亞太 商報
Asian Pacific Business Journal
2020 June Issue Issue Number 0129 1548 W. Alameda Avenue, Suite D, Denver, CO 80223| Tel: 303-733-8888, 303-722-8268, Fax: 303-722-7861| cochnews@gmail.com
Trouncing Expectations by 10 Million Jobs, the Labor Market’s Comeback Has Begun
The Bureau of Labor Statistics’ May Employment Situation report shows that the United States economy added 2.5 million jobs last month, and the unemployment rate fell from 14.7 percent to 13.3 percent. Employment increased significantly in leisure and hospitality (1.2 million), construction (464,000), education and health services (424,000), retail trade (368,000), and manufacturing (225,000). These job gains surprised forecasters, given many States were only beginning to reopen their economies during the reports’ survey reference periods (the week/ pay period that includes May 12). The median of all private sector forecasts predicted 7.5 million job losses in May and an unemployment rate of 19.2 percent. Rapid job growth as the coronavirus is contained and States open up should not come as a surprise. A poll conducted from April 27 through May 4 asked laid-off workers if they expected to be rehired by their most recent employers after State stay-at-home orders are lifted. The vast majority of laid-off workers (77 percent) said it was likely that they would be rehired by their most recent employers. This survey result is echoed in May’s employment data, just as CEA explained it was in April’s data. There were 15.3 million people on temporary layoff in May, in addition to an estimated 4.9 million people who had temporarily lost their jobs but were counted as employed but “not at work for other reasons.” Including all those who were potentially on temporary layoff, 78.2 percent of unemployed persons in May were on temporary layoff—well above the 13.3 percent average over the 12 months before this March. Beyond workers remaining attached to their employers, another sign that job growth will continue is May’s jump in average weekly hours—indicating pent-up demand. Increasing hours can be a sign that employers need to hire more workers to meet this demand. For all private sector employees, average weekly hours increased by 0.5 to 34.7 hours—the highest level since the series began in 2006. For production and non-supervisory employees, this measure increased by 0.6 to 34.1 hours—the highest level in 19 years.
Further job losses were expected in the May report because initial Unemployment Insurance (UI) claims, though falling, remain elevated. Yesterday, the Department of Labor reported that 1.9 million people filed initial UI claims in the week ending May 30. Even with 4.6 million initial claims over the two weeks ending May 23, the number of people receiving UI, as measured by continuing claims, declined by 3.4 million over that time. As the figure below shows, weekly continuing claims have tracked the number of unemployed persons reported in the monthly Employment Situation report, assuming a constant rate of change between the months.
By May 23, the gap between weekly continuing claims and cumulative initial UI claims since the beginning of COVID-related job losses had grown to 19.6 million. Some of this difference may be accounted for by individuals applying for traditional UI instead of the new Pandemic Unemployment Assistance program, either by mistake or because of State requirements. However, the widening gap between initial UI claims and continuing claims, along with the 2.5 million jobs added in May, show
that laid off Americans are returning to work. For workers to count as unemployed, they must have searched for work during the last four weeks or be on temporary layoff. If neither of these apply, the worker is counted as out of the labor force. States waived the traditional work search requirement for UI, so some workers on UI who do not expect to be called back to work may not count as unemployed. Yet the labor market flows for May show that there was not an elevated level of workers dropping out of the labor force directly. Flows from employment to not in the labor force were 4.4 million from April to May, in line with the average over the 12 months before this March (4.7 million). Furthermore, from April to May, 2.8 million more people moved from unemployment to employment than moved from employment to unemployment. Other, more rapid indicators of labor market strength show the economic recovery has accelerated since mid-May. Gasoline demand has recovered over half of the loss from its pandemic-low, indicating Americans are driving more. Workplace visits are up more than 40 percent from its pandemic-low. And, as the figure below shows, 73 percent of small businesses are now open—up from its pandemic-low of 52 percent right before the April report’s reference periods.
While May’s jobs report is unquestionably positive news for America’s economic comeback, there is still much more room to grow. Three months ago in February, the unemployment rate was 9.8 percentage points lower (3.5 percent) and there were 19.6 million more jobs. But the economy beating expectations by 10 million jobs and the unemployment rate falling instead of rising show that the transition back to strong economic growth began earlier than many expected. With more States easing restrictions on work, strong attachments between laid off workers and their employers, and growing labor demand, there is much reason to expect the American economy to add even more jobs in June. (From White House)
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Ronna McDaniel, ‘Pres. Trump Continues to Fight for the Asian American Community’
Ronna McDaniel is chair of the Republican National Committee. Follow her on Twitter @GOPChairwoman.
