Apr 12, 2017

Corporate America has long been cutting its own taxes

J. Scott Applewhite/AP

New research published this week from the National Bureau of Economic Research highlights the growing trend of businesses—large and small—organizing themselves not as traditional corporations, but as "pass-through entities," that pay personal tax rates on income.

Why it matters: The effective corporate tax rate is 27.1%, but for pass-through corporations it's 19%, well below the average effective corporate rate in OECD countries. This undermines the case for the necessity of corporate tax cuts, but it also complicates the tax reform process as pass throughs will likely take up the popular banner of small business to press for expensive cuts of their own.

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Data: Owen Zidar; Chart: Andrew Witherspoon / Axios

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Cerebus sells control of Steward Health Care back to company

Illustration: Aïda Amer/Axios

Cerberus Capital Management has agreed to sell control of community hospital group Steward Health Care back to the company, as first reported by the New York Times and confirmed by Axios.

Why it matters: This would make Steward one of the country's largest physician-owned and operated companies. It also marks the end of a 10-year ownership period for Cerberus, which was most recently marked by threats to shutter a Pennsylvania hospital in March, despite the pandemic, if the facility didn't receive state bailout funds.

Exclusive: Washington Post makes major move into local news

People entering the Washington Post building in D.C. in 2019. Photo: Eric Baradat/AFP via Getty Images

The Washington Post has signed all 30 of McClatchy's local news outlets to its Zeus Performance product, a software that gives sites better speed, ad view-ability and performance, executives tell Axios.

Why it matters: By adding more local news outlets, The Post can start to build a local news ecosystem within its tech stack.

Biden: George Floyd's last words are "a wake-up call for our nation"

Former Vice President Joe Biden meets with clergy members and community activists during a visit to Bethel AME Church in Wilmington, Del. on June 1, 2020. Photo: JIM WATSON/AFP via Getty Images

Joe Biden will call George Floyd’s dying words “a wake-up call for our nation,” and criticize President Trump’s decision to unleash tear gas on peaceful protesters outside the White House, in a civil rights speech from Philadelphia on Tuesday.

Why it matters: Biden in the address will seek to draw a sharp contrast between himself and Trump, whose first remarks addressing nationwide unrest Monday highlighted law and order, extreme demonstrations of militarized “strength” and other blustery threats.