Showing posts from January 27, 2013

Capital has legs part 2

As I was saying the other day, capital flight is a reality. Technology only accelerates that reality:

Taxpayers Go Where Taxes Are Low: "Contiguous with the Empire State, Connecticut still is smarting over the relocation of hedge-fund manager Edward Lampert. With an estimated net worth of $3 billion, according to Forbes, Lampert was considered the fifth-wealthiest man in the Nutmeg State. In August 2011, Connecticut increased taxes by $875 million, retroactively to that January. It cut the maximum property-tax credit from $500 to $300 and lifted its top state income-tax rate from 6.5 percent to 6.7 percent. Then, on June 1, 2012, Lampert moved his company, ESL Investments, to Florida. Lampert also took with him the $10.6 billion that ESL reportedly controlled at that time.

“We are all aware that the changes to the tax structure in Connecticut last year have given many people pause as to whether this is the best place to do business and reside,” Greenwich first selectman Peter Tese…

News in brief

There was a 'Blast' at Iranian nuclear facility and the Israelis are responding with "Gosh, that's interesting. Wonder who coulda done it?" I'll leave it to you to connect those dots.

Why not a waiting period for laws? asks Instapundit.

’d like to propose a “waiting period” for legislation. No bill should be voted on without hearings, debate and a final text that’s available online for at least a week. (A month would be better. How many bills really couldn’t wait a month?)

And if the bill is advertised as addressing a “tragedy” or named after a dead child, this period should double.

Yes please. Add to it a committee of repeal who's sole function is to repeal old and outdated laws.

Yes, I know The Sun is something of a rag but this story has a point. Which way should we go as a nation? I'll note also that the spongers are natives and the woman with the work ethic is an immigrant.

Here's a post about why employment is dead in the water. ZeroHe…

It's almost as if capital has legs

One of the maxims I was continually hammered with when I was an undergrad was "Capital has legs". I understood the concept well enough but not the typical reasons behind it. In b-school they talk more about economies of scale, competitive advantage, capital formation, strategy vs. structure etc. As I remember it, we only talked about regulatory pressure and its effects in international business courses. That said, I've been beating my head against this particular wall with local liberals who have no concept that the businesses that have been lured here by the State are not here only for the Court of the Chancery and the well defined case law. Rather, Delaware allows the highest possible interest rates for lending as well as very good deals for corporations in terms of taxes and fees. Wall Street and it's attendant industries are the lifeblood of NYC. Without Wall Street and its employees to tax NYC is broke and I fear what would become of the place should they…

Clinton on the hotseat

Secretary Clinton was on the hotseat last week and I noted one part of the exchange in particular: Excerpts: Heated Exchanges at Benghazi Hearing - Washington Wire - WSJ: "SEC. CLINTON: Was it because of a protest, or was it because of guys out for a walk one night who decided they’d go kill some Americans? What difference, at this point, does it make? It is our job to figure out what happened and do everything we can to prevent it from ever happening again.

Now, honestly, I will do my best to answer your questions about this. But the fact is that people were trying in real time to get to the best information. The IC has a process, I understand, going with the other committees to explain how these talking points came out. But, you know, to be clear, it is, from my perspective, less important today looking backwards as to why these militants decided they did it than to find them and bring them to justice, and then maybe we’ll figure out what was going on in the meantime."