In my hometown in Michigan, I have seen our community rally to do all we can to support our neighbors and local businesses during this difficult time. All Americans are grateful for our Asian Pacific American neighbors and friends, especially the doctors, nurses, and medical professionals for their selfless service and sacrifices to combat the virus on the frontlines. Thanks to President Donald Trump, more help is on the way for Asian American owned small businesses. From the start of this pandemic, the President’s first priority has always been the health and well-being of Americans, especially our most vulnerable. While he and his team are working to mitigate the spread of the coronavirus, he is also working to ensure that our economy can bounce back afterwards. Prior to the COVID-19 pandemic, we saw record low unemployment in the Asian American community. Many Asian American entrepreneurs contributed to what was one of the best economies we had ever seen in America. But in a matter of just a few weeks, small businesses that were bustling with activity have now gone empty, as they play their part in slowing the spread of this disease. There is a lifeline for the millions of Asian American small business owners called the Paycheck Protection Program. This amazing program is a product of the bipartisan relief package that President Trump signed into law, providing $350 billion of liquidity in the form of forgivable loans to small businesses all across America and, because the program has already been so successful, at President Trump’s urging, Congress just allocated an additional $310 billion for the program. A portion of the bill will assist small businesses that do not have relationships with approved banks and have a harder time accessing funds. Small business owners may apply for up to eight weeks of cash-flow assistance at their local bank or at any one of the Small Business Administration’s approved lenders. As long as the loans go toward things like maintaining all employees’ salaries and keeping the lights on and doors open, they will be forgiven in full; so essentially this is a grant. For Asian American small business owners there is guaranteed cash with nostrings-attached waiting for you, but you must apply. If small businesses can keep their employees on payroll, it will be easier for them to get back up and running, once the economy reopens, putting our country in the strongest possible economic position. Small businesses can find details and more, as well as apply, at sba.gov/ppp. Thanks to President Trump’s leadership, small businesses are going to weather this storm and they, along with our entire economy, will recover and come roaring back stronger than ever before.
2020 June Issue
Biden’s head-turning comments on Asians resurface amid former VP’s attacks on Trump ‘xenophobia’
Fox News Gregg Re May 29, 2020 “Republicans are highlighting Joe Biden’s past head-turning comments concerning Asian Americans after the former vice president co-authored an op-ed this week accusing President Trump of “needlessly” and “cruelly” scapegoating foreigners during the coronavirus pandemic. “For the GOP, the op-ed was an opportunity to remind voters of Biden’s own questionable remarks, as well as the president’s policies affecting the Asian American community, to close out Asian American and Pacific Islander Heritage Month. “Joe Biden has disregarded and ridiculed the Asian Pacific American community while President Trump and Republicans continue to champion Asian Pacific Americans, build meaningful relationships, and honor their heritage, sacrifices, and accomplishments,’ Republican National Committee (RNC) Asian Pacific Americans (APA) media director Marina Tse told Fox News. “Biden publicly claimed during a campaign stop in 2019, for example, that “xenophobia” keeps Japanese women employed. “And the Washington Post reported in 2014 that Biden flubbed a story about his meeting with former Singapore prime minister Lee Kuan Yew, just hours after he walked back his decision to employ the term ‘Shylocks’ following criticism from Jewish groups. “Vice President Joe Biden’s insensitive remarks are offensive to both Asian-Americans and our Asian allies abroad,’ RNC spokesperson Ninio Fetalvo said at the time. ‘His comment is not only disrespectful but also uses unacceptable imperialist undertones.’ “In 2011, the Post noted that Biden appeared to praise China’s one-child policy, which has ‘rested on coercion, including forced sterilization and abortion.’ The vice president’s office later clarified that he had not intended to do so. “The GOP, meanwhile, has touted its increased engagement with Asian Americans, efforts to combat hate crimes, and economic progress -- noting, for example, that Asian Americans received on average the largest amount from the GOP tax bill. “This November, we must vote for the candidate who is actually fighting for us, not the one who using us as a political pawn,’ Tse, the RNC APA spokesperson, told Fox News.” Read more here：https://www.foxnews. com/politics/gop-hits-bidens-head-turningcomments-on-asian-americans-after-formervp-accuses-trump-of-xenophobia?utm_medium=email&utm_source=pu_48&utm_campaign=20200529_125207_&utm_content=
Note: Over the past few days, the radical idea of dismantling and defunding the police has emerged as Democrat Party orthodoxy. Ilhan Omar has called for police in Minneapolis to be disbanded and AOC, one of Joe Biden’s policy advisers, is calling on her colleagues “to sacrifice to make sure that over-funded police departments are defunded.” Officials in Los Angeles have proposed cutting $150 million from LAPD and New York City Mayor Bill de Blasio plans to decrease NYPD funds. RNC Chairwoman Ronna McDaniel emphasized Joe Biden’s silence on police defunding (a mid-level campaign staffer issued a statement, but Joe Biden still has yet to address this issue) while President Trump continues to support law and order. Democrats’ calls to defund the police are dangerous! Doing so would weaken the rule of law and cause chaos in the US. President Trump will always fight for law and order and stand up for the men and women in blue who protect American communities. Bottom Line: While Joe Biden’s Democrat Party has embraced defunding the police, President Trump will always support good police work and support law and order.
Strong Showing from APA Activists for RNC Weekend of Action
This past weekend, Trump Victory, the joint field effort between the RNC and the Trump campaign, celebrated what they called a “summer kick off” with a National Weekend of Action. “Volunteers across the country were coming out to show their support and ‘celebrate [Trump’s] birthday by knocking on doors (in states that allowed) and making phone calls,” said Dr. Marina Tse, RNC Director of APA Media Affairs. Trump’s campaign manager Brad Parscale tweeted earlier:
While Biden Hides, Trump Supports Law and Order
The loudest voices in the Democrat Party have made their new demand clear: defund the police. Democrat Rep. Val Demings, a former police chief no less, and a potential Biden VP pick, turned her back on her brothers and sisters in law enforcement this morning. Demings said the Minneapolis City Council is “is being very thoughtful” for dismantling their police department.
