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									 7       Asian American Times                                                                                                                                                                      2010 年8月20 日 星期五

 Want to fix the economy?
                                           Reader’s Viewpoint
                                                                                                                                                                          ON ASIA
                                                                                                                                                                                 by Dan Russell
                                      By One Man’s Opinion                                                                                                                                   CHINA
                                                                                                                                                       As the death toll from the landslide in Gansu province rose above 1200, the entire
      Why do employers remain fearful                 Elimination of Income Tax                  country. The benefit of the sliding              country paused for 3 minutes in their memory last Monday. There are another 490 persons
or at least cautious about increasing           immediately places money in the hands            consumer tax scale is employment of              reported still missing. It is estimated that more than 400 million people have been affected
employment?                                     of consumers, both private and corporate.        local citizens who also will be consumers        by the devastating floods and rains this summer.
      •Consumers are not buying                 What will they do? What consumers                using their new found wealth. The U.S. is
      •Uncertainty about expenses that          always do, they will consume. Significant        still the biggest consumer economy in the                                                    KOREA
impact competition, taxes                       increased consumption will lead business         world; every country’s businesses want                North Korea has threatened to retaliate in response to the 10 days of joint war games
      •Uncertainty about current and future     to increase new hiring will occur further        to sell in the U.S. If you are a business        currently being jointly conducted by the U.S. and South Korea. Many thousands of troops
regulatory impact and direction                 increasing the number of employed who            man you have an opportunity to be more           from both countries are involved. The North is holding a South Korean fishing boat that it
      •Litigation and legal issues              will also become consumers.                      cost efficient by 1) using U.S. labor. 2) not    captured off the coast in what they claimed were their territorial waters.
      Why are consumers not buying?                   The government’s immediate cry             paying taxes and 3) reducing transportation
      •Unemployed                               of anguish about where will the money            expense for raw materials or finished goods.                                        PHILLIPINES
      •Job future in question                   come from, so they can do for or to us, can             Granted the consumer ultimately                 The Philippine government’s efforts to bring in more foreign investors and tourists
      •Credit is tight compared to earlier      be answered by creating a different tax          pays the tax, just as they currently pay         are being undermined by a growing number of attacks on foreigners in that country.
periods                                         source or method. The tax source should          corporate income tax in the price of goods,      Attacks have spread from beyond the rebel threatened areas all the way to Manila and
      Income Tax, think about it, the           be developed to increase business and            but they have the choice to buy locally or       its concentration of tourists and journalists. Last month a U.S. expatriate and his family
harder you work the more you pay. Does          employment locally; the tax should only          internationally. Price competition, another      was attacked in their car shortly after they left Manila’s airport. They were then held for a
that sound intelligent? Is it a Reward or       be applied on imported good or services.         form of voting each time they purchase.          time at gunpoint and their car was stolen. This rising level of violence against foreigners
punishment? Politicians, government             You create a multi-tiered tax system that               Axing Income Tax eliminates a             has diminished the Philippine’s image as a friendly destination for tourists and foreign
employees and those that don’t pay much         rewards businesses with lower cost than          quagmire of conflicting law, unfettered          investors. Despite Thailand’s recent riots and turmoil, it still remains a more popular
income tax generally think it is a wonderful    external competitors. As an example, use         regulation, massive expensive government         destination for world travelers and Bangkok is widely considered safer than Manila.
idea to redistribute wealth through public      a 0-3 scale, 0 being no tax, 3 being the         enforcement, business get to also reduce
hands. After all, let someone else pay.         highest tax. The import product tax could        their accounting, legal and other expense                                             MYANMAR
Why would a business or individual want         be applied as follows:                           incurred shielding them selves from the                 Myanmar, the country formerly known as Burma, has set the date for its first general
to risk and expend energy creating more               ‘0’ for Product built in country using     nightmare called IRS.                            elections in 20 years. It will be held on November 7th. It is still involved the world’s most
jobs just to be hit with a higher tax bill?     local employees and owned by local                      Tax collection on imports requires        protracted civil war. The European Union has stated it is skeptical there will be free and
                                                citizens.                                        much less set-up since many of the               fair elections. After the last such election in 1990, the winning party’s leader was placed
      Does anyone really want to fix the              ‘1’ for Product built in country using     elements needed are already in place.            under house arrest for 15 years.
