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Banks Awarding Big Bonuses Benefit From Larger Tax Breaks

Posted on January 2nd, 2010 at 20:04 by John Sinteur in category: Robber Barons

[Quote:]

Along with Wall Street’s resurgent bonuses will come a jump in an ancillary benefit: tax breaks.

For all banks and Wall Street firms, “I’m sure we’re talking $200 billion total compensation, which would create a tax savings for the firms of $80 billion,” said Robert Willens, an accounting and tax analyst in New York who runs a consulting firm, Robert Willens LLC. The figure does not include bonus plans by hedge funds, which are likely to reduce their payouts after a down year.

The tax deductions, which will increase the bottom line of the banks, are perfectly legal and not new. They come as compensation for 2009 has roared back after the largest banks paid back billions of dollars in federal aid, an outlay still fresh in the minds of taxpayers. As pay goes up, so do the deductions.

So get this – the banks aren’t paying out bonus money out of their profits, they’re paying out your tax money! After all, the government has to get the money somewhere else…


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  1. This is presented lile some big conspiracy or special break for the banks. It is not. Paying employees is a business expense that is deducted from revenue to calculate profits, just as buying materials or machinery would be. Yes, the state receives less tax from the bank as a result, but the company’s profits will also look lower, with potential impact on the stock price.

    And do tax receipts actually go down? Let’s see, the article says that the banks pay $80 bln less tax on $200bln, and that the employee recipients will mostly pay the top tax rate of 40%, which will be… $80bln! So actually a net wash for the INS.

    You know you’ve got shitty journalism when the article claims that a $200bln expense instead of a $80bln expense “makes the bottom line look better”. Uh, no.

    Big dud, eh?

  2. Only if you accept the part where a bonus can be written off pre-tax as a business expense. Yes, that’s currently the allowed practice, but the discussion about what can and what cannot be written of as a pre-tax expense as opposed to a post-tax expense is an ongoing source of employment for tax lawyers (both on the government side and the business side). This means that this rule can be changed, or should I say “re-interpreted”.

    The UK government already taxes bonus money above a certain amount to discourage abuse, putting all the extra tax pressure on the employee side, perhaps it is a good idea to discourage abuse by adding some tax pressure to the employer side as well, and no longer allow the deductions to be pre-tax.

  3. OK, so banks pay out money to employees instead of to share holders at no net difference in tax revenue to the government, and you want regulation to prevent that? Really?

    I’d be interested to see some research on the history of tax status of bonuses if there is any. From my perspective, bonuses are simply salary expenses and I don’t see why they should be treated differently. (Remember that in many cases bonuses are written into employment contracts and thus are determined ahead of time, not a pay-out decided after profits are determined.)

    You can come along and say “maybe these should be after-tax expenses”, but floating that balloon doesn’t make what the banks are already doing suddenly scandalous.

    And even if you think that the bonuses should be after-tax expenses, how about you find some actual coherent article to quote instead of this piece of junk?

    Big dud.

  4. OK, so banks pay out money to employees instead of to share holders at no net difference in tax revenue to the government, and you want regulation to prevent that? Really?

    I think there’s good reason to believe that the bonus culture has contributed to the financial crash, so yes, I want regulation to prevent it from getting out of hand again. Is that really so difficult to believe? I don’t care if they were written into employment contracts or not, they contributed to significant damage to the economy and society. Would you dismiss murder just because it was written into a contract?

  5. Would you dismiss murder just because it was written into a contract?

    Murder is illegal. Paying bonuses is not. Next?

    The main problem I have with the article you posted is the tone of “OMG! Bonuses! Banks are screwing over the tax payers again to pay the fat cats.” When I argue that this is baloney, all of a sudden the argument is about pre-tax vs post-tax expenses. NOW the argument is about damage to the economy. I want to prevent financial crashes too, but can we do without the bogus journalism in the mean time?

    If you want to change the behavior of the banks, you have to change what’s legal or convenient for them. In the mean time, while it is *not* illegal or inconvenient for them to do certain things, let’s no be surprised when they do such things. Yes, it’d be nice if corporations acted ethically. If you feel that they should, I highly, strongly recommend, nay urge, you to read “Supercapitalism” by Robert Reich. I’m happy to send you a copy.

  6. In the mean time, while it is *not* illegal or inconvenient for them to do certain things, let’s no be surprised when they do such things.

