Must-Read Money Stories for Tuesday, Jan 10

by January 10, 2017
The auto industry is showing off its newest ideas in Detroit this week. (Photo via Autoweek USA on flicker, CC by 2.0).

The auto industry is showing off its newest ideas in Detroit this week. (Photo via Autoweek USA on flicker, CC by 2.0).

Auto show

It’s press preview week for the North American International Auto Show in Detroit. As usual, the Detroit Free PressDetroit News and Auto News have ongoing live coverage. There are two big narratives to this year’s show. TechRepublic has an overview on the first: the rise of autonomous vehicles. And the New York Times digs into the second major narrative: How Donald Trump and his tweets have shaken up the industry.

Tax man cometh

Dow Chemical lost its final bid for a $1 billion tax write-off yesterday. Reuters reports the U.S. Supreme Court finally resolved the issue by declining to take Dow’s case. The chemical giant insisted it deserved the tax break based on partnerships it formed. But the IRS ruled those partnerships never served a business purpose; they were entered into only for tax purposes. Dow will have to pay “a 20 percent penalty for negligence and substantial understatement of taxes,” according to Reuters.

Cheap seats

States are struggling to fill legislative seats because the pay is too low, according to NPR. Only a handful of states have full-time legislatures with high pay. In 30 states, the salary for state representatives is $30,000 or less per year. It’s a challenge for states trying to balance a budget: Pay too much and it seems like a waste of taxpayer money, pay too little and only wealthy people will run for office.

Retirement returns

Stock experts are chiming in with gloomier forecasts for 2017 and beyond. The Washington Post reports if the forecasts have merit, young people in the U.S. better step up their retirement savings. The Post reports even a two percent drop in stock market performance would require millennials to double their retirement contributions to get the same amount 25 years later.

IMG_20170109_112405” by Autoweek USA on flickr, CC by 2.0.