Kate McKeon

So the concept of tax reform gets several of my family members hot and bothered . . . I’m not sure what that says about my family but I leave that for a therapist to sort out in 10 years when I have time for a visit. In the meantime, I propose the following:

1. Flat tax, say 15% on current income for those earning more than $50,000 annually. For those earning less than $50,000 annually, total payment can be made in kind as in #2 below. No loop holes. This will be a huge boost to the Treasury and will reduce the dead weight cost of filing for those who are contributing less than 5% collectively to the Treasury. See contributions based on income level on the middle of this page. Remember, the top 5% of tax payers contribute 57.1% of the total. The bottom 50% of tax payers contribute less than 3.3%.

2. In exchange for getting back at least one weekend a year, you will be expected to contribute to local charities that meet certain thresholds. You have the option of contributing TIME or MONEY or any combination of the two. The point of this measure is to reconnect locals with locals. Charities to benefit consistently demonstrate that more than 80% of all funds raised go directly to the mission purported and MUST BE LOCAL. This should not discourage you from supporting non-local charities as you are gaining both time and money from the measure. This measure is to redistribute our most valuable resource, you. Your intellectual capital deployed locally is much more important than a long-distance, fickle fingered bureaucrat’s.

By the way, the donation of time and or money must be done by you, personally. This represents work/money for a tax rebate. You may pay your way out (thereby negating the effective rebate) or you may perform the work yourself.

Proposed Schedule of work:

< $50,000, 25 hours of community service
$50,000 – $125,000, 10 hours of community service
$125,000 – $250,000, 20 hours of community service
>$250,000, 45 hours of community service

This schedule represents my experience working with those in a variety of income brackets – who has free time and free cash flow.

The pay your way out schedule would look more like this:

< $50,000, 15% of your total income
$50,000 – $125,000, additional 5% of your total income (above the 15% flat tax)
$125,000 – $250,000, additional 5% of your total income (above the 15% flat tax)
>$250,000, additional 10% of your total income (above the 15% flat tax)

I’d like to see the rate even lower, and it is important conceptually for everyone to pay into our system. Our government doesn’t really need that much money when we trim the fat and turn over local activities to local people. We will fund the government for less administration and more administering. We need a Federal system for roads, but do we need a Federal system for schools? 

A rant about the failure of of educational system. Are our best and brightest simply delusional?

A suitor, Jay*, recently approached me about taking the GMAT. He knows that I teach for ManhattanGMAT (a super fantastic group!) and he was prepping to take the test on his own. I shared some general words of advice and suggested a few particular areas of study that most self-study students ignore. Let me state clearly, he is NOT a ManhattanGMAT student.

We had drifted apart by the time he took his test, but he did call to give an update on his progress. He performed well below his expectation and was shocked. I was not so shocked…. While Jay is a nice guy, he is not likely to do well on the GMAT and is likely to struggle through any MBA program. Comprehension is not his strong suit.

 For example, after 6 months of study, he did not understand that the test is adaptive.

On the phone he complained that the test was more than a "test of the basics," and he wasn’t expecting it to be so hard. The books he used clearly state that the test is adaptive – so he simply missed this point, and the test is actually a test of the basics . . . however it is a test of your MASTERY of the basics. In other words, it is not sufficient to be able to calculate the area of a triangle only when given the base and the height, you may need to calculate the base and the height from information given. How often do your business problems come with a full fact set, clear solution and "correct" answer?

Jay proclaimed that he understands triangles and that he earned a 98 in Algebra and was an "A" student in math. He "understands" Geometry, Alegbra, Equations, Fractions…." Yet, he was unable to solve for the Area of the Triangle above. He remembered 1/2 b*h, but was unable to find the height of the triangle.

He has superficial understanding of triangles but does not understand the concepts.

I have no bone to pick with Jay, but I do want to shake up the Richardson school district for sending him out into the world believing he understands math and is "good at math." He is delusional. If I had a 98 in math, I too would think that I was pretty good at it.

Perhaps he is a one-off? No, like the two Richardson Algebra II students I tutored before December finals, he is sadly not a one-off. The Honors student was unable to factor 9x^2 – 25y^2. Sure, how often do you need this stuff? Rarely. BUT, we are training students to believe they actually know things that they don’t even begin to grasp. It is shockingly bad. Yet, from a student perspective I understand part of the Whys this is happening. Have you seen these textbooks? Holy bleeep!

Current textbooks are 100 pounds of pure horrible. The Algebra II textbook explained parabolas in such a way I began to doubt what I know. The way the material is presented lends itself to memorization, not to understanding, and certainly not to mastery.

