Invest in Ireland ahead of the Biden-Harris Presidency?

by philg

A signature campaign promise of the Biden-Harris campaign is to raise the U.S. federal corporate tax rate to 28 percent or 31 percent on corporations that “offshore manufacturing and service jobs to foreign nations in order to sell goods or provide services back to the American market.” (Tax Foundation) When we add in state corporate tax rates, the typical U.S. company might be hit with roughly 36 percent in taxes. Compare this to 12.5 percent in Ireland or 19 percent for a London-based company.

The Trump tax law changes of late 2017 took a lot of the wind out of the Irish inversion sails. If high corporate tax rates are restored by President Harris, though, it will again make the best economic sense for corporations to be headquartered in Ireland, the UK, or other comparatively low-tax location. Ireland has the lowest rate in the EU and everyone there speaks English (sort of). Can investors profit from a Biden-Harris election win, therefore, by buying Irish assets? Since U.S. law discourages sham inversions, the actual senior management jobs should migrate to Ireland. This should help Irish real estate, banks, insurance, etc. Under a Biden-Harris administration, an enterprise with management in Ireland and an operating subsidiary in the U.S. should have higher net profits than one in which everything is in the U.S.

Separately, how is Ireland doing with coronaplague? After more than seven months of shutdown, they’ve now entered “Level 5” double secret shutdown. Note that essentially everything is closed except for schools. Primary schools are unmasked. Once students enter secondary school they must don the hijab of the Church of Shutdown. Universities are open. Adult education is open, which includes flight schools (yay!). I was discussing this on WhatsApp with an Irish friend and I said “This is the mirror image of Massachusetts. Here almost everything is open except for the schools. And when we had almost everything closed, it was the marijuana and liquor stores that were deemed essential and kept open. Maybe this is all that we need to know to understand the difference between Irish and Massachusetts values.”

The WHO dashboard shows that Ireland, in its island redoubt, has suffered a little more than half the COVID-19 death rate compared to the U.S. or the U.K.

Ireland was already ahead of the U.S. in PISA scores (2018 snapshot). With the U.S. in the midst of what might be a multi-year education shutdown while Irish schools and universities are operating more or less normally (see Trinity College Dublin’s plan), is that another good reason to shift investment to Ireland?

What the Irish might call a sunny day, May 2019, on the Giant’s Causeway (taxed by the U.K., which is a great thing if you’re an entrepreneur!)

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COVID-19 survivors speak

by philg

Kellyanne Conway and Melania Trump, both recent victims of COVID-19, managed to recover sufficient lung capacity to speak in Pennsylvania recently. The video is on PBS and a transcript on Rev.

I had never seen a video of Melania Trump before and it was interesting to hear her perspective. Some excerpts:

For the first time in history, the citizens of this country get to hear directly and instantly from their president every single day through social media. I do not always agree with the way he says things but it is important to him that he speaks directly to the people he serves.

The Democrats have chosen to put their own agendas ahead of the American people’s wellbeing. Instead, they attempt to create a divide, a divide on something that should be nonpartisan and non-controversial.

While the President was taking decisive action to keep the American people safe, the Democrats were wasting American taxpayer dollars in a sham impeachment. They cared more about removing our elected president.

Joe Biden attacked President Trump’s decision to put the American people first and closing travel from China. He called it xenophobic hysteria. Now he suggest that he could have done a better job. The American people can look at Joe Biden’s 36 years in Congress and eight years in the Vice Presidency and determine whether they think he will finally be able to get something done for the American people.

Before my husband decided to run for President, the media loved him because they saw the man that I see every day. Someone tough, successful, and fair. … A man who sees potential in everyone he meets, no matter their gender, race, religion, or sexual orientation. … But when he decided to run for the President as a Republican, the media created a different picture of my husband, one I don’t recognize, and treated all his supporters with equal disdain. The media has chosen to focus on stories of idle gossip and palace intrigue by editorializing real events and policies with their own bias and agendas.

Apparently Melania has been paying close attention to events in Washington and beyond. She espouses a traditional (for American politicians) message of prosperity and security:

This election isn’t just about the next year. It’s about the next four years and beyond. It’s about continuing to set this country on a course of real prosperity and success. We can’t and we shouldn’t go backwards. Donald Trump is the man who will lead us and empower us to make that greater future together. Donald Trump will expand and grow the economy and keep us safe.

Joe Biden’s policy and socialist agenda will only serve to destroy America and all that has been built in the past four years. We must keep Donald in the White House so he can finish what he started and our country can continue to flourish.

