Posts filed under “Wages & Income”
- 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 . . .
In ’08 Downturn, Some Managed to Eke Out Millions
NYT, July 23, 2010
> 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
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
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
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
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
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
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
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
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