    I am not – nor will I be surprised they will do so again, unless we do exactly that: make it illegal, or at least very inconvenient or non-profitable.

    If you want to change the behavior of the banks, you have to change what’s legal or convenient for them

    Bingo – you’ve got it. What do you think I’m talking about?

    Yes, it’d be nice if corporations acted ethically. If you feel that they should,

    I don’t – nor do I expect them to. That’s why I’m talking about changing the rules to force them to at least not damage society again. They’ve got the least useful job for society right now, as I’ve said before. Let’s limit the damage they do.

    I’m happy to send you a copy

    I will *never* reject a chance to learn, so please do.

  7. Book sent.

    What do you think I’m talking about?

    Well, ostensibly you were talking about banks paying bonuses out of tax money, which I argued they don’t do–they’re paying them out of shareholder profits.

AIG Executive Resigns Over Pay Limits

Posted on January 2nd, 2010 at 20:00 by John Sinteur in category: Robber Barons

[Quote:]

A top executive at American International Group has resigned because of pay curbs imposed by the Obama Administration’s pay czar, the insurer said on Wednesday.

Anastasia Kelly, AIG’s vice chairman for legal, human resources, corporate affairs and corporate communications, resigned effective Dec. 30 for “good reason” and is eligible for severance pay under the terms of the company’s executive severance plan, the insurer said.

Kelly stands to be paid about $2.8 million in severance, according to a source familiar with the matter.

Good riddance. Pity it has to cost $2.8m to get rid of this cockroach.


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Cartoon

Posted on January 2nd, 2010 at 19:59 by John Sinteur in category: Cartoon, Pastafarian News

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Prelude

Posted on January 2nd, 2010 at 15:47 by John Sinteur in category: Great Picture


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Most Pirated Movie of 2009 … Makes Heaps of Money

Posted on January 2nd, 2010 at 15:20 by John Sinteur in category: Intellectual Property

[Quote:]

According to TorrentFreak, last summer’s Star Trek movie was the “most pirated movie of 2009.” So it seems that Paramount Pictures was prescient when it gave testimony before the FCC that used Star Trek as an illustrative example of how “Internet piracy” is poised to devastate Hollywood and (though the nexus here is less than clear) undermine residential broadband in America.

Funny thing is, Star Trek is on course to make more than $100 million in profits.

Here’s the financial breakdown, courtesy of The Numbers.com, which gathers financial data for movie industry analysts:

Production costs: $140m
Promotion costs: ~$100m
Global box office revenues: $385m
U.S. TV syndication rights: $30m
DVD & Bluray revenues (anticipated, based on sales and rentals since Nov. 2009): >$100m

Based on these figures, film industry analyst Bruce Nash at The Numbers predicts a net profit to Paramount of more than $100m on the movie. Not bad for the “most pirated movie of 2009,” which was camcorded and widely released on the Internet within days of theatrical release.


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Solution to killer superbug found in Norway

Posted on January 2nd, 2010 at 15:16 by John Sinteur in category: News

[Quote:]

Aker University Hospital is a dingy place to heal. The floors are streaked and scratched. A light layer of dust coats the blood pressure monitors. A faint stench of urine and bleach wafts from a pile of soiled bedsheets dropped in a corner.

Look closer, however, at a microscopic level, and this place is pristine. There is no sign of a dangerous and contagious staph infection that killed tens of thousands of patients in the most sophisticated hospitals of Europe, North America and Asia this year, soaring virtually unchecked.

The reason: Norwegians stopped taking so many drugs.

Twenty-five years ago, Norwegians were also losing their lives to this bacteria. But Norway’s public health system fought back with an aggressive program that made it the most infection-free country in the world. A key part of that program was cutting back severely on the use of antibiotics.

Now a spate of new studies from around the world prove that Norway’s model can be replicated with extraordinary success, and public health experts are saying these deaths — 19,000 in the U.S. each year alone, more than from AIDS — are unnecessary.


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Tom the Dancing Bug

Posted on January 2nd, 2010 at 15:14 by John Sinteur in category: Cartoon


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  1. Funny. However, if you think about it for a few moments, yes, if they could, they would.

Irish atheists challenge new blasphemy laws

Posted on January 2nd, 2010 at 8:32 by John Sinteur in category: Pastafarian News

[Quote:]

Secular campaigners in the Irish Republic defied a strict new blasphemy law which came into force today by publishing a series of anti-religious quotations online and promising to fight the legislation in court.

