Rick Kelo- Understanding Tax Rates on a Deeper Level

Rick Kelo is an Authoritative Economic Voice, Who Helps Others Understand How Ideas Have Shaped Our Modern World

Nothing quite sparks heated debate in the US as does the subject of taxes and what we should and shouldn't be paying. On the one hand, many see taxes as an important part of civilized society- providing the government with the money to spend on things we can all benefit on- schools, roads, hospitals and other aspects of infrastructure. For others, taxes are the government greedily deciding how our hard earned money should be spent, and taking the power into their own hands. In many ways it also explains the partisan political divide in the US, as many of these ideas fall on either side of the Republican/Democrat fault line.

Rick Kelo is a head tax adviser, and also prolific economic thinker. He is a member of the academic question and answers forum Quora.com, where he helps answer users questions about economics and explain them in context of the real world. A recent question posed was as to Why the US has the Highest Rate of Business Taxes in the World. IN a short and informative response, Rick Kelo answered as follows.

''Firstly there are Marginal Tax Rates, or the maximum amount on paper that a corporation may pay before deductions. Secondly comes the Effective Tax Rate (called ETR in taxation). This is the amount that a firm actually does pay after deductions. The other point I’d clarify is you say “Businesses.” Really in an American context we’re talking about C Corps, and in the context of the answer I am about to give you it is publicly traded C Corps. It is impossible to verify or truly know the tax rate of private companies. America's Effective Tax Rate, that our large corporations actually pay, is the second highest in the world. Our multinationals (MNCs) pay an average ETR of 30%. Only Japan is higher at 37%.''

Rick Kelo has seen himself become an important member of the Quora community, where he has been able to use it as a platform to share his ideas on classic liberal economics, and the importance of keeping old ideologies such as socialism at bay. His educated mind is one of many which is most welcome on forums such as Quora, which are helping shape the way people think in the age of the internet.

Rick Kelo – The Right Way to Handle Finances as a Small Business

For small businesses, and large businesses for that matter, there are few things more important that correctly managing finances. When just starting out, the scale of a business’ financial structure is typically such that the average individual can handle the organization and filing on their own. As the business grows, however, it becomes increasingly important to bring in a professional. This is for two reasons. The first reason is the sheer volume of tasks that must be handle as they relate to a company’s finances. This is not something that one single person has the time to do on his or her own. Second, as a company grows and becomes more complicated, so too do the taxes and other financial matters for that company. The consequences of incorrectly filing your taxes or making a mistake in the record keeping for your company can result in fines or even jail time. That is why for any business that has its feet underneath it and is starting to develop serious revenue and a serious client base, it is important to find an expert who can help you manage your assets.

According to recruiter profile, Rick Kelo (inChicago, IL) that is exactly the type of service that TaxScout brings to their clients. TaxScout is the largest tax professional placement service in the country. They offer the best candidates and continue to work with clients after placement in order to manage retention of the professionals they have placed. What TaxScout and Executive Recruiters such as Rick Kelo specialize in is helping bring together tax experts looking for employment with businesses that need financial support. Rick Kelo and other professionals help with this by creating company candidate databases to comply with OFCCP, promoting diversity, developing client bases, advising on retention policies, and advising on fair market compensation for the experts that they place.

One of the company’s biggest accomplishments is their impressive 70% retention rate. This means that roughly 70% of the financial experts they place in companies stay with that company in the long run, more than double that of other firms. This is because TaxScout continues to work with clients after placing them with a suitable company in order to manage the retention of the professionals they have placed.

For more information about Rick Kelo, TaxScout, or the services that they can provide to you or your business, visit his professional website, LinkedIn, or any of the various blogging platforms that publish his articles.

Rick Kelo – Bubbles

As a tax expert with a degree in economics, Rick Kelo knows (and has written more than one article) about economic bubbles. A bubble, to put it one way, occurs when any asset is traded for a price that far exceeds that item’s intrinsic value. A bubble is far from a new phenomenon; as a matter of fact, the first bubbles occurred in the 17^th century, well before real-time information on any asset was available.

Bubbles, of course, lead to economic crashes, which lead either to recessions (bad enough), or outright depressions (far worse). The British South Sea Bubble, which occurred in the years 1711 to 1720, gave us the term we use so often today. Previous bubbles (including the Dutch tulip bubble, which caused widespread economic devastation) were known as “manias”.

Some economists are of the opinion that a bubble cannot be identified before it begins, and thus, that a bubble cannot be prevented from starting. They believe that any measures taken to prevent the formation of a bubble will create a crisis; therefore, it is best to let a bubble form and burst – which, also, will cause a crisis. Not only that, but the subsequent crash can cause long-term economic problems, as shown by the Great Depression of the 1930s, and the housing bubble of earlier this century.

When a bubble has formed, owners of the assets that are the subject of the bubble have the tendency to spend more. Given that their assets are seriously overvalued, these owners feel that they are richer. The housing bubble is one such example. Then, when the bubble bursts, spending is cut and economic growth slows considerably.

Economists have yet to agree on what causes bubbles in the first place. One theory puts forth the idea that they are driven by sociological factors. Another theory is that excessive monetary liquidity creates banks to lend money under unfavorable terms. This, in turn, creates markets that are vulnerable to inflated asset prices driven by speculation. To quote Axel A. Weber, formerly the president of Deutsche Bundesbank, “The past has shown that an overly generous provision of liquidity in global financial markets in connection with a very low level of interest rates promotes the formation of asset-price bubbles.”

In other words, when assets are highly appreciated, economic bubbles tend to occur. When the bubble bursts, as it must, assets fall in price and confidence sinks, which may lead to a financial crisis.