Loose tax laws in Delaware have made the state a “tax haven” for businesses. The Delaware Loophole—the lack of intangible assets taxation—allows businesses to transfer parts of their companies to Delaware and abide by the state’s laws and taxes. Studies show that firms with a “Delaware-based tax strategy” are able to reduce their state taxes by 15 percent to 25 percent compared to other firms. Other states lose billions of dollars in tax revenue, yet they may be as culpable as Delaware. According to The Atlantic, political reasons inhibit states from changing policies. Though 25 states have adopted combined reporting—protecting them from damage caused by corporations relocating to Delaware—states and politicians who want to appear business-friendly are afraid to add new corporate taxes. Some states have even enacted their own tax breaks for companies, sacrificing considerable tax revenue. Read more.
Netflix co-founder and CEO Reed Hastings ’83 and civil rights activist DeRay McKesson ’07 have been included in Vanity Fair‘s compilation of what it calls the new establishment, comprising silicon valley hotshots, Hollywood moguls, Wall Street titans, and cultural icons.
At #6, Hastings is lauded for his “display of Vulcan chess mastery” for a deal he cut with Disney. McKesson, coming in at #86, is credited with transforming the Twitter hashtag #BlackLivesMatter “into a sustained, multi-year, national movement.” Read more about them and the others making the list.
If you make $135,000 and you’re 31 or younger, you are richer than 99 percent of your peers, according to The Atlantic. But it’s hard to stay there, unless your boss is very generous with raises. A 30-year-old earning $130,000 in 2010 was in the top 1 percent, but people just a few years older were earning $80,000 more. And by age 45, one percenters were pulling in more than $325,000.
Check out The Atlantic’s graphs (for income and wage, only, not investment wealth) to see how much income you need to earn to land in the top 1 percent or .01 percent of your age group.