And she’s kind of humble:

Thank you for taking time out of your day to be here with me.

Readers: Could Melania win a Senate race in her new home of Florida, for example? Rick Scott is 67, which is 20 years younger than Dianne Feinstein. On the other hand, maybe Scott would rather do something else in what would traditionally be considered his Golden Years.

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What jobs could Biden and Trump do if they fail to win?

by philg

Within a few days we will know whether Biden (78 later this month) or Trump (74) will be available to work in the private sector starting in January.

According to the American voters, whose wisdom can never be doubted(!), these two are the most able administrators in our land. So… what would Trump do if he lost? Go back to chairmanship of his real estate empire? Phil Ruffin is still actively managing his real estate empire at age 85 (and was vigorous enough at 72 to marry Oleksandra Nikolayenko, Miss Ukraine 2004).

How about Biden? Leaving aside lobbying and other jobs that are dependent on connections (not to say “corruption”!), who would want him to start work at their enterprise at age 78? What would Biden be able to do?

How about Hillary Clinton? In November 2016, more than 65 million Americans believed her to be the most able administrator in the land. What has Hillary done since then?

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Sean Connery as an inspiration for American suburban life

by philg

From one of our Facebook friends:

RIP, Sir Sean Connery. Your impact on my childhood and becoming a man cannot be understated. Thank you.

This led to a mystified chat discussion. The guy who posted this has been married for 25 years, works at a desk job, never does anything without first asking his wife for permission, never expresses an opinion that he and/or his wife think might upset the town’s cabal of stay-at-home moms, and is an apparent slave to his high school-age daughters. What was the connection between James Bond and the suburban soccer dad? How had Danny Dravot’s attempts to take over Afghanistan in The Man Who Would Be King inspired his trips to Costco?

Also, if Joe Biden delivers on his promise to shut down the United States, do we start calling Anthony Fauci “Dr. No”?

Related:

  • Wikipedia reveals the inclusive nature of the U.K. Connery was knighted by the Queen in 2000 despite (a) living in the Bahamas to minimize income tax liability, and (b) supporting Scottish independence.
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Fears in the 1990s versus fears in the Age of Corona

by philg

Happy Halloween! Let’s consider how our fears have evolved.

In the 1990s, we were afraid of the following:

  • The government would invade our privacy via CCTV cameras when we were out walking around.
  • Microsoft would crush upstart competitors by bundling software with similar capabilities into their monopoly operating system. This could cost each of us $100 or more.
  • Everyone will be killed by HIV/AIDS
  • What else?

Fears today:

  • We don’t have to worry about CCTV cameras on the sidewalk since (a) it might be illegal to be out on the sidewalk to begin with, (b) if it were legal, we’d have to wear a mask.
  • Facebook, YouTube, Amazon, et al. will deplatform anyone who disagrees with what they deem to be RightThink on a wide range of issues.
  • Everyone will be killed by COVID-19
  • What else?

A friend’s minivan, decorated by a recent high school graduate…

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A 2016 Volkswagen e-Golf interfaces with the American used car market

by philg

A friend spent $10,000 on a 2016 Volkswagen e-Golf via Carvana, a fixed-price car delivery service. The vehicle arrived in beautiful cosmetic condition, but with a Nissan-brand charger that did not work, failing even to illuminate a green LED when plugged in, much less charge the Volkswagen. A week of hassle ensued in which the proud new owner was shunted from an auto parts store to a Volkswagen dealer. Eventually she got a Volkswagen-brand charger, which was a $700 part (enough for a year of minivan driving in the Age of Coronapanic and with gas at $2/gallon).

The new charger worked, but the car’s computer systems weren’t consistent. She would set off on a short journey with the computer showing a range of 80 miles and then watch the range forecast jump to 3 miles while the car stopped itself on the highway. 2.5 hours later, AAA towed the car away.

Eventually she decided to trade the car back for a 2010 Mini, powered, of course, by dinosaur blood.

I’m wondering if early attempts at electric cars will soon be clogging our junkyards. If her experience is typical, the systems seem to be at a Windows 98 level of reliability.

Speaking of cars, here’s a Mercedes ad from the a recent New York Times web page:

This leads to a “Pride month” web page on mbusa.com:

A Proud Owner Speaks

“This Pride month is unlike any other before it. We find ourselves in the middle of a global health pandemic, while so many of us have united in fighting to address and finally put an end to systemic racism and discrimination. As a proud Black and gay man, I take this time to pause and hold space for the Black community because we are hurting and we are demanding lasting change. Mercedes-Benz has stood with the Black and LGBTQ+ communities and has vowed to continue to be with us going forward.

