A Path Toward Public-Private Understanding Aspen Institute Business Education Symposium Mary Margaret Frank October 17, 2014 In the beginning: Tug of War Public Private Taxes Partnership Partnership with Corporations Opening Class: Is Anything Tax-free? WEALTH AND LOOPHOLES Average federal income tax rate Teresa Heinz Kerry, % All Taxpayers, Top 1%, Top 10%, Top 25%, Top 50%, Sources: Kerry campaign, Tax Foundation. 10 Year AAA Corporate bond = 2.74% 10 year AAA Municipal Bond = 1.78% Her tax rate on interest = 40% Allocation of Returns on Bonds 1.78% (based on 35% tax rate) 2.74% 1.32% (based on 52% tax rate) Take-A-Ways More than the explicit taxes paid to government Consider market pricing More than a two-party tug-of-war Consider others More than quantitative modeling Consider qualitative aspects Are Shareholders Always the Winner? You are offered a deferred compensation arrangement instead of salary. Do you take it? If so, how much do you demand? Will your employer be willing to pay? NO ZOPA $1.37 Corporate employer Middle level employee $1.38 $1.50 Lowest level employee ZOPA! $1.27 Highest level employee $0 Tax-exempt employer $1.61 Are shareholders always the winner? PPPs: Fighting HIV in the United States Cross-disciplinary students Business, law, public health, nursing Cross-disciplinary faculty Student-led discussions related to expertise Team-based research Practical outcome External partner: Global Business Coalition on HIV/AIDs, Tuberculosis and Malaria Globalization Great Recession Political Impasse Government Debt COMPLEXITY The National Debt Seminar Cross-disciplinary students Business, Law, Public Health, Nursing, Engineering and Public Policy Cross-disciplinary faculty Economics, Politics, Public Policy, Law, Public Health, Medicine Team-based research Student-led discussions Student-led final team project Practical outcome External partners: Jefferson Trust, Pallidin Media, Social Media,