                                                local employees, foreign ownership.              Pumping money and control back to the
U.S. and World economy? If so then the
simple task requires simple steps:                    ‘2’ for Product built in foreign country   people will do more to fix the economy                                                    TAIWAN
      1.End Income Tax completely for           using foreign employees, foreign ownership       than the ‘paint balls’ traditionally fired in          Universities in Taiwan are taking advantage of a loophole in laws that limit the
individuals and business                              ‘3’ for Product built in foreign country   stimulus or other gimmicks, or maybe they        annual enrollment of mainland Chinese students on Taiwan proper. Although that law
      2.Create a multi level import product     using foreign employees, U.S ownership           can be called dried out paper wads.              restricts that number to 2,000, they have begun offering scholarships and tuition waivers
Tax charged on goods or materials                     The highest tax is charged to                                                               to many times that number on the Taiwan controlled island of Kinmen (Quemoy). More
produced out side the borders of a              discourage our own citizens from turning         Express your View Point by submitting            than 20 Taiwanese universities intend to set up branches on the island and circumvent the
respective economy.                             against local employment and our own             your articles to       restrictions. The island is only 10 kilometers off the Chinese mainland. For many Chinese
                                                                                                                                                  students, they offer the only opportunity for a higher education because of the great
                                                                                                                                                  numbers competing for the limited spaces in mainland Chinese Universities.

Why & How I fell In Love With Asia                                                                                                                                                                   as disadvantages but the bottom line is a
                                                                                                                                                                                                     couple is joined and a new family unit is
           Part 8 (My Chinese Wedding)                                                     By Mel Berman                                                                                             born and that is what a wedding is all about.
                                                                                                                                                                                                           Both Wedding Banquets were a
Mr. Berman was born and raised and lived in Chicago and moved to Indianapolis 18 years ago. Before his retirement last                                                                               success and shortly thereafter we returned
                                                                                                                                                                                                     to Indianapolis to our home in Meridian
year, he was an entrepreneur sourcing for U.S. companies in China, Taiwan and Hong Kong. He had made over 50 trips to
                                                                                                                                                                                                     Kessler as at that time I was still actively
those localities and traveled extensively through China. He and his lovely wife Jane, a Hong Kong native currently reside in                                                                         engaged in my business. Jane easily
Carmel, IN. AAT readers will travel with him through his journey in his business dealings with China to taking a graduate                                                                            adapted to life in America and she was
course in Asian Studies and his marriage to Jane resulting in his further exposure to Chinese culture and travel in Asia.                                                                            actively engaged with me in business
      After my column No. 5 I digressed in              I will comment at this time that there   elaborate setting. At those wedding studios                                                         totaling taking over running the office we
the next 2 columns and talked somewhat           are marked differences I noticed between        the bride goes through at least 2 different                                                         had in our house and organizing the huge
about some of the differences in lifestyles      wedding practices in China & Hong Kong          make-up sessions and is photographed in          a Chinese wedding at least as I observed           volume of paper files that come from all
between my American style life and               from those in the States. The first of course   at least 2 different wedding gowns and           the gifts to the couple are either in the form     the documents required for international
the Asian living styles I then began to          is in the States the bride’s parents usually    hair do’s. The cost of the gowns is part         of cash or some type of gold jewelry such          shipments. I confess I was not very good
experience after my marriage to my wife          pick up the costs of the wedding where in       of the fee the wedding studio charges for        as bracelets, earrings or necklaces given          at that end of the business. She traveled
Jane.                                            Hong Kong & China it is the responsibility      the whole package which also includes a          to the bride. In the U.S. other than cash          with me anywhere I went to see customers
      Let me now go back to continue             of the groom. Also in the States all the        beautiful framed color photo of the bride        is usually something the bride and groom           as well, of course to regular trips back to
where I originally left with our wedding in      attendees to the wedding ceremony are the       and groom as well as all the other photos in     registered for in a bridal registry and            Hong Kong, Taiwan and China.
the summer of 2002.                              people also asked to the reception after the    a wedding book.                                  could be housewares, linens, tableware,                  In my next column I will give details
      We had a small wedding here which          marriage ceremony and the wedding dinner               At a Chinese wedding banquet,             decorative accessories, etc.                       on some of the trips I have made with Jane
took place in the Apple Orchard at the           whereas the wedding ceremony in Asia is         there is a very precise amount of courses              I really have no opinion as to               in China and contrast them with travel in
Indianapolis Museum of Art                       usually only attended by the immediate          offered as well as a precise amount of           which style is more favorable. They                the U.S.