As unique as this time is, it does truly echo and honors the legacy of bravery of the Civil Rights Movement and the historic Stonewall protests, which were led by pioneering Black transgender activists like Marsha P. Johnson. These movements, past and present, intersect at the common point of pushing towards equality for all.

(When you identify as LGBTQIA+, it is acceptable to modify “unique”?)

If the Wikipedia List of LGBT awareness periods is to be believed, Pride month is June, not October (home to Asexual Awareness Week, International Lesbian Day, International Pronouns Day, Intersex Awareness Day, LGBT History Month, Spirit Day, and National Coming Out Day).

We’re informed by the NYT that Americans who identify as LGBTQIA+ suffer employment and other discrimination that reduces their income and wealth. If so, how did they come to have $80,000 to spend on a Mercedes that performs the same function as a $25,000 Toyota or Honda?

Also potentially interesting: the Mercedes web site for German consumers does not contain any content regarding the company’s support of matters LGBTQIA+, at least none that a search-savvy Germany-speaking friend could find. Why are Americans so much more interested in this than Germans?

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Bloomberg tries to buy the elections in Ohio and Florida

by philg

From last month, The absurd conspiracy that Wall Street elites are manipulating American politics:

My Facebook friends like to conjure a bogeyman somewhere in the South or Midwest. He is wearing camo, carrying an AR-15, driving a car with a Trump/Pence bumper sticker, and spouting an absurd conspiracy theory about Wall Streeters manipulating American politics far beyond their coastal elite districts.

Showing just how wrong this conspiracy theory is: “Bloomberg pledges $60M to boost House Democrats” (The Hill). (This will also be great for allaying the concerns of those who believe that rich Jews have too much influence in the U.S.!)

From my inbox today, from MikeBloomberg.com:

Let’s turn Texas and Ohio blue

With four days until Election Day, we’re taking the fight to Donald Trump in two new battleground states.

Earlier this week, Mike announced plans to fund an ad blitz in Ohio and Texas in the closing days of the election. Now, new messages — about the worsening COVID-19 pandemic and Joe Biden’s plans to restore the economy — are hitting the airwaves.

You can help us get the word out. Watch and share the ads we’re running in Texas and Ohio: [links to ads such as this one]

The ads focus on Joe’s plans to “build back better” and Donald Trump’s mismanagement of the COVID-19 crisis. In the last two weeks, COVID-19 cases are up 60% in Ohio, 48% in Texas, and 42% nationwide.

These investments follow Mike’s commitment to spending $100 million in another key battleground state: Florida. That investment has helped mobilize voters and strengthened a COVID-19-responsible ground game to increase turnout for Joe Biden.

What if American voters do decide that an innumerate 78-year-old will, starting in January 2021, crack a medical/scientific/technical problem that has eluded all of the science-following European countries (exponential plague in the fully masked Old World right now)? How enraged are the working class folks who supported Trump going to be regarding the political influence of wealthy American Jews?

A 2015 photo of Chabad in Dallas. They might need to make a huge sign reading “We’re not Bloomberg-style Jews”…

The Fort Worth Japanese Garden (masks optional):

Just imagine how many awesome gardens Americans could have enjoyed if Bloomberg had decided to spend his $billions on gardens rather than on Trump hatred.

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How is my prediction about COVID-19 therapy by October looking?

by philg

From April 6, Best guess as to when the first successful COVID-19 therapy will be widely available?

Keeping in mind that it took months for coronavirus tests to be invented, approved, and manufactured (still not in sufficient quantities except for those who are hospitalized), what’s your best guess as to when you can go into the hospital ED, have the nurse shout out “COVID-19” and then an assistant comes in with some pills or a shot that will keep the symptoms down to some reasonable level of misery?

My guess: between July 2020 and March 2021, with October 2020 as the best single month guess.

How do we rate this prediction? I’m going to go with “Spectacularly wrong.” I started the April 6 post with “I’m a big believer that viruses are smarter than human beings.” Even with that, I was gulled into thinking that all of the world’s humans devoting nearly 100 percent of their energy to fighting coronavirus would actually be able to come up with something.