• Asian Pacific American Trump supporters made over 60,000 voter contact calls during the National Weekend of Action into GA, AZ, MI, VA, TX, and OH. • APA volunteers hosted trainings and meet-ups. • The largest APA Engagement and Training event, in GOP’s history, was held in Georgia on Sunday.
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May Employment Numbers Are The Beginning of A Great Recovery
The May jobs report serves as an emphatic reminder about the strength of President Trump’s economic record. He built the greatest economy once, and now he is doing it again. During May, unemployment for Asian Pacific Americans stabilized. Despite the country effectively shutting down due to a global pandemic, the economy has begun to reopen under President Trump ADDING 2.5 million jobs instead of the predicted loss of 7.5 million in May. And instead of the unemployment rate being near an expected 20%, the unemployment rate dropped to 13.3%.
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CNBC
Denver Expands Access to Free COVID-19 Testing
The City and County of Denver is expanding access to free, drive-up COVID-19 testing to anyone potentially exposed to the virus and those heading back to work during this current phase of recovery. With expanded access, people who do not currently have COVID-19 symptoms but believe they have been exposed to someone with COVID-19, or have been deemed essential by their employers, are now eligible to register for a free test. In addition, those who have been contacted by either the State or by the Denver Department of Public Health & Environment (DDPHE) due to contact tracing are also encouraged to register and be tested as soon as possible at Denver’s COVID-19 testing site, located at the Pepsi Center. “Increasing access to testing in Denver has been a huge priority,” said Mayor Michael B. Hancock. “Ramping up capacity and access for more people, including those not experiencing COVID-19 symptoms, is critical to staying ahead of this pandemic and putting our city on the road to recovery.” The testing site is located in the Prius parking lot on the far west side of the Pepsi Center. Access the entrance at 7th St and Auraria Parkway. There is no access to the testing site off of Speer or at the main entrance of the Pepsi Center. The site has been testing more than 400 people each day since it opened on May 22, with the ability to increase that capacity as needed. Results are available within three to four days by registering on the LabCorp website, downloading the LabCorp app to a smartphone, or by calling the Denver Health NurseLine at 303-389-1876. Those who call the NurseLine for results over the phone will have to provide the testing ID number given to them on the day of their test. The testing site is open daily, excluding holidays, from 8 a.m. to 4 p.m. Individuals will be responsible for administering the nasal swab themselves to expedite the process and increase safety. If individuals are unable to do so, the staff will assist. Residents should register online before coming to the site and bring a document that verifies their name such as a photo ID (current or expired), RTD pass, EBT card, school ID, phone or utility bill, or library card. Minors may be registered by their parents. Name verification is necessary to identify individuals who have been tested multiple times. Those
who test positive will receive follow up guidance from DDPHE for contact tracing purposes. Community members without internet access can call 311 for help. With the recent large demonstrations in addition to the relaxing of group size restrictions and many people returning to work, there is a concern about possible COVID-19 transmissions between members of larger gatherings. Therefore, the city encourages any participant who would like a free COVID-19 test to obtain one at Denver’s free testing site --with the assurance that only an individual’s name and date of birth need be verified to obtain the test and receive confidential results. (From City and County of Denver Official Site)
City and County of Denver Variance Requests Approved by CDPHE
DENVER – The City and County of Denver’s latest variance request to portions of the Safer at Home Order has been approved by the Colorado Department of Public Health and Environment (CDPHE). Denver’s Department of Transportation and Infrastructure (DOTI) today has also approved the first street closures along Larimer Street and Glenarm Place so that restaurants can provide more physical distancing space for returning customers. The city’s variance request to CDPHE included museums and Four Mile Park, restaurants, the Cherry Creek Mall, gyms, recreation centers, indoor pools and horse competitions at the National Western Complex. The requests were approved by CDPHE with some amendments. CDPHE has deemed that variance locations should not exceed more than 50 people gathered in a room or “confined indoor space” at any given time, and not exceed 125 people in an outdoor space. The approved variances for the City and County of Denver include: Museums may operate at 50% occupancy with up to 50 people per room and not to exceed 125 people in an outdoor space. Museums can open under this variance after submitting their reopening plan to the city for review and approval Restaurants may operate at 50% occupancy with up to 50 people in a confined indoor space (as opposed to the Safer at Home statewide limitation of 50 people for the entire restaurant) The Cherry Creek Mall may open the indoor mall, and stores within Cherry Creek Mall may operate at 50% occupancy Gyms, recreation centers and indoor pools may operate at 50% occupancy with up to 50 people in a confined space Horse competitions at the National Western Complex can occur with activities limited to 50 people and no spectator shows The variances were approved by CDPHE based on the city’s current prevalence of COVID-19. The city also needed to demonstrate that it has a strong public health surveillance system, sufficient hospital capacity, and appropriate thresholds for rolling back the variance if conditions worsen. CDPHE’s approval to the city’s variances takes effect immediately. Denver hit two other milestones today in the unprecedented effort to help food establishments safely serve more customers as the phased re-opening of the city continues. Eighty-five food establishments have now been approved to participate in the Temporary Outdoor Patio Expansion Program. The first street closures have also been approved for Larimer Street between 14th and 15th streets in Larimer Square and on Glenarm Place between
2020 June Issue
15th and 17th streets in the Denver Pavilions. The street closures will allow multiple establishments to expand their outdoor service area into the roadway. Businesses interested in temporarily expanding their outdoor serving area, including moving into sidewalks or streets, can apply at this website. For up-to-date information on the city’s recovery and relief plan and actions, visit Denvergov. org/ Covid19. (From City and County of Denver Official Site)
