in Business, Finance and Economics, Healthcare, Policy, Politics, Taxes | Tagged , , , | Leave a comment

Household Unions: You Move, We Sue

Imagine two scenarios. Continue reading

Posted in Business, California, Policy, Politics, Unions | Tagged , , , , , , | 20 Comments

Huntsman to Declare Candidacy Next Week

Jon Hunstman announced yesterday that within a week, he will formally declare his intention to run for president.

Speaking at an event in New York City to promote Henry Kissinger’s new book, On China, the future presidential candidate had remarkably lucid things to say about China. Continue reading

Posted in China, Defense, International Security, Media, Nuclear Power, Nuclear proliferation, Policy, Politics, Predictions, Terrorism, War | Tagged , , , , , | 7 Comments

Who Won the Republican Primary Debate?

Because I live on the West Coast and I work modern American hours, I missed the Republican Primary debate by about two hours.

I mean, who the heck other than government employees gets home from work before 5 pm?

So I wanted to pose a question to those who did have a chance to watch the debate:

Who won?

Please fill out the following poll to help a conservative out.

Posted in Business, Central Asia, China, Clean Energy, Clean Tech, Climate Change, Crime, Defense, Education, Energy Security, Finance and Economics, Food Security, General, Healthcare, International Security, Media, Middle East, Nuclear Power, Nuclear proliferation, Peak Oil, Policy, Politics, Predictions, Science, Social Security, Taxes, Terrorism, Unions, War | Tagged , , , , , , , | 8 Comments

Generate Unique and Interesting Content: Ten Lessons From Four Months of Blogging (Part X)

My previous nine posts focused primarily on how to drive traffic to your site. Once you have been blogging for several months and have built up a small following, the next step is to keep your readers coming back for more.

In my very limited experience, I have found there are several ways to accomplish this goal. Continue reading

Posted in Blogging, Business, Education, Mathematics, Media, Predictions, Thurston and Talbot, Writing | Tagged , , , , , , , , , , | 14 Comments

Thomas Friedman and the Liberal Apocalypse

Deep in the Bible Belt, folks know the comfort of the coming Apocalypse.  Most have enough sense not to try to predict its exact date, but just about everyone can appreciate its appeal.  The End of Days is an escapist/revenge fantasy in which all those fools who doubted us will weep amid a variety of sadistic torments, while we enjoy an everlasting snow day.

In this age of equality, why should liberals miss out on the apocalyptic fun?  Turns out there’s a long secular history of apocalyptic thinking, and it has produced policies just as toxic as anything dreamed up by fundamentalists.  Going all the way back to Thomas Malthus in the 18th Century, people have been warning that our prosperity will be our undoing, and that capitalism and growth will leave the world a scorched, lifeless heap.  They’re still wrong.

Now the normally rational Tom Friedman is ringing that bell in a New York Times piece.  He is embracing the work of doomsayer Paul Gilding, and announcing that “The Earth is Full.” Friedman and Gilding are a little late to this party. Environmentalist Paul Ehrlich predicted population doomsday almost half a century ago.

So how are those predictions turning out?

Human populations, which the Malthusians in every age predict will overwhelm us any day now, have not only failed to do so, but also they seem to be approaching a peak of around nine billion perhaps later this century.  One of China’s worst-looming problems amid a galaxy of looming problems is a potentially catastrophic population decline. Everywhere in the world where free markets and economic vitality have triumphed, population growth is slowing, and in some cases beginning to reverse.

The Malthusians have been consistently wrong for more than 200 years – a worse record than Harold Camping, but we just can’t stop ourselves from buying what the doomsayers of every persuasion are selling. The population/environmentally-driven end of the world narrative fills the same psychological void for the left that religious fundamentalists address with their ever-imminent Apocalypse. They even use similar language and imagery. There’s a perverse voice inside that us that craves The End, regardless of our religion or politics.  We’ll create that narrative out of whatever spare parts we have to work with.

Civilization always feels fragile and unnatural, doomed to collapse.  Yet, on it goes. Challenges like terrorism, global warming, and water scarcity come up, but solutions are always found somewhere between the panicked alarmists and the militant deniers.  It is innovation that makes us human, and it is innovation that keeps us alive.

We are some very clever monkeys.  It would be a mistake to bet against us.

Posted in Climate Change, Food Security, International Security, Media, Policy, Politics, Predictions, Terrorism | Tagged , , , , , , , | 4 Comments

Use Multiple Media to Engage Your Audience: Ten Lessons From Four Months of Blogging (Part IX)

Sometimes viewing nothing but text can get boring. Consequently, you should consider mixing it with other forms of media.

The last thing you want is a boring and static blog that readers avoid like cancer. Continue reading

Posted in Blogging, Business, Education, Mathematics, Media, Predictions, Thurston and Talbot, Writing | Tagged , , , , , , , , , , | Leave a comment

It Takes Time to Catch a Troll

If you are a fan of “ultradry Nordic humor“, you may find this mockumentary entertaining.

I particularly enjoyed the reference to Michael Moore in the trailer.

Posted in Humor, Media, Politics | Tagged , , , , , , | Leave a comment

Why the Right Needs a Dog in the Clean Energy Fight

The problem with the current energy debate is that on the one hand, the right’s solutions will keep the economy humming for the next twenty years after which there will be a massive energy crisis. Continue reading

Posted in Business, Clean Energy, Clean Tech, Climate Change, Energy Security, Finance and Economics, Media, Peak Oil, Policy | Tagged , , , , , , | 8 Comments