Tuesday, February 21, 2006

Higher profits, lower costs: to what end?

The unwelcome change facing Knight Ridder Newspapers is in part the product of national tax laws that penalize all kinds of otherwise healthy industries. Two academics point to the capital gains tax for helping force companies shorten their horizons so that quarterly and even annual financial results have outsized an impact. Read Lawrence Mitchell and Geneva Overholser in Harvard University's Nieman Reports.

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