City and County of Denver Service Reopening Updates
DENVER – City and County of Denver agencies continue to reopen for in-person services as the state’s guidelines related to COVID-19 transition and the Safer at Home phase evolves. Physical distancing practices will be observed within all city facilities, and employees and members of the public are required to wear face coverings while inside city facilities. Parks and Recreation All Denver dog parks will reopen on Friday, June 19. Children’s playgrounds have reopened, however playgrounds and other park equipment are not disinfected by park operations staff. When using these facilities, consider these precautions: Practice good hand hygiene, using hand sanitizer frequently when soap and water is not available Recreate safely in groups of 10 or less and physically distance yourself from others by at least 6 feet Masks are highly recommended. 311 Call Center Beginning Monday, June 22, 311 will be in operation Monday – Friday, 7 a.m.-7 p.m. Many city services and questions can be answered by visiting denvergov.org. Arts & Venues The McNichols Civic Center building has reopened to visitors. Following Safer-At-Home guidelines, small groups (currently capped at eight people or fewer) can make appointments online for a twohour time slot: 8:30-10:30 a.m., 11:30 a.m.-1:30 p.m. or 2:30-4:30 p.m. daily. Arts & Venues plans to increase group size in the coming weeks as guidance allows. Please click here to make an appointment. Clerk and Recorder Denver Clerk and Recorder will reopen for in-person marriage and recording services by appointment only beginning July 1. Please make sure you have an appointment before arriving. Excise and Licenses In-person customer service at Excise and Licenses is being offered by appointment only. All license applications not available online can be submitted via email. Denver Economic Development and Opportunity The Denver Workforce Centers at Westside (1200 Federal, 1st floor), Montbello (4685 Peoria St., Suite 251) and the Denver International Airport (8500 Peña Blvd., 5th Level Main Terminal) will be opening on July 1 on a limited, by-appointment basis. Jobseekers may use workforce.development@denvergov.org or 720-772-1182 (8 a.m.-5 p.m. Monday-Friday) to make an appointment. Denver Motor Vehicle Denver Motor Vehicle (DMV) will resume in-person services on Monday, June 29. Prior to reopening, the DMV is implementing a number of precautions to protect both customers and staff from potential COVID-19 exposure, including glass dividers for all customer-facing windows, physical distancing cues in all branch locations, (Continued to Page 4)
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(Continued from Page 3) increased cleaning frequency for high-traffic areas, and hand sanitizer and face mask availability for all staff and clients. The DMV is currently testing a text messaging system to allow DMV branch staff to text clients when it is their time to enter the building in order to maintain appropriate capacity in lobby areas. People are encouraged to bring a cell phone or mobile device with them in order to receive these notifications and to allow efficient service to all customers. Most DMV title and registration transactions can be completed online at dengergov.org/dmv or by mail. Denver Public Library Denver Public Library locations remain closed. Online services and daily programming opportunities can be accessed at www.denverlibrary.org. Book drops are now open at all locations with the exception of the following branch libraries: • Byers Branch Library (closed for renovation) • Montbello Branch Library (temporarily closed for construction) • Smiley Branch Library (closed for renovation) Curbside service will begin by appointment on Tuesday, July 7. Taxpayer Services Taxpayer services have reopened for in-person services in the Wellington E. Webb Municipal Building, effective immediately. Denver Jails The Denver Sheriff Department will open the Van Cise-Simonet Detention Center and Denver County Jail lobbies for scheduled video monitor visitations only, beginning June 26. Services Available Online Most city services are available online. Members of the public are encouraged to visit the city’s web-
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site or to call 3-1-1 if they have questions specific to the availability of city services online or in-person. (From City and County of Denver Official Site)
State Labor Dept: $2.5 Billion in Unemployment Benefits Paid Since March 29th
Today the Colorado Department of Labor and Employment (CDLE) announced it has paid out approximately $2.5 billion in unemployment benefits since March 29th. That amount includes regular unemployment benefits, and those filing Pandemic Unemployment Assistance (PUA) claims and Federal Pandemic Unemployment Compensation (PUC) claims, which provides eligible claimants an extra $600 in federal benefits each week. There were 10,270 initial regular unemployment claims filed the week ending June 13 and 17,945 Pandemic Unemployment Assistance (PUA) claims. Over the past 13 weeks, a total of 456,763 regular unemployment initial claims have been filed and a grand total of 568,721 claims, including federal PUA benefits.* Benefits paid since March 29: Regular UI: $880.6 Million Pandemic Unemployment Assistance (gig workers/self employed): $277.5 Million Federal Pandemic Unemployment Compensation ($600/weekly UI benefits to eligible claimants): Apx. $1.32 Billion Total: $2.5 Billion Industries 6-10: Education Services: 744 (7.8%) Transportation and Warehousing: 603 (6.3%) Construction: 506 (5.3%) Professional and Technical Services: 569 (4.9%) Arts, Entertainment, and Recreation: 392 (4.1%) * Initial claims are those claims filed to establish benefit eligibility. Initial claims are considered a reliable leading indicator of economic activity. All applications filed are those applications for benefits filed with the Colorado Department of Labor and Employment and may not have been through various eligibility determination e.g. wage verification, etc. (From Colorado Department of Labor and Employment ) T H E I N T E R N AT I O N A L G RO U P AT R E / M A X P RO F E S S I O N A L S
ANDY K. LEUNG Broker Associate (fluent in Chinese) 303-868-7839 andy.leung@remax.net www.andyleungrealestate.com 500 E. 84th Ave, Suite A-1 Thorton, CO 80229
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Tax Tips to Aid in Retiring Early Don’t forget to look at the retirement specials on the tax menu
