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Russ: This is the BusinessMakers Show heard on the radio and seen online at thebusinessmakers.com. My guest today Byron Hebert, Director at PKF Texas and also incoming Chairman of the Turnaround Management Association. Byron, welcome to the Businessmakers Show.
Byron: Thank you Russ. Good to be here.
Russ: All right. Well tell us about the Turnaround Management Association.
Byron: Well the Turnaround Management Association started in Chicago about 30 years ago and it is an organization designed to help companies that are going through the bankruptcy process. That was the original intent. Now it's branched out now and we do more work to try to keep companies out of the bankruptcy court as well. It's probably a mix of about 50/50 but the certification that is bestowed upon by the Turnaround Management Association to professionals, a CTP certification, which stands for Certified Turnaround Professional and those are the guys that are generally appointed by the judge to be chief restructuring officer for a company that's going through the bankruptcy process.
Russ: Ok. Do you ever certify CEOs that have gone through the process and saved companies?
Byron: There's a test and you have to go through much like the CPA exam so they certainly can but they probably wouldn't want to do it.
Russ: Wouldn't want to do it. Well quite frankly I wish a couple of times in my past I knew there was a Turnaround Management Association. That's pretty cool.
Byron: Yeah. They do serve a great purpose in the business community.
Russ: Ok. All right. But we're here specifically to talk about an upcoming event hosted by the Turnaround Management Association, right?
Byron: That's right. Very excited to have Dr. Laffer, Arthur Laffer speak at Turnaround Management Association dinner event coming up on September the 12th and it's going to be at the Junior League. It's going to be a great event. Dr. Laffer as you know was the, worked with President Regan for both of his terms, two terms, was the father of a supply side economics and developed the Laffer Curve.
Russ: Right. Absolutely. In fact is the event open to the public?
Byron: It is open to the public. We'd love to have folks there. The cost is going to be $125.00 for nonmembers of the Turnaround Management Association and if you purchase your ticket before September 6th you'll take advantage of that discount. After that the cost will be $150.00. Please take advantage of the discount.
Russ: Ok. Now Arthur Laffer, I mean he is big time known for supply side economics, free enterprise, small government, low taxes in general. Correct?
Byron: Yes. Well he's a bit on the outs right now, see.
Russ: He is but that might make him extremely popular for this upcoming event, right?
Byron: Absolutely. He really is and he was the father of that and certainly helped Reganomics and I believe there's a proposition 13 in California that he helped Regan develop as well which reduced property taxes in the state a number of years ago.
Russ: Ok. Well there's a sort of a theme on this show about leaning towards free enterprise and capitalist as opposed to socialism so people that watch or listen to this show are probably big Arthur Laffer fans and you mentioned the Laffer Curve. Explain that to us.
Byron: Ok. Well I can explain it to you, Russ, but I just happen to have it right here. I can show it to you.
Russ: All right. Great.
Byron: And so basically for our listening viewers along the y axis would be government revenue and along the x axis being the tax rate and so as you can see there's an optimal point according to Laffer Curve where you maximize government revenue and you notice it's not at the 100 percent tax rate so somewhere in the middle or there's a particular tax rate where you maximize government revenue and maximize entrepreneurship and promote starting businesses and that sort of thing.
Russ: Well it kind of works like operating a business. When you're pricing a product in business there's a point where your enhancing the profit and there's a point where you get it so high people quit buying it and you don't.
Byron: That's right. You bought yourself out of the market.
Russ: I'm worried these days, Byron, that we're pricing ourselves out and we're going to get a diminishing return in government income based on the talk about higher tax rates.
Byron: You're right and I wouldn't be surprised if our bond rating was lowered. Oh it was. It was.
Russ: All right. And I expect these are topics that Arthur Laffer will cover at the event.
Byron: I'm sure he will. I'm looking forward to hearing him speak.
Russ: Ok. Once again what's the date of the event?
Byron: September 12th at the Junior League, 6:00, 6:00 to 9:00. We'd love for you to come out and hear Dr. Laffer speak.
Russ: Ok and how can our listeners and viewers find out about buying a ticket?
Byron: They need to go to the website Turnaround Management Association's website and you can register at that website and that website is houston.turnaround.org.
Russ: Ok. Well Byron, I really appreciate you sharing that with us. I'm going to try to get there myself.
Byron: Great. We'd love to see you. Thanks Russ.
Russ: All right. That wraps up my discussion with Byron Hebert, Director at PKF Texas and incoming chairman of the Turnaround Management Association and this is the BuisinessMakers Show heard on the radio and seen online and thebusinessmakers.com.