The Three Paycheck Month

May is the best month of 2013.

My employer pays my salary in bi-weekly direct deposits.  I have become accustomed to a monthly routine of my cash flow based on two paychecks per month.  All of my expenses and cash outlays are an allocation of these two pay days.

The month of May, however, was different.

It was better.

American Made... Sort Of

American Apparel, Inc. is a relatively young but growing clothing manufacturer and retailer.  The company's website boasts of it's "sweatshop-free" manufacturing facilities located in the United States.

The About Us section goes on to deliver self back pats with regard to compensation:

A garment worker in Bangladesh earns an average of $600 a year. An experienced American Apparel garment worker can earn $30,000+ and receive benefits such as comprehensive health care.

From the company's description, its compensation package is sound, including free parking, free massage, and subsidized health care.  Yet strangely no commentary on the relative purchase power of a US Dollar in Bangladesh.  True, $600 is a small amount of money, but don't get too high and mighty, $30,000/yr  in LA isn't exactly "swimming in it."  Let the record reflect that it's below the Federal Poverty level for a family of 6.

Why Congress Won't Simplify the Tax Code

Legislators from both major parties agree that the Tax Code in America is too complex.  Party leaders on both sides of the aisle are calling for simplifying the code and making it more "fair."  (Disclaimer: there is no consistent definition of the term fair, especially as it relates to the collection of taxes.)

The average taxpayer does not benefit, in the least, from the complexity of the tax code.  Complexity makes complying with the law extremely difficult and/or costly.  But the confusion does serve a purpose, it muddies the water allowing legislators to claim victory to their constituents for a job well done, without actually having to accomplish any feat at all.

Consider a media and political favorite tax provision called Bonus Depreciation.  In the bail out / stimulus packages of Presidents George W Bush and Barack Obama, both Presidents claimed victory for helping small businesses by passing or extending bonus depreciation rules.   These rules provided another vehicle for businesses to speed up tax deductions related to capital assets like equipment, machinery, planes, automobiles, etc.

The Proper Bipartisan Position on Internet Sales Tax

To all of those waffling legislators who are "treading lightly" while trying to decide what position to take on the Internet Sales Tax Bill here's the right answer:

"States already have the right to tax out of state purchases, whether those transactions are conducted online or otherwise, through Use Tax provisions.  The States, as it relates their concerns for increasing revenues, should be focused on enforcing their existing law or enacting other provisions to achieve their revenue goals.

This Federal legislative body will no longer spend any more time deliberating or attempting to legislate the matters which are reserved for the States to decide themselves."

Trust me... I watch Mad Men

Cases of marketing departments working too hard?

First, Kool-Aid launches a rebranding of the "big red mascot."  ABCNews reports that the mascot "will be computer-generated and take on the personality of a celebrity trying to show he's just a normal guy."

What could possibility make people thirstier for grape sugar water than a simulated celebrity trying to convince consumers that he's really not that big of a deal?

Also, according to the BusinessRecord:

Iowa Health System, the fifth-largest nondenominational health system in the nation, announced today that it has changed its name to UnityPoint Health. The change reflects the health system's shift from a hospital-centered care process to one that more effectively addresses the total care of all patients, officials said in a release.

So "UnityPoint" is supposed to conjure up images of total care and maybe even wellness?  Dropping "Iowa" from the name makes a modicum of sense, considering that the enterprise has operations in the state of Illinois and could be eyeing acquisitions in other states around the Midwest.  So why not just say it, if that's the reason?  Why do they have to get all touchy feely about it?

Full Disclosure:  I suppose it's not the newspeak name or the 'tired of fame' beverage pitcher that's bothersome, it's that I would have charged half the amount to come up with it. #Jealous

Responding to my State Senator

Senator Schneider:

I am a Northern Iowa Accounting graduate who passed the CPA Exam and am a member of the American Institute of CPA's.  I'm also one of your constituents and voted for you.  Because of this, I feel led to reply to a recent update you posted to your website  schneiderforiowasenate.com

Below is the text of the relevant portion of your post:

Are Actuaries Evil? No, Just Their Estimates.

In the murky waters of life lurks an evil that has haunted man for ages:  estimates.

Financially speaking, estimates are everywhere and affect the consumer and investor alike.  Estimates affect everything from the complexities of pricing insurance and revenue recognition on long-term contracts to the simplicity of a grocery store ordering enough milk or company on the verge of hiring another employee.

There are some popular quotes about opinions being foul smelling.  But what's the difference between an opinion and estimate?  Most likely, a sick Excel spreadsheet.

Sales: Never Pitch on The First Date

Highlights of my sales career:

• Red Wheel Pizza Sales while fundraising for my 4-H Club
• Cashier at the local hardware and farm supply store during High School
• In college sold old, non-moving, space-intensive inventory on eBay for my technology impaired boss
• Having a date to prom both Junior and Senior year (a true sales job, I’m talking ketchup popsicles to white gloves)

This body of words below obviously does not come from a trained, professional sales person.  But I do consider myself a student of the sales experience.  I’ve been on the buyer’s side of the table both as an individual and in business to business for products/industries including group health insurance, P&C and liability insurance, IT, retirement plans, automobiles, livestock, housing and many more.  From big dollars to small dollars, I love the process of buying and selling things and thinking about why people buy and how people sell.  So from one young professional to another, use this insight for whatever it’s worth… even if that’s the “circular file,” I’m okay with that.

What's So Great About the Way We Farm?

Are there any industries, other than production agriculture, that buy inputs at retail price and sell goods at wholesale price?

A conventional farmer buys seed, fertilizer, chemicals, and equipment at full retail value from a manufacturer.  Farmers utilize those ingredients to grow large quantities of a commodity - corn, soybeans, or wheat among others – and sell their wares at wholesale prices to a manufacturer who will sell a product at retail price to a consumer.

Where I Belong

Am I really in the right job, am I using all my skills, am I challenging myself, am I working hard enough, am I working too hard?  Should I go back to school for a graduate degree, should I quit my job and become a missionary, should I go back to public accounting, should I start farming?  Should I learn how to write code for software programming, should I dedicate more time to write, do I spend too much time writing, does anyone ever read these things?  Would it be smart to sit tight until I find a wife before making a bold career move?  Or should I make the move and let relationships worry about themselves? Should I buy a new sexy pickup truck, should I buy a house, should I buy stock options that could pay off in multiples (or zero), or save it for a big shiny engagement ring in case I run into “Ms. Right?”  Or have I already run into her and I need to stop being ridiculous?