Wouldn’t it be nice to check out of the workforce early and not have to worry about having enough money for retirement? While good financial planning can help you get there, leveraging the tax code as part of your retirement plan is also a good idea. Here are some tax tips that could help you reach your early retirement goal. • Maximize tax advantaged retirement accounts. Retirement accounts like traditional IRAs and 401(k)s allow qualified taxpayers to save pre-tax money, invest the funds, and not pay taxes until the funds are withdrawn during retirement years. The IRS still receives its tax on your income and earnings, but they delay receiving the funds until you withdraw them in the future. In other words, the IRS allows you to invest their potential tax receipts along with your money and will take its share of your investment earnings at a later date. • Leverage the catch-up provisions within retirement accounts. Most retirement accounts allow
older taxpayers to invest even more money in these retirement savings accounts. The key retirement fund limits for 2020 are: • 401(k), 403(b), 457: $19,500 ($26,000 if 50 or over) • Traditional/Roth IRAs: $6,000 ($7,000 if 50 or over) • SIMPLE IRA: $13,500 ($16,500 if 50 or over) • Consider Tax-Free Retirement Choices. Roth IRAs and Roth 401(k)s are an interesting alternative to other qualified retirement plans. Within Roth accounts you invest money in your plan with after-tax dollars, but any earnings are tax-free as long as you follow the withdrawal rules. While this lowers your potential initial investment, you have created a source of funds that can earn money without being taxed in the future. If you expect tax rates to go up during your retirement years, perhaps a Roth IRA should be included in your retirement portfolio. • Roth Rollovers. You may also roll money from most qualified retirement accounts into Roth retirement accounts. When you do this, you must pay the tax on the funds rolled over, but the rollover makes any future earnings within this account tax-free as long as you follow the distribution rules. • Consider Health Savings Accounts and their catch-up provisions. Health Savings Accounts allow you to set aside money to pay for qualified health expenses in pre-tax dollars. To be eligible to set up
this type of savings account, you must be enrolled in a qualified high deductible medical insurance plan. The good news is that unused funds can be invested and carried forward to future years. These funds can then be used to augment your retirement plan. Consider state taxes. Part of your retirement plan should be understanding where you wish to live. It is important to note that states are not created equal on this front. Many states have no state income taxes, while others like Hawaii are in excess of 10%. And you must project where your chosen state might be in the future. Many states are also trying to take the position that you must pay them state taxes on all retirement plan withdrawals from money earned while you lived in their state, even though you moved ten years ago! This problem will not go away as long as governments continue spending on programs in excess of tax collections. Consider additional deductions and benefits. There are also a number of other benefits that should be considered as you reach retirement age. These include: • the additional standard deduction when you reach age 65 • the credit for being elderly/disabled • the timing of when to commence Social Security benefits • the impact of Medicare and Medicaid plans • the potential taxability of retirement benefits including Social Security and pension plan income
Estate Taxes: What EVERYONE Should Know
Most taxpayers ignore the federal estate tax, thinking they will never be touched by it. Unfortunately, you do this at your own peril. Why? Because states often have this tax AND politicians have a habit of frequently changing the rules. The best approach for all taxpayers is to understand the basics of the estate tax. Here is a quick summary of common questions you should be able to answer. Q. Who pays estate taxes? A. The tax is levied against the estate of a deceased person, which is considered a separate legal entity by the IRS. But the surviving family is effectively responsible for paying the estate tax because it cuts into their inheritance. Q. What is included in the taxable estate? A. Your estate includes personal property owned at the time of death, such as a home, cars, cash, collectibles and investments. Investments include securities, real estate, bank accounts and retirement accounts. The total taxable estate is the value of these assets minus deductible expenses and debts. Q. How are assets valued?
A. The value for tax purposes is generally the property’s fair market value (FMV) on the date of death. Therefore, the basis for computing gain or loss is stepped up to this value. For example, if Diane Monet paid $10,000 for a painting and it’s worth $25,000 at her death, the estate value is $25,000. There are other valuation options in addition to FMV, so this area can get complicated in a hurry. Q. How is the estate tax calculated? A. For federal purposes, the tax is 40% of assets in excess of the federal exemption. The federal exemption for 2020 is $11.58 million. The exemption amount is scheduled to decrease to $5 million in 2026. There continues to be an ongoing debate over what this federal exemption amount should be, so it is a good idea to pay attention to future discussions out of Washington, D.C. to understand how it could impact your estate. Q. Can a married couple double the exemption? A. Yes. If handled correctly, a couple can effectively shelter up to $23.16 million ($11.58 million times 2) from federal tax in 2020. Remember, this amount is scheduled to be dramatically reduced in 2026. Q. What is an inheritance tax? A. Not to be confused with an estate tax, an inheritance tax is paid by those who receive the money from the estate of the person who dies. While there is
no federal inheritance tax, six states (Iowa, Pennsylvania, New Jersey, Kentucky, Nebraska and Maryland) could tax you if you inherit money. Q. What about state taxes? A. Eight states and the District of Columbia currently have an estate tax. The exemption amounts in these states vary, with one as low as $1 million! If you live in one of these areas you better know the rules and have a plan: Connecticut, District of Columbia, Illinois, Massachusetts, Maryland, Minnesota, New York, Oregon and Washington. Q. How are gifts to others handled? A. When you give a gift to someone, the federal government generally does not care. But when the value of all gifts to one person in a given year exceed an annual threshold, you must report this to the federal government. This threshold in 2020 is $15,000. The gift tax rules are currently incorporated into the estate tax system. So careful planning is required in this area, especially if you are providing gifts to help finance various items like someone else’s education. Does this cover everything about estate taxes? Not by a long shot. But hopefully by understanding some of the basics, you will have a better idea of knowing when to ask for help.