The new law, which was passed in July, means that blasphemy in Ireland is now a crime punishable with a fine of up to €25,000 (£22,000).

It defines blasphemy as “publishing or uttering matter that is grossly abusive or insulting in relation to matters sacred by any religion, thereby intentionally causing outrage among a substantial number of adherents of that religion, with some defences permitted”.

[25 Blasphemous Quotes:]

1. Jesus Christ, when asked if he was the son of God, in Matthew 26:64: “Thou hast said: nevertheless I say unto you, Hereafter shall ye see the Son of man sitting on the right hand of power, and coming in the clouds of heaven.” According to the Christian Bible, the Jewish chief priests and elders and council deemed this statement by Jesus to be blasphemous, and they sentenced Jesus to death for saying it.

2. Jesus Christ, talking to Jews about their God, in John 8:44: “Ye are of your father the devil, and the lusts of your father ye will do. He was a murderer from the beginning, and abode not in the truth, because there is no truth in him.” This is one of several chapters in the Christian Bible that can give a scriptural foundation to Christian anti-Semitism. The first part of John 8, the story of “whoever is without sin cast the first stone”, was not in the original version, but was added centuries later. The original John 8 is a debate between Jesus and some Jews. In brief, Jesus calls the Jews who disbelieve him sons of the Devil, the Jews try to stone him, and Jesus runs away and hides.

3. Muhammad, quoted in Hadith of Bukhari, Vol 1 Book 8 Hadith 427: “May Allah curse the Jews and Christians for they built the places of worship at the graves of their prophets.” This quote is attributed to Muhammad on his death-bed as a warning to Muslims not to copy this practice of the Jews and Christians. It is one of several passages in the Koran and in Hadith that can give a scriptural foundation to Islamic anti-Semitism, including the assertion in Sura 5:60 that Allah cursed Jews and turned some of them into apes and swine.

4. Mark Twain, describing the Christian Bible in Letters from the Earth, 1909: “Also it has another name – The Word of God. For the Christian thinks every word of it was dictated by God. It is full of interest. It has noble poetry in it; and some clever fables; and some blood-drenched history; and some good morals; and a wealth of obscenity; and upwards of a thousand lies… But you notice that when the Lord God of Heaven and Earth, adored Father of Man, goes to war, there is no limit. He is totally without mercy – he, who is called the Fountain of Mercy. He slays, slays, slays! All the men, all the beasts, all the boys, all the babies; also all the women and all the girls, except those that have not been deflowered. He makes no distinction between innocent and guilty… What the insane Father required was blood and misery; he was indifferent as to who furnished it.” Twain’s book was published posthumously in 1939. His daughter, Clara Clemens, at first objected to it being published, but later changed her mind in 1960 when she believed that public opinion had grown more tolerant of the expression of such ideas. That was half a century before Fianna Fail and the Green Party imposed a new blasphemy law on the people of Ireland.

5. Tom Lehrer, The Vatican Rag, 1963: “Get in line in that processional, step into that small confessional. There, the guy who’s got religion’ll tell you if your sin’s original. If it is, try playing it safer, drink the wine and chew the wafer. Two, four, six, eight, time to transubstantiate!”

6. Randy Newman, God’s Song, 1972: “And the Lord said: I burn down your cities – how blind you must be. I take from you your children, and you say how blessed are we. You all must be crazy to put your faith in me. That’s why I love mankind.”

7. James Kirkup, The Love That Dares to Speak its Name, 1976: “While they prepared the tomb I kept guard over him. His mother and the Magdalen had gone to fetch clean linen to shroud his nakedness. I was alone with him… I laid my lips around the tip of that great cock, the instrument of our salvation, our eternal joy. The shaft, still throbbed, anointed with death’s final ejaculation.” This extract is from a poem that led to the last successful blasphemy prosecution in Britain, when Denis Lemon was given a suspended prison sentence after he published it in the now-defunct magazine Gay News. In 2002, a public reading of the poem, on the steps of St. Martin-in-the-Fields church in Trafalgar Square, failed to lead to any prosecution. In 2008, the British Parliament abolished the common law offences of blasphemy and blasphemous libel.

8. Matthias, son of Deuteronomy of Gath, in Monty Python’s Life of Brian, 1979: “Look, I had a lovely supper, and all I said to my wife was that piece of halibut was good enough for Jehovah.”