What do we have? From October 22, “FDA Approves First Treatment for COVID-19”:

Today, the U.S. Food and Drug Administration approved the antiviral drug Veklury (remdesivir) for use in adult and pediatric patients 12 years of age and older and weighing at least 40 kilograms (about 88 pounds) for the treatment of COVID-19 requiring hospitalization. Veklury should only be administered in a hospital or in a healthcare setting capable of providing acute care comparable to inpatient hospital care. Veklury is the first treatment for COVID-19 to receive FDA approval.

Mission Accomplished?

A second randomized, open-label multi-center clinical trial of hospitalized adult subjects with moderate COVID-19 compared treatment with Veklury for five days (n=191) and treatment with Veklury for 10 days (n=193) with standard of care (n=200). Researchers evaluated the clinical status of subjects on Day 11. Overall, the odds of a subject’s COVID-19 symptoms improving were statistically significantly higher in the five-day Veklury group at Day 11 when compared to those receiving only standard of care. The odds of improvement with the 10-day treatment group when compared to those receiving only standard of care were numerically favorable, but not statistically significantly different.

In other words, you need multiple studies and a Zoom session full of statisticians to tease out any useful effect.

Does GB get the prize for accuracy so far? His comment:

Some of the fat and lung comprised will die and the rest will be cured, by virtue of not already being unhealthy. Medical cure, nope, modern medicine ain’t that good.

Who wants to make a new or revised prediction of when medicine will simply cure us of Covid-19?

Related:

  • A typical failure… “Lilly Statement Regarding NIH’s ACTIV-3 Clinical Trial” (October 26): Based on an updated dataset from the trial reviewed on October 26, no additional COVID-19 patients in this hospitalized setting will receive bamlanivimab. This recommendation was based on trial data suggesting that bamlanivimab is unlikely to help hospitalized COVID-19 patients recover from this advanced stage of their disease. In this updated dataset, differences in safety outcomes between the groups were not significant.
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Mark Zuckerberg uses his $110+ billion wealth to lobby for a tax increase on people other than Mark Zuckerberg

by philg

“California Tax Revolt Faces a Retreat, 40 Years Later” (NYT):

The new initiative, Proposition 15, would amend the state’s Constitution so that properties like offices and industrial parks would no longer be protected by Proposition 13. By creating a “split roll” system, in which residential property would continue to be shielded from tax increases but commercial property would not, backers hope to capitalize on Democratic energy to raise taxes on large corporations without alarming homeowners.

Proposition 15 would raise $6.5 billion to $11.5 billion a year for public schools, community colleges and city and county governments, according to a nonpartisan state agency. The Yes campaign, called Schools and Communities First, is backed by a number of public employees unions and the Chan Zuckerberg Initiative, the philanthropic organization founded by Mark Zuckerberg, the Facebook chief executive, and his wife, Priscilla Chan.

So… Mark Zuckerberg doesn’t want to see higher taxes on all forms of wealth, but only on wealth held in the form of real estate (0.01% of his personal wealth of at least $100 billion?)!

Separately, it turns out that commercial property owners actually don’t pay that much in tax in California:

It is not uncommon for neighbors to pay double or triple the taxes of a similar home on the same block. A recent analysis of property taxes across the Bay Area is rife with eye-popping comparisons, like a $9 million home in an exclusive neighborhood of San Francisco that has lower property taxes than a $331,000 home near an oil refinery across the bay in Richmond.

When Proposition 13 passed, commercial property taxes were almost an afterthought. But since skyscrapers and shopping malls do not change hands as often as homes do, the law has shifted the property tax burden from corporations to homeowners. In 1975, a little under half the property taxes in Los Angeles County were paid by commercial properties. By 2017, commercial properties accounted for just over one-quarter of the property tax roll.

One part of this may be that each commercial property tends to live in its own LLC (oftentimes this is a condition of getting bank/mortgage financing). (So a guy like Donald Trump with multiple properties will inevitably have a complex tax return.) When investors come in and get bought out, the official ownership of the building hasn’t changed (still the LLC). California seems to have a mechanism for updating tax liability if most of the membership interest is swapped out, but I wonder how they enforce this in practice (since membership interest might not be accessible to the California government).

A friend who is a lawyer in Long Beach told me of doing some work for an apartment building owner. While doing this work he discovered that the massive apartment building paid less in property tax than he owed for his modest 2BR house.

As a percentage of residents’ income, California collects the 6th highest percentage of any state (Tax Foundation). On the other hand, the government is not nearly big/rich enough to give voters everything that they want and certainly not to give retired public employees everything that has been promised to them in terms of pensions and health insurance. So the state government will need massive additional revenue. But why not a straight wealth tax on Silicon Valley billionaires?

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