Baby Shaker Shakes Apple iTunes Model

iPhoneI have an expression that I have ruthlessly stolen from Star Trek IV: The Voyage Home, and it is,  “A double dumb-ass on you!”  Today I say that to Apple, for walking into a minefield with iTunes, and controlling what applications they allow on the iPhone and iPod Touch.  It seems that someone wrote an game called Baby Shaker, in which the idea is to cause the baby on the screen brain damage.  The game is sickening and tasteless, which I generally like, but in this case, it even turned me off.

So why is Apple in trouble?  They approved publication of the game and then after parental outrage they withdrew the approval.  Oops!  Somehow to Apple this debacle was not predictable.  Here is a lesson that many in the print media as well as the networking business already know.  If you attempt to control content at all, you take some responsibility for that content.  In no way can the iTunes store be viewed as an open market, in the same way, say as eBay.  And even eBay caves into pressure to remove some items from auction.

This is only the latest in a series of minor goofs they’ve made, the last one being the other side of this coin- they had a backlog of applications that people wanted approved for release on iTunes.  Instead of simply hiring more people they seem to have relaxed their standards.  Good news for developers, but bad news for consumers who are not careful, and bad news for Apple’s image.

The purpose of Apple’s review is nominally to ensure that an application does not interfere with the proper functioning of the consumer device.  When you have millions of these things out there, the last thing you want is to increase your support costs (such as people clogging Genius Bars) due to a poorly written application.  Of course, that’s not the only reason Apple has control.  They want a cut of the money for for-profit apps.  And indeed they would have profited from the distribution of this app, which sold for $0.99.  But if you want a piece of the action you have to work for it, and in this case Apple did not.  Even though the iPhone and iTunes largely sustained Apple’s top line growth, the company cut corners on the editorial review that they seemingly hold so dear.

Shame on Obama: “They were only following orders”

Attorney General Holder this week said that it would be unfair to prosecute members of the CIA who participated in war crimes, simply because someone in the Justice Department told them it was okay.  This is tremendously disappointing news.  President Obama and his team could have sent the message that no person is above the law, that your time will come if you break the law, and if you torture.  Instead, the message they sent was that it was okay to simply follow orders of an ideologically extreme administration.  And the administration sent the message to the rest of the world that America does not hold its own accountable.  Nothing could have undermined the president’s to mend fences with the world.

Someone once said that the worst evil is not committed by those who act, but by those who do not.  Shame on this administration for not acting.

Is getting into the gutter with Cheney a good idea?

I’ve been told never to argue with drunks, and never to kick people when they’re down.  What happens, however, when they throw the first punch, verbally or otherwise?

CNN has reported a poll that 72% of Americans disagree with Former Vice President Dick Cheney’s assertion that the Obama administration is worsening America’s security.  Whether we are improving our security is an important question, and while clearly the last administration did a dismal job at diplomacy that led to America’s isolation, why go there now?

The answer  is that Vice President Dick Cheney chose to open his mouth.  There is an unwritten rule in executive politics that you do not speak ill of either your successor or your predecessor.  The reason is obvious: it looks like sour grapes.  Cheney has vested his ego in an approach that the American people have demonstrably disagree withJoseph Biden.  It is also possible that the man whose policies were a huge source of controversy misses the limelight.  And it is certainly true that Cheney believes that his policies were the correct ones, and that the dismantling of those policies are dangerous: he’s not lying.

This leaves open the question of whether Vice President Joe Biden should engage in the same kind of dirt throwing, negative politics.  It goes back to the Vince Lombardi rule: when you get to the end zone, act like you’ve been there before.  Having exited with the lowest opinion poles in history, Cheney is not in a position to affect public opinion.  So why then engage him?

Harry Kalas: Part of my escape from the ’70s

When I grew up in New Jersey in the ’70s and into the ’80s, one of the constants in my life was my father’s love of the Philadelphia Phillies.  Throughout the Spring and Summer, we would turn the rotor Antenna toward Philly and bring in snowy Channel 17, WPHL, to watch the game and listen to Harry Kalas and Richie Ashburn.  When we were on the road we would listen to them as well, as one would provide coverage on the TV and the other on the Radio.

Part of following a sport on TV is listening to commentary.  A bad announcer can really turn off someone, whereas a good announcer can bring a new dimension to the entertainment. Everyone has their favorites, and there have been legends, like Murray Walker for Formula 1, and Howard Kosel for boxing and football.

