Colorado’s Equal Pay for Equal Work Act — a set of laws aimed at ending wage discrimination, especially for women and minorities — went into effect earlier this year.
But instead of adhering to the legislation, some companies have decided to exclude Colorado-based remote employees in job listings.
The act specifies that employers hiring in Colorado must include an expected salary range and benefits in job posts. Some reports claim that companies don’t want to reveal their cards.
Even if these rules are a good idea, they demand new systems and processes for any business hiring in Colorado. Many are balking, so it’s looking like a “cobra effect” law: when a well-intentioned rule backfires.
Let’s say you run a tennis ball company in California that rakes in $100m/year in net income.
In California, you’ll pay a state income tax (8.84% of net income) — and possibly an alternative minimum tax (6.65%) — in addition to the federal corporate tax rate of 21%.
By incorporating in Delaware, though, you can likely save millions in taxes with something called the “Delaware loophole.”
In Delaware, intangible assets — think trademarks, copyrights, and leases — are free from taxation. Companies will often transfer these assets to a Delaware subsidiary and pay their own subsidiary for the rights to use said assets.
$GME was first pitched as an investment on r/WallStreetBets about 2 years ago, but the current craze built up over the past 12 months.
Members on the subreddit r/WallStreetBets believed that GameStop, with 5k+ brick ‘n’ mortar locations, could turn around its fortunes by going digital.
On Aug. 31, 2020, Ryan Cohen — the billionaire founder of pet company Chewy — bought up a big position in $GME (he now owns 10%+ of it) with plans to modernize the company.
In the months since, a number of prominent hedge funds (Citron, Melvin Capital) revealed they were betting against (AKA short selling) $GME.
Typically in short selling, you: 1) borrow a stock; 2) sell it to a buyer; and 3) if the price of the stock falls, you can buy it for a cheaper price you sold it at and return the stock to the person who lent it to you.
One risk of short selling is called a “short squeeze.” Since you have to eventually return the stock you borrowed, problems can arise if there is a limited supply of the stock.
In a “short squeeze,” the underlying stock will get bid up as short sellers try to get their hands on stock that they have to return.
Options trading — the right, but not obligation, to buy a stock at a certain price — is also driving $GME up as institutions that sell these options are buying $GME stock to hedge their position.
$GME stock is on an upward tear as these market mechanics play out and r/WallStreetBets traders coordinate their efforts.