It is better to understand WHY 2+2 is to equal 4 then to memorize the problem 2+2 = 4. We are feeding our students superficial knowledge and then patting them on the heads with inflated grades. Folks, no amount of self esteem can help you when you suck at math. You will have trouble – you will spend more than those who understand math because you are more likely to be taken by the car dealer, mortgage broker, credit card company, etc. It is better to train ALL of our students to have basic life skills. Math is one of those life skills.

So maybe we have to pay Ashley Alasky to add math concepts to all her syrupy songs. That’s something I’d support with a few dollars (private dollars).

Answers:

9x^2 – 25y^2 = (3x-5y)(3x+5y) This is an application of the x^2-y^2 special factorization model . . . it doesn’t change when you add coefficients.

A tidbit most pertinent to those who live and die by the mantra that the rich are getting richer and the poor are getting poorer….

From an interview with Thomas Sowell on his new book, "Economic Facts and Fallacies."

If we follow human beings instead of income brackets, perhaps we can find more meaningful information as to who is doing better and who is doing worse. Maybe? Think about that. Yes, the top end is getting larger and zero is staying the same as our economy shifts to more sophisticated skills and paying people more for those skills, but is it necessarily true that those making $20K annually will stay in the $20K income bracket over a decade? What about those making over $1M annually? Will they stay in their same bracket over that same decade?

"What happens to a bracket is an abstract question; what happens to the flesh-and-blood human beings is different."

Here’s what gets interesting… The flesh-and-blood people in the bottom 20% of tax payers in income in 1996, their average increase of income over the next decade was 91%," almost doubling their income in a decade.

So how about the folks who are in the top 1%, "The rich who are getting richer?" Thier average income declined 26%.

<<PAUSE>>

That is about as opposite as you can get from the blah, blah, blah our media outlets and politicians are producing.

Check the facts yourself: Treasury Department (this will open the pdf in your browser  – if you prefer, search the treasury website for Income Mobility Study http://ustreas.gov)

First off, this may be a bit of a rant . . . You see, I am a bit frustrated.

In late September I started a hiring process. I was attempting to hire 2 writers on a temporary to permanent basis. I took applications electronically; I gave skills tests, written and phone interviews. It was a fairly thorough process – no CEO vetting, but involved – more than what you might expect for a $30-40K, part time writer position.

I narrowed the field to 7 and offered 4 a paid trial period. Two of those writers were not heard from ever again, and the other 2 did not prove to have the full skill set  professed…. Okay, fine, scratch those 4. (Under my breath I curse *creative types*) The next 3 in line didn’t bother responding to my trial run 2 weeks later – I don’t blame them, but they can’t really be as passionate about the subject as they claim if they aren’t willing to take my call 2 weeks later after telling them they would be in the second round. Full disclosure on my part.

So by this time it is mid November and I really need a solution to my lack of writers. I put the word out in the community, but I don’t really hang with writers so it was a slow trickle. Finally at Thanksgiving I was put in touch with a new college grad who needed cash and claims to be a copywriter, had credentials, etc. Perfect!

NO.

It looked like we’d at least pull some content out before the holiday dash, but he vaporized right at the climax of the process leaving a big fat zero behind. You see, he got a full time offer. Now, I am happy to hear he’s gainfully employed, but would it have killed him to send me an e-mail upon deciding that he wasn’t going to finish up the project? Four plus days later he dropped me a note to let me know he had a job. Thanks buzz-boy. Brilliant.

Where do these folks learn their manners? It’s one thing that we must have Britney’s delicate bits thrust in our collective faces – for that I gave away my TV and I don’t bother with radio. It is a far greater shame that common courtesies such as letting people know you’ll be 5-10 minutes late or (heaven forbid) you don’t plan to do the work on a project to which you’ve committed, are so terribly uncommon.

Most of the folks I know who have done well for themselves worked an additional part time job during their early working years to scrape together cash…. Is that value lost on this new generation? Must we know more about Brangelina’s sex secrets and less about how to treat each other in civil society?

So with that I am on a hiring freeze in the USA. I will not hire anymore brats, young or old. We’re spoiled and fat. COAL FOR US ALL THIS CHRISTMAS!

I’ll hire in countries where people want to work, show up for work and produce when and WHAT they say they will produce. I’ll stick to countries where they think you’re a stud if you are clever enough to work a few extra hours to save a few extra bucks. I’ll go back to having my 5:30A conference calls so we can get Europe and Asia on the same call. And like a cranky old man sitting in his rocker on the main drag of main street 50 years ago, I’ll shake my little fist at all the whipper-snappers zipping about with their infernal ipods and doodahs.

