Posts filed under “Wages & Income”

Analyzing 2008 Tax Returns

Floyd Norris digs up the dirt on US income, via the SOI Tax Stats of the IRS:

- In 2008, Americans reported $8.4 trillion in total income, down 4.6% 2007.

- Inflation adjusted, that is down 8.4% — the sharpest decline in total income since 1990.

- Biggest source of decline: Falls in Investment Income and sharp drops in Capital Gains.

- total wage and salary income was +1.9%; adjusted for inflation, it was -1.9%.

- Tax returns of $1 million plus fell by 22% to 321,294.

- 13,480 tax returns that reported income of more than $10 million — 36% smaller than the prior year.

- In the above $10m+ group, of the $400 billion in income was reported, only 19% came from wages and salaries, much less than cap gains (despite bad stock market).

- Tax returns with negative income (realized losses > than total income) leaped 31% to 2.5 million.

- 462 returns that reported some income from gambling, totaling 2.6 billion, or $5.6 million per return (average).

Fascinating stuff . . .

>


>

Source:
In ’08 Downturn, Some Managed to Eke Out Millions
FLOYD NORRIS
NYT, July 23, 2010  
http://www.nytimes.com/2010/07/24/business/economy/24charts.html

Category: Data Analysis, Wages & Income

The Old Pay System of Wall Street

> Last weekend, we discussed issues of Wall Street compensation and liability in placing a natural limit to excessive risk-taking: Delay Pay? Try Partnership Liability. This week, Floyd Norris received an email from a retired investment banker regarding what Wall Street compensation used to look like, and why that curtailed excessive behavior, and private gains,…Read More

Category: Bailouts, Legal, Regulation, Wages & Income

Delay Pay? Try Partnership Liability.

In the Sunday NYT, Yale Professor Robert Shiller discusses one of the recommendations of the Squam Lake Report — holding back some executive compensation to align their risk with taxpayers (Help Prevent a Sequel. Delay Some Pay.) Here is their recommendation: “The Squam Lake group recommends that companies be encouraged to withhold a good part…Read More

Category: Bailout Nation, Bailouts, Corporate Management, Regulation, Wages & Income

Positive Sign: Worker Mobility

One of the data points that has been getting some attention is the total withholding tax receipts, as reported by the IRS. According to the table below, it is down year over year. Some are interpreting this to contradict BLS, and likely means that the improving jobs data are bogus. Bill King specifically noted that…Read More

Category: Economy, Employment, Wages & Income

Consumer Finances

As per our prior discussion, let’s take a look at a nice set of charts showing the present state of Consumer Finances (all data thru Q1 2010): Balance Sheet, Savings Rate, Debt Service Ratio click for larger chart Source: (Left chart) JPM, FRB, J.P. Morgan Asset Management. Data includes households and nonprofit organizations. (Right charts)…Read More

Category: Credit, Economy, Markets, Wages & Income

American Pastime: OverPaying CEOs

There is a longish Sunday NYT article on CEO pay that I plan on reading. But before I get to it, I wanted to share some longstanding thoughts of my own on exec compensation. While there was a temporary drop in exec comp caused by the market crash, we still have structural compensation issues that…Read More

Category: Really, really bad calls, Wages & Income

Top 10 Hedge Fund Managers 2009 Salary

Here are the top 10 managers for 2009 in terms of net compensation. The majority  of this comp is based on performance fees, plus investment returns on their own money. The top 25 earners were paid a collective $25.3 billion. The lowest earner on the list earned a puny $350 million — a shanda! —…Read More

Category: Hedge Funds, Wages & Income

Payroll Withholding Taxes Surge in March

Matt Trivisonno shares with us some of the research he does at Daily Jobs Update regarding payroll withholding taxes. He notes that in March, there has been a very strong surge in withholding taxes. The amount is roughly equivalent to 300,000 new workers being paid $30,000 salaries.  Matt presume many of these jobs are Census…Read More

Category: Taxes and Policy, Wages & Income

Overpaid Execs Over-Emphasized Comp

Here are the key data points: • The average CASH payout for the top 25 execs at the 5 companies that were bailed out by Uncle Sam — AIG, Chrysler, GM, GMAC and Chrysler Credit — has been cut in half since 2008 to $469,777. • For the top earners at those companies, pay is…Read More

Category: Bailouts, Wages & Income

Taibbi: “The Best 18 Months of Grifting This Country Has Ever Seen”

I have a few quotes in Matt Taibbi’s no holds barred look at Wall Street’s profits and bonus culture. It is classic Taibbi, full of righteous indignation and fury over the bailed out banks quick transformation from near bankruptcy to record profits. He details 7 scams the various TARP recipients have pulled. Here’s a taste…Read More

Category: Bailouts, Corporate Management, Wages & Income