      There were about 35 people there           families of the bride and groom. At a U.S.      fish, fowl and meat dishes all beautifully       both have merit and advantages as well
divided between Chinese friends Jane had         wedding, a photographer photographs             served and portioned out by the wait staff.
in America and my immediate family and           everything, the ceremony, the reception,
some friends. We then followed through
returning to Asia to have a wedding
                                                 the dinner and dancing afterward whereas
                                                 at a Hong Kong Chinese wedding the bride
                                                                                                 A wedding dinner in the U.S. is almost
                                                                                                 always followed by dancing either to a
                                                                                                 live band or recorded music whereas at my
                                                                                                                                                                Asian American Times
banquet in Guangzhou for Jane’s parents,         and groom generally go to a wedding studio
                                                                                                 own wedding and others I have attended in
family and friends and then another              often long before the wedding where photos                                                       Name / organization: _____________________________
                                                                                                 Hong Kong the attendees went home after
wedding banquet in Hong Kong for more            of them are taken by a professional in a        the dinner was completed.                        Mailing Address:            ________________________________
family and friends.                              variety of carefully posed photos in a very            Another big difference is in gifts. At    First issue start-date: _____________________________
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                   Nathan Weddle, Financial Advisor                                                                                                                           Thank you for your support.
                                                                                                                                                goals, risk tolerance and         choice: Do you want growth in the value of your
                        Morgan Keegan & Company, Inc.                                                                                           time horizon. This process is
                                                                                                                                                called asset allocation.
                                                                                                                                                                                  original investment over time, or is your goal to produce
                                                                                                                                                                                  predictable, spendable current income--or a little of both?
Question: Understanding Investment Terms and                    investment.                                                                            Within each class you            Consistent with this investor choice, investments are
Concepts                                                              If you buy bonds, you’re lending money to the          choose, consider diversifying further among          frequently classified or marketed as either growth or income
Answer: Below are summaries of some basic principles            company (or governmental body) that issued the bonds.        several individual investment options within         oriented. U.S. Treasury bills, for example, provide regular
you should understand when evaluating an investment             You become a creditor, not an owner, of the bond issuer.     that class. For example, if you’ve decided to        interest payments, but the value of your original investment
opportunity or making an investment decision. Rest              The bond is in effect the issuer’s IOU. You can lose the     invest in the drug industry but are concerned        will typically be more stable than an investment in, for
assured, this is not rocket science. In fact, you’ll see        amount of the loan (your investment) if the company or       about putting your entire investment into            example, a new software company, which will typically
that the most important principle on which to base your         governmental body fails, but the risk of loss to creditors   a single company, you could make smaller             produce no immediate income. New companies generally
investment education is simply good common sense.               (bondholders) is generally less than the risk for owners     investments in Company A, Company B,                 reinvest any income in the business to make it grow.
You’ve decided to start investing. If you’ve had little or      (shareholders). This is because, to stay in business         and Company C, rather than put all your              However, if a company is successful, the value of your
no experience, you’re probably apprehensive about how           and continue to finance its growth, a company must           chips on one of them. Diversification alone          stake in the company should likewise grow over time; this
to begin. Even after you’ve found a trusted financial           maintain as good a credit rating as possible, so creditors   can’t guarantee a profit or ensure against the       is known as capital appreciation.
advisor, it’s wise to educate yourself, so you can evaluate     will usually pay on time if there is any way at all to do    possibility of loss, but it can help you manage            There is no right or wrong answer to the “growth or
his or her advice and ask good questions. The better you        so. In addition, the law favors a company’s bondholders      the types and level of risk you take.                income” question. Your decision should depend on your
understand the advice you get, the more comfortable you         over its shareholders if it goes bankrupt.                                                                        individual circumstances and needs (for example, your
will be with the course you’ve chosen.                                Stocks are often referred to as equity investments,           Recognize the tradeoff between an             need, if any, for income today, or your need to accumulate a
                                                                while bonds are considered debt instruments or income        investment’s risk and return                         college fund you don’t plan to tap for 15 years). Also, each
Don’t be intimidated by jargon                                  investments. A mutual fund may invest in stocks, bonds,             For present purposes, we define risk as       type may have its own role to play in your portfolio, for
                                                                or a combination.                                            the possibility that you might lose money,           different reasons.
