Reducing the IRS budget incentivizes aggressive tax evasion by the wealthy because the probability of being audited is extremely low. This 'tax gap' of uncollected revenue is a more significant de facto tax cut than legislated ones, costing the government hundreds of billions.
By appointing co-heads for major departments, firms can mitigate 'key person risk.' This structure ensures no single individual becomes so critical that they can leverage their importance for outsized demands, as the company can always afford to let one of them walk away.
In acquisitions where a founder is key to the business, a significant portion of the payout is structured not on performance (EBITDA), but on tenure. This creates an 'onerous employment lockup,' legally binding the founder to stay for a set period to ensure business continuity.
An acquirer will pay a 2-3x multiple for a media business with diversified revenue streams (multiple shows, many advertisers) compared to one with the same total revenue from a single show and a few clients. This premium is due to significantly reduced concentration risk.
Use a simple litmus test: Is your parents' house a bed, or a home? If you are out 14+ hours a day building a career and social life, it's a wise way to save. If you're spending your days there, you are stunting crucial personal and professional development.
A one-hour commute each way consumes ten hours per week. Reinvesting that time into your career and social network can yield far greater long-term economic returns than the rent money saved, making the commute the most expensive part of the arrangement.