9. Rev Ian Paisley MEP to the Pope in the European Parliament, 1988: “I denounce you as the Antichrist.” Paisley’s website describes the Antichrist as being “a liar, the true son of the father of lies, the original liar from the beginning… he will imitate Christ, a diabolical imitation, Satan transformed into an angel of light, which will deceive the world.”

10. Conor Cruise O’Brien, 1989: “In the last century the Arab thinker Jamal al-Afghani wrote: ‘Every Muslim is sick and his only remedy is in the Koran.’ Unfortunately the sickness gets worse the more the remedy is taken.”

11. Frank Zappa, 1989: “If you want to get together in any exclusive situation and have people love you, fine – but to hang all this desperate sociology on the idea of The Cloud-Guy who has The Big Book, who knows if you’ve been bad or good – and cares about any of it – to hang it all on that, folks, is the chimpanzee part of the brain working.”

12. Salman Rushdie, 1990: “The idea of the sacred is quite simply one of the most conservative notions in any culture, because it seeks to turn other ideas – uncertainty, progress, change – into crimes.” In 1989, Ayatollah Khomeini of Iran issued a fatwa ordering Muslims to kill Rushdie because of blasphemous passages in Rushdie’s novel The Satanic Verses.

13. Bjork, 1995: “I do not believe in religion, but if I had to choose one it would be Buddhism. It seems more livable, closer to men… I’ve been reading about reincarnation, and the Buddhists say we come back as animals and they refer to them as lesser beings. Well, animals aren’t lesser beings, they’re just like us. So I say fuck the Buddhists.”

14. Amanda Donohoe on her role in the Ken Russell movie Lair of the White Worm, 1995: “Spitting on Christ was a great deal of fun. I can’t embrace a male god who has persecuted female sexuality throughout the ages, and that persecution still goes on today all over the world.”

15. George Carlin, 1999: “Religion easily has the greatest bullshit story ever told. Think about it. Religion has actually convinced people that there’s an invisible man living in the sky who watches everything you do, every minute of every day. And the invisible man has a special list of ten things he does not want you to do. And if you do any of these ten things, he has a special place, full of fire and smoke and burning and torture and anguish, where he will send you to live and suffer and burn and choke and scream and cry forever and ever ’til the end of time! But He loves you. He loves you, and He needs money! He always needs money! He’s all-powerful, all-perfect, all-knowing, and all-wise, somehow just can’t handle money! Religion takes in billions of dollars, they pay no taxes, and they always need a little more. Now, talk about a good bullshit story. Holy Shit!”

16. Paul Woodfull as Ding Dong Denny O’Reilly, The Ballad of Jaysus Christ, 2000: “He said me ma’s a virgin and sure no one disagreed, Cause they knew a lad who walks on water’s handy with his feet… Jaysus oh Jaysus, as cool as bleedin’ ice, With all the scrubbers in Israel he could not be enticed, Jaysus oh Jaysus, it’s funny you never rode, Cause it’s you I do be shoutin’ for each time I shoot me load.”

17. Jesus Christ, in Jerry Springer The Opera, 2003: “Actually, I’m a bit gay.” In 2005, the Christian Institute tried to bring a prosecution against the BBC for screening Jerry Springer the Opera, but the UK courts refused to issue a summons.

18. Tim Minchin, Ten-foot Cock and a Few Hundred Virgins, 2005: “So you’re gonna live in paradise, With a ten-foot cock and a few hundred virgins, So you’re gonna sacrifice your life, For a shot at the greener grass, And when the Lord comes down with his shiny rod of judgment, He’s gonna kick my heathen ass.”

19. Richard Dawkins in The God Delusion, 2006: “The God of the Old Testament is arguably the most unpleasant character in all fiction: jealous and proud of it; a petty, unjust, unforgiving control-freak; a vindictive, bloodthirsty ethnic cleanser; a misogynistic, homophobic, racist, infanticidal, genocidal, filicidal, pestilential, megalomaniacal, sadomasochistic, capriciously malevolent bully.” In 2007 Turkish publisher Erol Karaaslan was charged with the crime of insulting believers for publishing a Turkish translation of The God Delusion. He was acquitted in 2008, but another charge was brought in 2009. Karaaslan told the court that “it is a right to criticise religions and beliefs as part of the freedom of thought and expression.”

