But you don't need to police the mercenary accountants who construct tax shelters, as long as you police the auditors who sign off on the cash flow statement. Then you can work from first principles based on the cash flow. Any disagreement may be resolved by telling the firm that their tax lawyers are too aggressive. And that if they persist in their disagreement, they are welcome to a highly public court case that will splash their effective tax rate all over the front pages.

But this requires a truthful and reasonably accurate picture of the cash flow, which is why you have to police the auditors that audit the cash flow statements.

- Jake

Friends come and go. Enemies accumulate.