Bah Humbug.

So this conversion to Mac is not as smooth as I had hoped. Daily, I manage to crash the machine. Too bad it is the middle of my sales season and work grinds to a halt 6-8 times a day for 10+ minutes. I’ve easily added 2 hours of additional work daily just by trying to convert to mac.

Anyone want to buy an iMac? I’ll make you an offer you can’t refuse….

Technorati Profile

Say what you will about gun control, there is a certain amount of empowerment that comes from understanding how to use tools – in this case guns. I also think it’s useful to know how to drive a dozer, hang sheetrock overhead and mulch the yard, but then that’s what I grew up doing.

Sane people using deadly guns for peaceful means was a concept introduced in college. It was during my college days that Texas’ Concealed Handgun act passed. Some of my favorite people became Marines and all of them knew how to fire weapons of various excitement. It would, afterall, become a condition of employment. I stayed on the New England side of gun-totting which is to say, NOT totting. I would be shocked to learn that any of my family members owned a gun post military service. This despite the fact that my paternal grandfather and his brothers owned a Liquor store, my godfather/uncle was a career Naval Officer and another uncle was a street detective in D.C. We’re a peaceful, academic family. Gun-totting is not the norm in Rhode Island and Massachusettes.

It wasn’t until Fall of 2001 though that I had my first practice with a real firearm. I’d been pretty handy with a BB gun as a little girl, but a 45 packs a bit more punch. My first range outing was with a motley crew including my boyfriend and my boyfriend’s most recent ex-girlfriend. Hmmmm, yes, it did actually become a problem. I vividly recall the 45 being pointed at my face by said ex-girlfriend – that, for the record, is bad gun range etiquette. Nevermind, I discovered that 1. hitting the target really wasn’t too difficult and 2. damn that 45 is a heavy piece of #$#Bleep#$#. I cozied up to the 22 and enjoyed the day. But, this was not a sport I planned to master….

Fast forward to today, literally, today. This afternoon I had a chance to visit a range once again. I thought we would be firing the ubiquitous AK47, but instead we had a 9mm and a 357Magnum. Okay, fine. I wondered if I could even hit the target.

As it turns out, yes, I can hit the target!

I started with 38 rounds in the 357 and then moved to 357 rounds in the 357. The 9mm was gumming and I have no interest in fooling with a gumming gun. Thank you, I’ll stick to revolvers for now. After a few rounds, my friend explained how to actually aim the weapon and bammo! I was in the center of the target. Could it really be that easy? As it turns out, yes. And quite exhilerating too!

So if you are on the fence about guns, consider finding a gun-totting friend who’s willing to introduce you gently. Or head over to a local range as ask them for a little guidance.

If you haven’t had the chance to read George Leonard’s Mastery, do yourself a favor and pick up a copy. I happened upon the book at the same time I picked up Blueprint to a Billion this summer and really couldn’t have found a better companion book.

You may forget that this book was written 15 years ago when you see the title for Chapter 3: America’s War Against Mastery. Could that be any more true today? Who among us is encouraged to simply stay on the path to mastery which can include long plateaus of no seeming progress?

And yet, who do we still revere – at least when Brit’s wearing her knickers? Those who have mastered something: sports, science, medicine, art. We still adore, admire and seek the Masters, but we don’t allow ourselves the opportunity to become masters. It is a contrarian who stays on the Master’s path.

The introduction says it best, "the mysterious process during which what is at first difficult becomes progressively easier and more pleasurable through practice." It is a warning against the quick fix and end game solution. It is about taking pleasure in the path not simply enduring.

Perhaps my favorite snippet which refers to dishwashing. "You can perform that chore in a hurried and haphazard way, with your main goal being to get it behind you as quickly as possible. Or you can do it as meditation, a dance." Can you see how much more pleasurable life could be if we chose to center ourselves and take the master’s path even in the most ordinary components of our daily lives.

For interest in a concept near and dear to my heart, please visit Miss Mentor today. I’ve just updated the How to Build Wealth Series which takes users through the process of laying out the most sensible plan of action for managing their funds.

It’s not the sexy, here’s how you hedge with puts and calls, advice but rather the clean simplicity that, really, we could all use. How much benefit do you get following the market 24/7? Unless you’re a trader, and even then, unless you’re a trader with an excellent track record, I’m willing to bet the combination of time, money and energy you’ve spent chasing your own tail would be better spent plowed into a local business, your own business or just about anything over which you have a modicum of control. Since most of us have no appreciable control over the NYSE, why spend so much time and energy watching it?