www.awaccountingtax.com Phone: 720-663-8118
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Business travelers with shortened quarantine relatively safe: experts
Taipei, June 22 (CNA) The countries from which Taiwan is allowing incoming business travelers to apply to shorten the length of their mandatory 14-day quarantine are considered relatively safe, public health experts said Monday. Starting that day, Taiwan is permitting business travelers from 15 countries and territories classified as low risk and low-to-moderate risk to remain in quarantine for five and seven days after their arrival, respectively, and to come out of quarantine if their self-paid COVID-19 test is negative. Of the countries, only Bhutan has expressed concern over the mathematical equation used to calculate the risk of individual countries, said Chen Hsiu-hsi (陳秀熙), vice dean of National Taiwan University’s College of Public Health (NTUCPH), at a weekly press briefing in Taipei. The mathematical model takes into account the number of confirmed cases, recoveries, and death rate to calculate a country’s “blocking index,” which ideally should be under one. Bhutan had an index of around 1.4, while all the other countries had an index lower than one, Chen pointed out. “Even though the number of infections in Bhutan is low, the rate of recovery in the country
is very slow,” Chen said. Bhutan has a total of 68 confirmed cases with 32 recovered and zero deaths, according to the country’s Ministry of Health COVID-19 situation report on Monday. The shortened quarantine applies to business travelers who have received permission to enter Taiwan, plan to spend less than three months in the country, and are visiting to conduct shortterm business activities such as product inspections, after-sales service, technical training or contract-signing, Minister of Health and Welfare Chen Shih-chung (陳時中) said at a Central Epidemic Command Center (CECC) press briefing on June 17. They must also have departed from a country or zone classified by the CECC as having a low or low-to-moderate COIVD-19 infection risk and must not have traveled to any other countries in the past 14 days, said Chen, who also heads the CECC. The CECC published a list of 11 low risk countries and zones -- New Zealand, Australia, Macau, Palau, Fiji, Brunei, Vietnam, Hong Kong, Thailand, Mongolia and Bhutan.
sia and Singapore as low-to-moderate risk countries, adding that the list will be updated every two weeks to reflect current conditions. Taiwan has banned entry to most foreign nationals since March 19 to prevent the spread of the COVID-19 coronavirus, with the exception of those who hold an Alien Resident Certificate (ARC) or documents proving they are in Taiwan for diplomatic, other official purposes, or to fulfill business contracts. Taiwan has been gradually easing its COVID-19 restrictions since June 7, when it recorded 56 straight days without any domestically transmitted infections. (From Focus Taiwan, by William Yen)
It also classified South Korea, Japan, Malay-
Taiwan-designed butterfly face masks hit U.S. market
Photo courtesy of Kao I-min.
San Francisco, June 16 (CNA) Face masks featuring a butterfly design containing an image of Taiwan created by a Taiwanese designer has been produced in the United States and has gained praise from President Tsai Ing-wen (蔡 英文). The masks were designed by Kao I-min (高 一民), 44, a freelance artist and brand designer who graduated from National Cheng Kung University’s Department of Architecture, when he was commissioned to design cardboard boxes with markings identifying Taiwan as the country of origin. The design was made into stickers for the cardboard boxes originally meant to contain disposable gloves to be shipped to the U.S., Kao said, adding that he did not expect that the work would later be used for the production of face masks.
An important implication of the design is that “one of the wings of the butterfly is in the shape of Taiwan, symbolizing that Taiwan is the butterfly kingdom, while the words ‘Taiwan can help!’ are also printed on the masks.” While the design was the brainchild of Kao, two of his schoolmates turned it into a product -- Chen Yu-wen (陳郁 雯), an urban planning engineer in Hong Kong and Ou Mei-lan (歐美 瀾), a software engineer in the San Francisco Bay Area. Photo courtesy of Kao I-min. Ou began seeking an international platform for production and sale of the masks, Kao added. Before Tsai was sworn in May 20, Kao said he sent samples of the mask to her and to Minister of Health and Welfare Chen Shih-chung (陳 時中) calling on the government to lift a ban on surgical mask exports. The government lifted the mask export ban on June 1 and Kao subsequently received a letter signed by Tsai.
In the letter, Tsai encouraged Kao to continue exploring the beauty of Taiwan’s land and promoting Taiwan with his art to make more people knowledgeable about Taiwan’s culture. Taiwanese manufacturers have been collaborating with him to mass produce the masks, which were put up for sale on an online platform in the U.S. earlier this month, according to Kao. Kao said his mask design is not aimed at reaping economic gains but at promoting Taiwan globally. (From Focus Taiwan, by Chou Shih-hui and Evelyn Kao)
The letter from President Tsai Ing-wen. / Photo courtesy of Kao I-min.
