BRIEF #7

The Foundation

Business, Innovation, and Lifestyle through the lens of The Culture.

Welcome to The Foundation newsletter.  After covering entrepreneurship, leadership, innovation, and social impact for Forbes, I’ve decided to try something new.  The Foundation is about curating unique content with a blend of business and cultural undertones that will be published weekly.

Rich Winley

Is There A Black Tax? 

Its been said that the only thing constant in this life is death and taxes.  In the tax world there’s two main things you never want to hear; you owe and that you’re getting audited. A new research paper from Stanford University suggests that black folks are getting audited more than others.

The team analyzed over 148 million tax returns and approximately 780,000 audits for the 2014 tax year, and found that Black taxpayers were 2.9 to 4.7 times more likely to be audited than non-Black taxpayers. The racial disparity persisted regardless of gender, marital status, or dependents. The largest source of disparity occurred among taxpayers who claimed the Earned Income Tax Credit (EITC), with Black taxpayers accounting for 21% of EITC claims but 43% of EITC audits.

The Breakdown:

  • Black taxpayers are audited by the IRS 2.9 to 4.7 times more often than non-Black taxpayers

  • The racial disparity in audits is driven by internal IRS algorithms that are a complete secret

  • The research team modeled alternative audit selection policies to show the IRS could reduce the disparity without sacrificing tax revenue

  • Black taxpayers were found to be disproportionately audited, regardless of gender, marital status, or dependents

  • The largest source of disparity occurred among taxpayers who claimed the Earned Income Tax Credit (EITC)

  • A single Black man with dependents who claims the EITC is nearly 20 times as likely to be audited as a non-Black jointly filing taxpayer claiming the EITC.

“The hardest thing in the world to understand is the income tax.” Albert Einstein

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The Fight To Keep Our History For The Future

Florida has been making headlines lately due to various political battles, but let’s focus on education. What’s wrong with teaching the truth?

America has seen generations of individuals who want to ignore how this country was established for success. Now, Florida wants to erase all of that history.

Here’s what’s happening:

  • Classroom books must be approved by the state.
  • If a book is considered inappropriate or banned, the teacher can face a third-degree felony.
  • Florida has banned the AP course for multiple reasons and specifically targeted the section on LGBTQ+ topics.
  • Although the AP program has offered to make changes, lawmakers are not budging.
  • Governor Desantos has appointed several conservative school board members to put pressure on superintendents to follow the guidelines.
  • The State Board of Education in Florida is appointed by the governor and lacks representation from the Black community. “It’s Making Us More Ignorant” by Daniel Golden highlights the restrictions these laws have on professors in Florida.

The first step in liquidating a people is to erase its memory. Destroy its books, its culture, its history. Then have somebody write new books, manufacture a new culture, invent a new history. Before long that nation will begin to forget what it is and what it was… The struggle of man against power is the struggle of memory against forgetting.”

 

Milan Kundera

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Is The LVMH Empire Giving Nepotism Or HBO Succession? 

Written By: Ashley Kougher

  • In 1987, Louis Vuitton and Moët Hennessy merged to form the LVMH Empire, which is now worth a staggering $408 billion dollars.
  • In 2021, the company was valued at $329 billion, making it the most valuable company in Europe.
  • LVMH controls 60 subsidiaries, managing over 75 small brands, including well-known names like Tiffany & Co., Christian Dior, Fendi, Givenchy, Marc Jacobs, Kenzo, Celine, Sephora, Princess Yachts, TAG Heuer, Bulgari, and Off-White. They offer a wide range of products including clothing, cosmetics, fashion, jewelry, perfumes, spirits, watches, and wines.

Now, you may be wondering why this matters to you. The founder of LVMH has split up roles within the company in a “Succession” style, with each of his five children running a different sector of the business. For example, his daughter Delphine will run Christian Dior Couture.

You may be asking, “What does this have to do with me?” When I think about these brands, I see my friends, colleagues, and peer group – other Black and Brown people. We have contributed to this $408 billion conglomerate! Imagine if we invested this kind of backing into Black-Owned Companies. Next month is Black History Month, and I challenge you to shop mainly from Black-Owned businesses. Let’s create our own “Succession” and our own billion-dollar companies, passing down CEO leadership roles to future generations.”

“We’re flashing what our next two generations could be out here living off of.”

 

— SeKeithia Johnson

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Something Good…

This all black swim team from Howard is showing up and showing out!

Learn more here.

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