It’s kind of like going to a game. Let me explain. I watch hockey . . . a LOT of hockey. While I do sit close to the ice, I have very little ability to influence any given game. Sure, I could say mean things to the kid in the penalty box, but if he hasn’t heard the taunts I have by the time he’s reached the NHL, well, then, he’s probably deaf and won’t be hearing mine. I could also flash everyone on the ice . . .  The novelty of it might influence a particular play, but not too likely to do much else. I could also wear an inflammatory t-shirt like we did last year for the Detroit game. Chris Chelios was kind enough to approach the glass in front of us, throw off his mits and treaten to climb over to kick our asses. Very entertaining. Thank you Cheli. However our shirts last year did not influence the game – at least not in our favor.

So despite a great deal of time: 48 home games last year (with preseaon and postseason), money – I don’t even want to admit how much, and a little bit of effort, what do I have to show for my investment. Nothing. But then, I watch hockey for entertainment, not a “return.”

WTF? The point is, if you’re spending a lot of time trying to arbitrage in a game you can’t control (NYSE, NASDAQ), you should expect the same result I get from my hockey, “investment.” Nothing but entertainment. If that jazzes you, go to it. But if you want to build wealth, the place to invest your time, money and effort is in things you can strongly influence. Direct investment in businesses will give you the biggest bang for your buck. Prove me wrong.

P.S. I still maintain, Detroit Sux and Phoenix Swal…. Go Stars.

While this is a "local" rant today, the concept is familiar in every locale. Neighbors don’t talk to each other. Do you know your neighbor? What color are her eyes? How does the little old lady down the street from you like her afternoon tea? This lack of neighborhood commraderie is what leads to the deviants and terrorists hiding amongst us. We are more than our worst enemy.

So today we received a notice saying that the city is considering making the south side of my block 2 hour parking. One block, one side, 6 houses wide . . . until this year, we really didn’t have a parking problem despite multiple houses under construction, living next to a school and having an apartment house one block over. This year the house two doors down is under renovation . . . by idiots.

Now I’m not one to parse with a fella about how he wants to fix his home, but when a renovation takes more than 9 months AND it still isn’t even close to complete, that means there’s been trouble. Usually the problem is poor organization coupled with imprudent planning. These folks have that and a whole lot more. It doesn’t help matters that they’ve chosen contractors who are not familiar with the peculiarities of my neighborhood. We do not park on lawns folks. Nor do we pull into driveways diagonally. We’re a neat and orderly ‘hood.

So why the rant about parking? Well the contractors make it tough to get one of the few parking spots we have. I don’t mind because my car stays put during the day, but my neighbors seem to have their panties in a wad. Why? Who knows.

The fact is, no one in the neighborhood talks to anyone else in the neighborhood. That’s the real problem. So instead of talking to the neighbors to resolve what appears to be a simple case of irritation, someone has decided it is worth getting city council involved. How much do you think that costs?

Here’s what we’re looking at based on the proposed legislation passing:

Overtime pay for staff members and facilities usage fees for the initial meeting
Ditto for the planning meeting that has already happened after office hours
Printing costs for the flyers
Plastic bags so the each flyer could be weather-resistant (seriously – despite everyone having a covered porch-area…)
Human labor to deliver said flyers to each house and vehicle
Signage design for posts
Post and signage installation (concrete, labor – 3 man crew)
Enforcement . . . this is the kicker

So about enforcement . . . we don’t have "metermaids" in the area, nor do we have any patrolling nearby. So either we have to add this one side of one block (6 houses long) to a parking enforcement officer’s daily patrol from another part of the city or we have to ADD a parking enforcement officer. Or worse still, we have to add parking enforcement duties – i.e. chalk marking tires – to a current police officer’s daily duties.

Are you seeing the dead weight cost of this proposition? I don’t know the actual total, but it strikes me that it is non-trivial. As a tax payer, I’m a bit miffed to be footing the bill for something so trivial. Don’t we have better things to do? I thought we were really concerned about growing the library last year. Can we ever have too many books?

If it is the neighbors on the south side who wish to have their views unblocked by vehicles, I wonder, do you think they’ll really prefer mowing and edging around the new signs that will be in their yards? Signs in yards do not increase property value as it turns out….

One conversation by the "injured" party whomever he or she is with the "injuring" party could probably have solved this problem months ago. But instead of acting like adults, someone is being controlled by his/her 6 year old overly self-righteous self. Or maybe someone’s just an ass.

It’s days like this that I want to chuck it all and join the circus. I’m surrounded by loonies I may as well enjoy myself.

Am I the only person who thinks avoiding conversation with neighbors is a bad idea?