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Kogod in the Media/August 2011

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WUSA looks to Kautter to examine President Obama’s new job plan
David Kautter, executive-in-residence and managing director of the Kogod Tax Center, offered his input to WUSA9’s 11:00 p.m. news regarding some released details of Obama’s job plan. Though the official plan will not be revealed until next week, White House reporters have suggested that it will include a cut in the payroll tax for employers, as well as several other components to spur economic growth and deter unemployment. In regards to reducing the payroll tax on employers, Kautter stated that, “It reduces the cost of hiring someone. So if right now it costs you 7.65 percent to hire someone in addition to the wages that you pay them, after a tax reduction of 2 percent, it will only cost you 5.65 percent... If you can reduce the cost, people tend to engage in more of that behavior.” Kautter provided further insight in his interview by weighing in on extending unemployment to those seeking job training. View full article and clip (8/30/11)

Professor Gerald Martin weighs in on Warren Buffet
Reuters highlighted the debate over Warren Buffet’s investment in Bank of America by incorporating information from Gerald Martin, associate professor of finance. Martin co-authored a study in 2008 of Buffet’s “superior stock picking abilities,” and was cited by Reuters as calling the investment a prime example of Buffet’s negotiating skills. He was also quoted on his support of Buffet’s move: “It’s another great investment for him [Buffet] and shows that he makes better deals than the government.” View full article (8/25/11)

Professor Kimberly Cornaggia discusses debt rating biases
Research conducted by Associate Professor Cornaggia regarding Moody’s Investors Service’s debt ratings was cited by CNN in a recent article. The study, co-authored by Cornaggia and professors at Indiana University and Rice University, examined ratings assigned over a 30 year period and found major differences in the scores assigned by Moody’s. “The fact remains that sovereigns are getting the shaft relative to corporates, and corporates are getting the shaft relative to structured products,” co-author Jess Cornaggia is cited as saying of the findings. The authors also shed light on a major inequity in ratings distribution, as they found that those parties with greater revenue received better scores, creating a conflict of interest. View full article (8/25/11)

Nakshbendi analyzes state of US economy
Executive-in-Residence Giyath Nakshbendi spoke about the US economy on Arabic TV station Alhurra Television August 9. Nakshbendi provided insight and analysis of the S&P's downgrade of the US to AA+, the impact of the debt ceiling increase on the economy, and the impact of Europe's current economic problems on the United States. (8/9/2011)

Professor Don Williamson talks corporate tax reform
The Washington Post quoted Professor Don Williamson, executive director of the Kogod Tax Center, on the upcoming corporate tax reform debate slated for Congress’s return this fall. Pass-through entities — S corporations, partnerships, and sole proprietors — make up 90 percent of all U.S. businesses and 40 percent of business revenue. While "business in America is generally conducted through partnerships and S corporations," as Williamson told the Post, they have been quiet on the tax reform debate. Read more about the corporate tax reform. View full article (8/6/2011)