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Kogod in the Media/April 2011

 

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The latest headlines from the Kogod School of Business.

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Faculty, Programs, & Quotes

Cooperation as a key to success
A recent article on JustMeans argued that cooperation between corporations and cultures is the key to free market capitalism. Kogod professor of international business Jennifer Oetzel's views on corporate social responsibility in conflict zones such as Egypt were cited in the article. Oetzel said that when businesses partner together to create employment and job training, they can help a post-conflict society become more viable. She also argued that cross-cultural collaborations between American and Egyptian firms may help reduce Arab distrust of the United States. View Full Article (4/30/11)

Corporate tax reform could hurt small business
A recent study concluded that corporate tax reform may hurt small businesses, unless individual income taxes are also reformed. President Obama has called for reducing the corporate tax rate and doing away with various tax breaks currently given to corporations. According to the Kogod Tax Center, Congress should eliminate business deductions, credits, and preferences, and apply a reduced business rate uniformly to all business. View Full Article (4/29/11)

Tax Center director discusses how area retirees can save on future taxes
The Richmond Times-Dispatch recently published an article on five ways for retirees to save on future taxes. One effective way to save money is to move to more tax-friendly state, the article said. The District of Columbia and 14 other states have their own estate tax, which apply even if an estate isn't large enough to owe money under federal estate taxes. According to Donald Williamson, the executive director of the Kogod Tax Center, it's not uncommon for retirees in DC or Maryland to move to Virginia because the state does not have an estate tax. View Full Article (4/25/11)

Tax Center says Congress should 'level the playing field'

The Phoenix Business Journal published an article on a recent study that found that corporate tax reform could hurt many small businesses unless individual income tax rates are also reduced.

The Kogod Tax Center proposes that Congress eliminate business tax breaks, but apply the reduced corporate tax rate to all small businesses, the article said. This would “level the playing field for corporations and unincorporated businesses -- without forcing Congress to deal with the massive task of individual income tax reform,” said David Kautter, managing director of the Kogod Tax Center. View Full Article (4/22/11)

Dean Durand says business majors are "broadly educated"
Bloomberg Business Week recently published a column discussing The New York Times' and The Chronicle of Higher Education's  takedown of the undergraduate business major. According to the two publications, students in other majors report spending more time on coursework outside the classroom. In response, Kogod Dean Richard Durand made a compelling argument in the New York Times that business schools make sure their students are broadly educated. 

"A business education is very demanding," he wrote. "Business students could very well be the most broadly educated students at a university." View Full Article (4/20/11)

AU announces new Kogod dean
American University put out a news release announcing the appointment of Michael Ginzberg as the new dean of the Kogod School of Business on April 20. Ginzberg will join Kogod in June, following Dean Richard Durand's retirement. 

Ginzberg is the current dean of the business school at Yeshiva University, where he developed and implemented a strategic plan that transformed the school's size, structure, and reputation.

“Kogod is an outstanding school poised for further growth,” said Ginzberg. “I am impressed by the caliber of the faculty. Their dedication to research and teaching reflects my own personal passion for student and academic advancement.” View Full Article (4/20/11)

Buffett 'copycats' do well in theory, according to professor's research
Warren Buffett may be the most studied and emulated investor there is, said a recent article from MSNBC on Buffett 'copycats.' The article cited a joint study by Kogod Professor Gerald Martin and John Puthenpurackal from the University of Nevada titled "Imitation is the Sincerest Form of Flattery: Warren Buffett and Berkshire Hathaway." According to the article, Martin's research found that despite the delay between the time when Buffett would have made an investment and the time a copycat investor would do the same, investors could earn statistically high annual returns if they purchased the same stocks as Buffett. View Full Article (4/20/11)

Tax Center's Kautter talks tax expenditures
David Kautter, the managing director of the new Kogod Tax Center, recently spoke with a correspondent from Governing magazine, a national monthly print and online publication for innovative leaders in state and local governments. Kautter discussed tax expenditures, a hot topic of late as federal debates center around whether to eliminate some tax expenditures, such as mortgage interest deduction or the earned income tax credit. 

Tax credits, Kautter said, come in various forms. Some encourage certain behavior, some are subsidies, and some are a hybrid of the two. Kautter also addressed simplifying the tax code; " The IRS code has become a labyrinth of intricate and overlapping rules. Even when you think you're complying, you're not. It's demoralizing; it discourages people from complying. It leads to taxpayer disillusionment, where they think they're being treated unfairly. So, simplifying the law has two aspects to it: Compliance becomes easier and goes up, and enforcement becomes easier because there are fewer places to hide income."

Advantages to eliminating tax expenditures, Kautter said, are that it will encourage market-based decision-making and would increase revenue and accountability. View Full Article (4/20/11)

BP, US authorities may opt for single settlement over oil spill
Last year's oil spill has already cost BP over $40 billion, but legal and financial experts predict it will end up costing much more, according to a recent article in the Financial Times. 

Kogod Professor Dan Jacobs said that there is precedent and incentive for BP to seek a single settlement deal for fines, damages, and other penalties against the company. 

“The Texas City settlement was incorporated into one of the most remarkable package deals that I have ever seen. Multiple violations under different statutes, civil and criminal penalties were all settled in one package. My suspicion is that there is talk behind the scenes to reach a similar global settlement for the gulf disaster," Jacobs told the Financial Times. 