20. Pope Benedict XVI quoting a 14th century Byzantine emperor, 2006: “Show me just what Muhammad brought that was new and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached.” This statement has already led to both outrage and condemnation of the outrage. The Organisation of the Islamic Conference, the world’s largest Muslim body, said it was a “character assassination of the prophet Muhammad”. The Malaysian Prime Minister said that “the Pope must not take lightly the spread of outrage that has been created.” Pakistan’s foreign Ministry spokesperson said that “anyone who describes Islam as a religion as intolerant encourages violence”. The European Commission said that “reactions which are disproportionate and which are tantamount to rejecting freedom of speech are unacceptable.”

21. Christopher Hitchens in God is not Great, 2007: “There is some question as to whether Islam is a separate religion at all… Islam when examined is not much more than a rather obvious and ill-arranged set of plagiarisms, helping itself from earlier books and traditions as occasion appeared to require… It makes immense claims for itself, invokes prostrate submission or ‘surrender’ as a maxim to its adherents, and demands deference and respect from nonbelievers into the bargain. There is nothing-absolutely nothing-in its teachings that can even begin to justify such arrogance and presumption.”

22. PZ Myers, on the Roman Catholic communion host, 2008: “You would not believe how many people are writing to me, insisting that these horrible little crackers (they look like flattened bits of styrofoam) are literally pieces of their god, and that this omnipotent being who created the universe can actually be seriously harmed by some third-rate liberal intellectual at a third-rate university… However, inspired by an old woodcut of Jews stabbing the host, I thought of a simple, quick thing to do: I pierced it with a rusty nail (I hope Jesus’s tetanus shots are up to date). And then I simply threw it in the trash, followed by the classic, decorative items of trash cans everywhere, old coffeegrounds and a banana peel.”

23. Ian O’Doherty, 2009: “(If defamation of religion was illegal) it would be a crime for me to say that the notion of transubstantiation is so ridiculous that even a small child should be able to see the insanity and utter physical impossibility of a piece of bread and some wine somehow taking on corporeal form. It would be a crime for me to say that Islam is a backward desert superstition that has no place in modern, enlightened Europe and it would be a crime to point out that Jewish settlers in Israel who believe they have a God given right to take the land are, frankly, mad. All the above assertions will, no doubt, offend someone or other.”

24. Cardinal Cormac Murphy-O’Connor, 2009: “Whether a person is atheist or any other, there is in fact in my view something not totally human if they leave out the transcendent… we call it God… I think that if you leave that out you are not fully human.” Because atheism is not a religion, the Irish blasphemy law does not protect atheists from abusive and insulting statements about their fundamental beliefs. While atheists are not seeking such protection, we include the statement here to point out that it is discriminatory that this law does not hold all citizens equal.

25. Dermot Ahern, Irish Minister for Justice, introducing his blasphemy law at an Oireachtas Justice Committee meeting, 2009, and referring to comments made about him personally: “They are blasphemous.” Deputy Pat Rabbitte replied: “Given the Minister’s self-image, it could very well be that we are blaspheming,” and Minister Ahern replied: “Deputy Rabbitte says that I am close to the baby Jesus, I am so pure.” So here we have an Irish Justice Minister joking about himself being blasphemed, at a parliamentary Justice Committee discussing his own blasphemy law, that could make his own jokes illegal.

Finally, as a bonus, Micheal Martin, Irish Minister for Foreign Affairs, opposing attempts by Islamic States to make defamation of religion a crime at UN level, 2009: “We believe that the concept of defamation of religion is not consistent with the promotion and protection of human rights. It can be used to justify arbitrary limitations on, or the denial of, freedom of expression. Indeed, Ireland considers that freedom of expression is a key and inherent element in the manifestation of freedom of thought and conscience and as such is complementary to freedom of religion or belief.” Just months after Minister Martin made this comment, his colleague Dermot Ahern introduced Ireland’s new blasphemy law.


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  1. They should organize a huge rally in front of the Irish Parliament and have thousands of people screaming blasphemous statements in public view, and continue that daily until this stupid law and article of the Irish Constitution are repealed.

Stargate Studios Reel

Posted on January 2nd, 2010 at 7:54 by John Sinteur in category: News


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  1. What always amazes me is how well the actors can do in interactions with their “environment” when there is essentially nothing to relate to physically. Truly remarkable, I think. So much is done in front of the green screen these days compared to what used to be location sets.

  2. It was pulled from Youtube but you can see it at their own site

    http://www.stargatefilms.com/page.php?section=4&page=427