       Don’t worry if you can’t understand the experts in             Note: Before investing in a mutual fund, carefully     or that your investments will produce lower                Understand the power of compounding on your
the financial media right away. Much of what they say           consider its investment objectives, risks, fees, and         returns than expected. Return, of course, is         investment returns
is jargon that is actually less complicated than it sounds.     expenses, which can be found in the prospectus               your reward for making the investment. Return              Compounding occurs when you “let your money
Don’t hesitate to ask questions; when it comes to your          available from the fund. Read it carefully before            can be measured by an increase in the value          ride.” When you reinvest your investment returns, you
money, the only dumb question is the one you don’t ask.         investing.                                                   of your initial investment principal, by cash        begin to earn a “return on the returns.”
Don’t wait to invest until you feel you know everything.                                                                     payments directly to you during the life of the            A simple example of compounding occurs with a
       IRAs hold investments--they aren’t investments                  Don’t put all your eggs in one basket                 investment, or by a combination of the two.          bank certificate of deposit that is allowed to roll over and
themselves                                                             This is one of the most important of all investment          There is a direct relationship between        be reinvested each time it matures. Interest earned in one
       Let’s address a source of confusion that immediately     principles, as well as the most familiar and sensible.       investment risk and return; the lowest-risk          period becomes part of the investment itself during the
throws many new investors off: If you have an individual               Consider including several different types of         investments typically offer the lowest return        next period, and earns interest in subsequent periods. In the
retirement account (IRA), a 401(k), or other retirement         investments in your portfolio. Examples of investment        at any given time (e.g., a federally guaranteed      early years of an investment, the benefit of compounding on
plan at work, you should recognize the difference between       types (sometimes called asset classes) include stocks,       bank certificate of deposit). The highest-risk       overall return is not exciting. As the years go by, however,
that account or plan, and the actual investments you own        bonds, commodities, art, and precious metals. Cash           investments will generally offer the chance for      a “rolling snowball” effect kicks in, and compounding’s
within that account or plan. Your IRA or 401(k) is really       also is considered an asset class, and includes not only     the highest returns (e.g., stock in an Internet      long-term boost to the value of your investment becomes
just a container that holds investments and has special         currency but cash alternatives such as money market          start-up company that may go from $12 per            dramatic.
tax advantages. Some investments are best held in a tax-        instruments, (for example, very short-term loans).           share to $150, then down to $3). A higher
advantaged account; others may be more appropriate for a        Individual asset classes are often further broken down       return is your potential reward for taking                 To submit a question for this column, visit www.
taxable account.                                                according to more precise investment characteristics         greater risk.                               and complete the online
                                                                (e.g., stocks of small companies, stocks of large                   Between the extremes, every investor          form.
Understand stocks and bonds                                     companies, bonds issued by cities, or bonds issued by        searches to find a level of risk--and                        This information is for illustrative and discussion purposes
      Almost every portfolio contains one or both of these      the U.S. Treasury).                                          corresponding expected return--that he or            only. Morgan Keegan does not provide legal or tax advice.
kinds of assets.                                                       Investment classes often rise and fall at different   she feels comfortable with. When someone             You need to contact your legal and tax advisors for additional
                                                                                                                             proposes an investment with a high return and        information and advice before making any investment decisions.
      If you buy stock in a company, you are literally          rates and times. Ideally, in a diversified portfolio of                                                           Morgan Keegan & Company, Inc. Member FINRA, SIPC.
buying a share of the company’s earnings. You become            investments, if some are losing value during a particular    suggests that it’s risk-free, remember the old
                                                                                                                                                                                  Securities and insurance products are not FDIC insured, not a
an owner, or shareholder, of the company. As such, you          period, others will be gaining value at the same time.       adage that “If something sounds too good to be       deposit, not an obligation of or guaranteed by Regions Bank, it
take a stake in the company’s future; you are said to have      The gainers may help offset the losers, which can            true, it probably is.”                               affiliates, or any government agency and may lose value.
equity in the company. If the company prospers, there’s         help minimize the impact of loss from a single type                 Understand the difference between                     This advertisement was prepared for Nathan Weddle using
no limit to how much your share can increase in value.          of investment. The goal is to find the right balance of      investing for growth and investing for income        material by Forefield, Inc. Prepared by Forefield, Inc. Copyright
If the company fails, you can lose every dollar of your         different assets for your portfolio given your investing            As an investor, you face an immediate         2010.

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