According to the article, even if BP reaches a deal with US authorities, it will most likely still face claims from businesses and individuals. Additionally, BP says its partner companies are liable for costs associated with the spill, and recently filed suits against those companies seeking up to the full cost of the disaster. View Full Article (4/19/11)

Jacobs discusses AEP v. Connecticut on POTUS
Professor Dan Jacobs, the newly appointed director of Kogod's new Masters of in Sustainability Management was recently featured on POTUS, the Sirius SM political news channel, explaining the issues in the Supreme Court case, American Electric Power v. Connecticut. The case, which pits major power companies against state government, could be highly influential for climate change legislation, and depending on the court's decision, could impact greenhouse gas emissions and how power companies do business. The newly-launched MSSM program recently hosted a panel discussion with experts on the case. Listen to clip (4/19/11)

Dean Durand defends business undergrads in NYT
Dean Durand recently contributed to the New York Times Room for Debate column on whether or not an undergraduate business degree is worth having. Dean Durand argued on behalf of business students, writing that Kogod's curriculum, combined with university general education requirements, make for well-rounded students with practical skills that will give them a leg up when it job-hunting. Kogod students also develop professional skills such as leadership, teamwork, networking and ethical decision-making.

"These skills are critical in the workplace and important in life, and developing them requires the ability to bridge theory and practice. We provide students with many avenues to do so, including opportunities to manage an investment fund and consulting on projects for real organizations. With a core foundation in the liberal arts, plus training and activities, business students start their careers with a significant advantage," Dean Durand wrote. View Full Article (4/17/11)

Professor gives tax tips
Don Williamson, a Kogod professor in the department of accounting and taxation as well as the director of the M.S. in Taxation, recently appeared on NewsChannel 8 discussing last minute tax tips. (4/15/11)

Dan Jacobs appointed director of MSSM
Dan Jacobs' appointment as the director of Kogod's new Master of Science in Sustainability Management was recently published the Washington Post's Capital Business section. Jacobs, a former trial attorney at the Justice Department, has worked to advance sustainability in his legal and teaching careers. The program will begin in the fall of 2012. View Full Article (4/15/11)

Bonnie Auslander, Director of Center for Business Communication, featured on Interfaith Voices
Bonnie Auslander recently shared the story of her first Passover seder, and how she became more comfortable with hosting the service, on Interfaith Voices, a leading public radio news magazine on religion. Auslander has previously had radio commentaries featured on WAMU's Metro Connection news magazine, and on Living on Earth, a weekly environmental news program that airs in nine of the top 10 radio markets. As Director of the Center for Business Communications, Auslander works with students to help them become better writers, speakers, thinkers, and readers. Listen to show (4/14/11)

Kogod's MSRE 'fast-tracks' real estate careers
The Northwest Current recently published an article highlighting Kogod's Master of Science in Real Estate program. Dawn Eisenberg, the director of the program, said that many students in the MSRE program enrolled after being in the workforce for a few years because they wanted to take their careers to the next level.

To do that, Eisenberg said, the program often brings in industry professionals for networking opportunities, and has students analyze real-world real estate issues. "What we've done is change our curriculum to reflect the changes in the industry," Eisenberg said. View Full Article (4/13/11)

Kogod Tax Center says tax reform could hurt small business
The new Kogod Tax Center recently cautioned that the push for corporate tax reform on Capitol Hill could have unintended effects on small business.

"If corporate tax reform moves forward in this way, small businesses will end up with an increased tax burden," said David J. Kautter, managing director of the Kogod Tax Center. "That makes little sense if we are interested in growing jobs and enhancing the competitiveness of our economy."

The center is urging policymakers to consider a different proposal -- one that ensures small business owners receive needed tax relief. The Kogod Tax Center's solution calls for Congress to eliminate business deductions, credits, and preferences, and apply a reduced business rate uniformly to all business.

This approach could "level the playing field for corporations and unincorporated businesses—without forcing Congress to deal with the massive task of individual tax reform," said Kautter. View Full Article (4/13/11)

Kogod professor says Dukes v Wal-Mart outcomes could be far-reaching
The Daily Herald recently published an article on the recent Wal-Mart sex discrimination Supreme Court case. The plaintiffs in the case, Dukes v Wal-Mart Stores, Inc., argue that Wal-Mart is guilty of paying women less than men and overlooking them for advancement.

Kogod professor Caren Goldberg, an expert on sex discrimination in the workplace, said that the outcome of the case could have far-reaching implications.

"While the case involves sex discrimination, it would not be hard to imagine other organizations facing similar issues with regard to other protected groups... a ruling for the plaintiffs could put big business on notice," Goldberg said. "Other large organizations would have a reason to be nervous that every multi-plaintiff case might evolve into a multi-million plaintiff case." View Full Article (4/7/11)

DC Cupcakes and Girl Scouts at AU
American University was recently featured in an episode of 'DC Cupcakes.' The episode centered on the Girl Scout event 'Cookie College,' which took place on the AU campus. Kogod helped bring the event, which helps girls on their way to becoming successful businesswomen, to AU. View a clip of the episode (April 2011)