In baseball in San Francisco we think of Lon Simmons and John Miller.  St. Louis and Chicago had Harry Caray, and in NY it was people like Ralph Keiner and Phil Rizzuto, who passed away in 2007.

Some years ago Hall-of-Famer Richie Ashburn died of heart attack in his room on the road.  Now legendary broadcaster Harry Kalas, the dean of the game caller core, as also died, after having collapsed in the Phillies’ broadcast booth.  You may also recognize his voice from This Week in the NFL, but those of us who followed the Phillies got to enjoy him at his best, when they won the NL series in ’80, and then the World Series.  We escaped from the grim ’70s, when interest rates and unemployment skyrocketed, when the Soviet Union was strong, and when Iran held Americans hostage, to listen to Ashburn and Kalas, who were low key when that was called for, and pitched when it seemed appropriate.

When an entertainer dies, we lose our escape.  Reality intrudes in a most unwelcome way, and our constants are no longer constant.  It is not just a loss for his family, but for the fans.  The bubble bursts, and we see what we are reminded of all we tried to escape, including our own mortality.

Rest in peace, Harry Kalas, and my escapes from the ’70s.

Tax Time! Here we go again!

paperworkSome time ago I wrote about the difficulties that expatriates face when we calculate our taxes.  As an American I don’t mind paying my fair share of taxes, even though I don’t live in the country, and even though America is practically the only supposedly-civilized society to tax non-resident citizens.

And as I wrote even more recently, I began the process in early March, trying to sort through this year’s paperwork.  For those keeping track, this year’s taxes look to weigh in at about 350 grams, or just over 3/4 of a pound. Here are some things we expatriates have to do:

  • Keep track of every day we spend in America for business.  This is the chunk of change the U.S. gets.  I think the idea is that someone shouldn’t live just across the border in Vancouver, for instance, and then commute to Washington.
  • Don’t just assume Turbotax will do the right thing with the standard deduction.  In fact, this isn’t just an expat thing: if you are subject to alternative minimum tax (AMT), the standard deduction is taxable, and so if you have some deductions it is sometimes better to itemize.  The change from last year is that more expatriates pay AMT this year due to America’s deflated currency.
  • Keep track of the largest sum in each foreign account for the year.  This is because the Department of Treasury wants to know if we’re laundering money (we aren’t).  This one is particularly important to manage because the government claims they can seize accounts for which information is not correctly reported.  It’s also not made easy for investment accounts, where portfolio values vary by the day.  This is a change from last year.
  • Allocate deductions between those that are related to foreign income, and those that are not.  The change from last year is that many could have used the standard deduction.
  • Properly calculate exchange rates for both income and taxes paid or accrued.  For those who have to do this, www.oanda.com has a lovely web site for this purpose.  Perhaps the most annoying thing for expatriates is that many of the fields we fill in need to be converted to dollars.  What’s more, in Europe it is not uncommon to have multiple currency accounts, making everything just a bit trickier.  This is particularly true in Switzerland where some securities are only issued in euros.

And so, the average expatriate has to fill out the following forms:

  • 1040 (no 1040a or -EZ);
  • Schedules A, B, and possibly D.
  • Four copies of Form 1116 for Foreign tax credit (general, passive) both normal and AMT;
  • Two copies of Form 2555 for Foreign Income & Housing Exclusion;
  • Form 2441 for children;
  • Form 6251 for AMT;
  • Treasury Form TD-F 90-22.1 for foreign bank accounts;
  • a plethora of explanation statements for currency conversion and allocations.

If you own a home, there’s more paperwork.  If you have other income, such as royalty income of some sort, you have more paperwork.  If you have a disability, there’s more paperwork.  If you have a home office, there’s more paperwork.

This is all for federal taxes.  Nominally many states such as California would then like you to repeat the effort.  If you have any deferred compensation from when you lived in the U.S., such as stock options, you will end up having to file state returns just to reclaim excess withholding.  Some states want you to file for merely having attended a professional convention or conference (what some people call the basketball tax).

And so you might say, “Eliot, isn’t your time worth more than doing all of this paperwork?”  No. The cost of accountants who prepare expatriate tax returns runs into the thousands of dollars for us, and ours is a relatively simple return.  Often times employers will pay for these returns.  If so, it’s a good deal for the employee.

Also, all of this does not take into account the taxes we must file in Switzerland.  Here we do use an accountant.  While my German has improved somewhat, each country has their own rules on where to fill in what column.  I will say this about Zürich: they provide free copies of tax software to anyone who has to file.