Tag: CNN

The Key to JFK’s Leadership: Inspiration

WARREN BENNIS, USC Leadership Institute, USC Marshall School of Business.

This op-ed originally appeared at CNN on Nov. 21

I vividly recall those 13 days in the fall of 1962, watching President John F. Kennedy on our black and white television in Cambridge, Massachusetts. I was a professor at MIT focusing on the emerging field of leadership studies, and the Cuban Missile Crisis was about leadership writ large for the world to witness.

Fifty years after the Kennedy assassination, there is conversation everywhere about JFK’s unrealized potential. Amid the wave of sentimental reflection this year, there has been much focus on the mythical elements of Camelot or too many details about that tragic day in Dallas, and not enough on the real-world challenges of the JFK presidency.

A Low Tax Burden — and Still Complaining

EDWARD D. KLEINBARD, professor of law, Gould School of Law.

This op-ed originally appeared April 22 at CNN.

Tax day may be over, but many Americans are still suffering from tax hangovers.

If it’s any consolation, here’s our country’s best-kept fiscal secret: According to the Organization for Economic Co-operation and Development, Americans in 2012 enjoyed the lowest tax burdens as a share of our national economy of any developed country in the world.

How can it be that we feel so much tax pain, but compared to other developed countries our tax burdens are so low?

There are three reasons.

Zuckerberg’s Tax Burden: $2 Billion and Done

EDWARD J. McCAFFERY, professor of law, Gould School of Law.

This op-ed originally appeared at CNN on April 9.

So, you think you have it bad this tax season. Have you heard that Facebook founder Mark Zuckerberg will pay between $1 billion and $2 billion in taxes? That sounds like a tough pill for anyone to swallow.

But it is premature to start a pity party for Zuckerberg. The twenty-something billionaire reaped large financial gains from exercising the stock options that triggered his tax bill, and he has benefited from favorable tax rules along the way. Even better, Zuckerberg will survive his encounter with the tax man in a position to never have to pay taxes again for the rest of his life.

Mickelson’s in a Tax Trap

EDWARD J. McCAFFERY, professor of law, economics and political science, USC’s Gould School of Law.

This op-ed originally appeared at CNN on Jan. 25.

Phil Mickelson, aka Lefty, is thinking of leaving California and perhaps America because, according to his own reckoning, he is facing tax rates of 62% or 63%. Mickelson, probably the second-most-famous professional golfer in the world after Tiger Woods, later backed off from his initial comments about making “drastic changes.”

Reports suggest that Mickelson earned more than $60 million in 2012. In that sense, he appears to be doing better than the Romneys, and perhaps you are not all that sympathetic to him.

Schools Are Hardly Gun-Free Zones

RON AVI ASTOR, professor of urban social development, USC’s School of Social Work and Rossier School of Education.

This op-ed originally appeared at CNN on Dec. 21.

Last week’s massacre at Sandy Hook Elementary School in Newtown, Connecticut, appears to have at least temporarily changed the debate on gun control and opened the door to new restrictions.

Following up on his pledge to “use whatever power this office holds” to prevent another slaughter at a school, President Barack Obama has said he will submit new gun-restriction proposals to Congress in January. But the obstacles to progress remain formidable, chief among them the political power of the gun-rights lobby in Washington.

A Ramp Away From the Fiscal Cliff

EDWARD D. KLEINBARD, professor of law, USC’s Gould School of Law.

This op-ed originally appeared at CNN on Nov. 30.

America’s fiscal policy faces an apparent Hobson’s choice. On the one hand, we need to tame federal deficit spending by imposing new across-the-board spending cuts and higher taxes. We are told that if we do not act on this soon, the debt markets will choke on the overabundance of government debt issued to fund those deficits, causing interest rates to climb. As a result, businesses and homeowners will be unable to borrow on reasonable terms, which will lead to a slowdown of the economy.

How Lawyers Undermine Access to Justice

GILLIAN HADFIELD, professor of law and economics, USC’s Gould School of Law.

This op-ed originally appeared at CNN on Nov. 25.

In our country, lawyers and judges regulate their own markets. The upshot is that getting legal help is enormously expensive and out of reach for the vast majority of Americans. Anyone faced with a contract dispute, family crisis, foreclosure or eviction must pay a lawyer with a JD degree to provide service one-on-one in the same way lawyers have done business for hundreds of years.

Increasingly, the only “persons” with access to legal help are “artificial persons” — corporations, organizations and governments. No wonder that in a 2010 New York study, it was shown 95% of people in housing court are unrepresented. The same is true in consumer credit and child support cases; 44% of people in foreclosures are representing themselves—against a well-represented bank, no small number of whom engaged in robo-signing and sued people based on faulty information.

Warriors on the Edge of a Fiscal Cliff

RON AVI ASTOR, professor of urban social development, USC School of Social Work.

This op-ed originally appeared at CNN.

With the presidential race heading into its final stretch, both candidates vow to protect the sacred promises made to military families. But neither is offering any details on how they might support military families if we hit a fiscal cliff with budget cuts that could wipe out services for military and veterans’ families.

Month after month, in the midst of a heated presidential and congressional pre-election cycle, we see no organized blueprint to integrate millions of military family members into civilian society.

The Great Diversion: Romney’s Taxes

EDWARD J. McCAFFERY, professor of law, economics and political science, USC’s Gould School of Law.

This op-ed originally appeared at CNN.

By now, most of us have probably heard that Mitt and Ann Romney paid just under $2 million in taxes on income — virtually all from investments — of just under $14 million for 2011, an effective tax rate of 14.1%. This is a low tax rate, lower than the typical middle-class American worker pays, especially when one considers payroll taxes, the largest burden for most Americans. It should concern us that individuals of Romney’s wealth — analysis has put his personal fortune as high as $250 million, not counting some $100 million in trusts set up for his five children — pay so little as a percent in taxes.

Profiles in Tax Avoidance

EDWARD D. KLEINBARD, professor, USC’s Gould School of Law, and Peter C. Canellos, former chair of the New York State Bar Association Tax Section.

This op-ed originally appeared at CNN.

Mitt Romney’s refusal to release tax returns in the critical years of his income accumulation has done little to dispel the legitimate concern that arises from hints buried in his scant disclosure to date: Did he augment his wealth through highly aggressive tax stratagems of questionable validity?

One relevant line of inquiry, largely ignored so far, is to examine what exists in the public record regarding his attitude toward tax compliance and tax avoidance. While this examination is hampered because his dealings through his private equity company, Bain Capital, are kept shrouded, there are other indicators.