2020 June Issue
Asian Pacific Business Journal
Page 7
OCAC to help overseas Taiwanese groups buy surgical face masks
Taipei, June 8 (CNA) The Overseas Community Affairs Council (OCAC) said on Monday that it will serve as a platform to allow overseas Taiwanese groups easier access to buy Taiwan-made surgical face masks, after the government announced the lifting of a ban on the export and open market mask sales on June 1. According to an OCAC press release, many overseas Taiwan groups and businesses have long expressed their desire to buy face masks made by Taiwanese companies amid the COVID-19 pandemic, but have been unable to do so due to the ban that has been in place since January. As the ban was lifted on June 1, the OCAC said it will now allow such groups easier access to buy the masks. From Monday, overseas Taiwanese associations, schools and business associations can either contact their local OCAC branch office or OCAC’s
Taipei headquarters to apply to purchase masks from Taiwanese companies before a June 30 deadline. Those who wish to make the purchases will have to buy at least 100,000 masks each time, priced at NT$5 (US$0.16) per mask. They cannot be resold for profit, according to the OCAC. The groups should also appoint its representative in Taiwan to serve as a contact responsible for the purchases, it added. After the June 30 deadline, the OCAC will come up with a list of all overseas groups from around the world that wish to buy the face masks, which it will hand to the Central Epidemic Command Center (CECC). The CECC will then help to find local manufacturers who can take the orders, the OCAC said. The appointed contacts of the overseas groups will then be given the name of the manufacturer in
question to facilitate the purchase, OCAC added. The CECC announced in late May that the open market surgical mask sales would be lifted starting June because Taiwan now has enough masks to meet its daily needs, especially as the COVID-19 pandemic appears to be easing. (From Focus Taiwan, by Chen Yun-yu and Joseph Yeh)
Taiwan, U.S. Japan mark GCTF anniversary with strengthened commitment Taipei, June 1 (CNA) Taiwan, the United States and Japan issued a joint statement Monday, the fifth anniversary of the Global Cooperation and Training Framework (GCTF), pledging to further strengthen their trilateral partnership and seek greater cooperation. The framework serves as a platform for Taiwan to share its expertise with partners around the world. Launched in June 2015, the GCTF was originally a Taiwan-U.S. platform for expanding collaboration on global and regional challenges. Japan joined the platform in 2019 and since then, several fourth-party partners stepped in to co-host GCTF workshops, including Sweden and Australia in 2019 and this year, the Netherlands. To mark the 5th anniversary of the GCTF, Taiwan’s Ministry of Foreign Affairs (MOFA) hosted a news conference in Taipei Monday, attended by Minister of Foreign Affairs Joseph Wu (吳釗燮), American Institute in Taiwan (AIT) Taipei Office Director Brent Christensen, and Hiroyasu Izumi, chief representative of the Japan-Taiwan Exchange Association. Also present at the event were representatives or deputy representatives in Taiwan from Canada, New Zealand, Sweden and the United Kingdom. Meanwhile, a retrospective video was shown to mark the GCTF’s fifth anniversary, which included congratulatory messages from U.S. Congressmen Ami Bera, Ted Yoho; and Keitarō Ohno, a member of Japan’s House of Representatives. Wu said the GCTF is a platform for Taiwan to highlight its strength and expertise, help countries in the region to build up their national capabilities, strengthen multilateral cooperation, enhance substantive relations with like-minded countries and further expand Taiwan’s international space. Over the past five years, 23 international workshops under the GCTF platform covering a diverse collection of topics such as public health, energy security, disaster relief, law enforcement, media literacy and women’s empowerment have been
held, with the participation of 500 officials and experts from 38 countries, according to Wu. Wu said that during his tenure in office, he tripled the budget for the GCTF platform to enable Taiwan to forge more cooperation with more countries. To make the platform’s operation more systematic, MOFA decided to establish the GCTF task force under its Department of North American Affairs, Wu noted. It will also establish the GCTF Alumni Network to build and expand networks and organize reunions for former GCTF participants, he added. Just as President Tsai Ing-wen (蔡英文) has said, the Taiwan-U.S. partnership has already grown from a bilateral partnership to a global partnership, Wu said. Wu added that the cooperation between Taiwan and Japan in both the public and private sectors is increasingly closer and he expressed hope that the GCTF will continue to strengthen cooperation and partnership among Taiwan, the U.S. and Japan. Wu, Christensen and Izumi released a joint statement noting that the GCTF was established to provide a platform through which Taiwan could contribute to global problem-solving and could share its expertise with partners across the region. Taiwan’s frequent exclusion from international bodies has largely deprived the world of the country’s humanitarian assistance, technical know-how, and rich experience as a democratic success story, the statement added. Speaking on the same occasion, Christensen said the GCTF was born out of a very simple idea, which MOFA recently adapted into the slogan -“Taiwan can help.” “In todays context, the value of Taiwan’s assistance is almost too obvious to mention. But in 2015, Taiwan’s generosity, expertise, and valuable experience were not nearly as well understood by the international community or around the world,” Christensen said. “I can also say that the GCTF has been one of
the most durable and sustainable contributions to the U.S.-Taiwan partnership, and really to the world,” Christensen added. Unlike other international fora whose gatherings are often symbolic exercises constructed as platforms for speeches by high-level officials, GCTF workshops are practical, he continued. Christensen particularly highlighted that Taiwan has managed the COVID-19 pandemic better than anywhere else in the world. Even as countries around the world clamor to better understand the Taiwanese model, Chinese pressure still prevailed in shutting Taiwan out of the World Health Assembly this year. Touting the GCTF platform as free from political motives and designed solely to help professionals benefit from Taiwan’s experience, expertise, and generosity, Christensen said he looks forward to continuing work with the Japan-Taiwan Exchange Association as they recognize and amplify Taiwan as a reliable partner, a democratic role model and a force for good in the world. Izumi said that Japan, Taiwan and the U.S. have shared values of freedom, democracy and human rights and that Japan is happy with its meaningful participation in the GCTF platform. “Japan will not leave Taiwan and cannot leave Taiwan. Japan and Taiwan must go together,” Izumi added.(From Focus Taiwan, by Chen Yun-yu and Evelyn Kao)
Minister of Foreign Affairs Joseph Wu (center), American Institute in Taiwan (AIT) Taipei Office Director Brent Christensen (left), and Hiroyasu Izumi, chief representative of the Japan-Taiwan Exchange Association.
Asian Pacific Business Journal
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2020 June Issue
CDC releases consolidated COVID-19 testing recommendations The Centers for Disease Control and Prevention (CDC) has released consolidated recommendations for COVID-19 testing, including interim testing guidelines for nursing home residents and healthcare personnel, as well as testing strategy options for high-density critical infrastructure workplaces after a COVID-19 case is identified. These recommendations compile and update previous testing guidance. The consolidated recommendations for testing, Overview of Testing for SARS-CoV-2, were developed based on what is currently known about COVID-19 and are subject to change as additional information becomes available. This document includes a summary of current CDC recommendations for testing people who • have signs or symptoms of COVID-19; • have no symptoms but recently had contact with someone known or suspected to have COVID-19; • have no symptoms and no known contact with someone known or suspected to have
COVID-19 but still may be tested for early identification in special settings; • have had confirmed COVID-19 but no longer have symptoms; and • may be tested by public health officials to track spread of the virus that causes COVID-19. Testing Guidelines for Nursing Homes is an important addition to other infection prevention and control (IPC) recommendations aimed at keeping COVID-19 out of nursing homes (as well as other long-term care facilities), detecting cases quickly if they do occur, and stopping further transmission in these facilities. Nursing home residents are at high risk for infection, serious illness, and death from the disease. Updated recommendations include recommendation against testing the same individual more than once in a 24-hour period; consideration for testing residents with symptoms for other causes of respiratory illness, such as influenza; and coordination of repeat testing in response to outbreaks with local, territorial, and state health depart-
ments. Outbreaks of illness among workers in food-producing facilities and surrounding communities have raised unique questions about testing for COVID-19. Critical infrastructure employers have an obligation to manage the continuation of work in a way that best protects the health of their workers and the general public. Appropriate workplace protections, such as engineering and administrative controls, for those present in the workplace should remain in place. In addition, CDC’s Testing Strategy for Coronavirus (COVID-19) in High-Density Critical Infrastructure Workplaces after a COVID-19 Case is Identified presents different testing strategy options for exposed co-workers when public health organizations and employers determine testing is needed to help support existing disease control measures. Such strategies can aid in identifying infectious individuals with the goal of reducing transmission of SARS-CoV-2 in the workplace. (From CDC Website)
Coronavirus Disease 2019 (COVID-19) Cases in the U.S.
Last updated on June 24, 2020
Cases by Age The following chart shows the age of people with COVID-19. Hover over each bar or click on the plus (+) sign below the chart to see the number of cases in each age group. Data were collected from 1,985,073 people, and age was available for 1,982,114 (99.9%) people.
and ethnic composition. These data are not generalizable to the entire U.S. population. If cases were distributed equally across racial and ethnic populations, one would expect to see more cases in those populations that are more highly represented in geographic areas that contributed data.
Cases & Deaths by Jurisdiction 40 jurisdictions report more than 10,000 cases of COVID-19.
Cases by Race/Ethnicity The following chart shows the race/ethnicity of people with COVID-19. Hover over each bar or click on the plus (+) sign below the chart to see the percentage for each race/ethnicity group. New Cases by Day Select from the “Age” dropdown list to see the The following chart shows the number of new percentage for each age group. COVID-19 cases reported each day in the U.S. Data were collected from 1,985,073 people, since the beginning of the outbreak. Hover over but race/ethnicity was only available for 953,326 the bars to see the number of new cases by day. (48.0 %) people. CDC is working with states to provide more information on race/ ethnicity for reported cases. The percent of reported cases that include race/ethnicity data is increasing. These data only represent the geographic areas that contributed data on race/ethnicity. Every geographic area has a different racial
Cases & Deaths among Healthcare Personnel Data were collected from 1,985,072 people, but healthcare personnel status was only available for 433,885 (21.9%) people. For the 84,557 cases of COVID-19 among healthcare personnel, death status was only available for 54,442 (64.4%).
(From CDC Website, Updated June 24, 2020) Asian Pacific Business Journal Publisher: Wendy Chao President: Frank Chao Editor: Alysia Lee