Whats Deductible and Whats Income.

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Latest post 01-31-2012 4:29 PM by Taxagent. 4 replies.
  • 01-30-2012 8:17 AM

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,165

    Whats Deductible and Whats Income.

    A short while ago the City of Philadelphia parted company with its new school superintendent for something over $900,000 on top of a $350,000 or so basic salary. . 

    To add to the adventure , she then turned around and got about $500 a week of unemployment

    A spokesman for the School said not to worry, school was self insured and this  UC cost was not visited upon taxpayers .

    Its hard to further from the truth. Philadelphia school is perhaps the largest recipient of state wide taxpayer aid in its funding formula  and due to a 1930 vintage Stirling law essentially the whole region pays worker taxes to Philadelphia not to ones hometown.

    But the real icing on the cake is that supposedly a hefty part of the exit package was funded by private "contributions" .

    I just gotta wonder how far a donor can stretch a point for benefit of a specific person and still slide it off on Federal tax return as a donation?

    I just gotta wonder if somebody recieves a major fee to depart if folks remembered to pay all the appropriate taxes on same?

    I just wonder if City paid into state pension fund for this adventure?

    (Her lawyer had previously been disbarred  and part of petition to be reinstated addressed personal  tax matters)

    In short is there any question that taxpayers did not take pipe again?

     



  • 01-30-2012 9:12 AM In reply to

    Re: Whats Deductible and Whats Income.

    Drew:
    is there any question that taxpayers did not take pipe again?

    No doubt in my mind.

    The taxpayers always take it in the shorts for government's corruption.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 01-31-2012 8:12 AM In reply to

    Re: Whats Deductible and Whats Income.

    No way to know how much the public paid for the "golden parachute" without examining the details. Very likely the public paid for at least some of it.

    Donations to the city that were meant expressly to benefit one individual likely are not tax deductible. The details of the contributions and the contract buyout would be important in determining the tax effect.

    Although Jack used the word corruption, nothing you mentioned indicates true corruption. Golden parachute arrangements are hardly novel or illegal—they are common in the corporate world after all. In order to attact top notch talent, it has become the norm to offer these kinds of provisions in contracts. While there are good arguments that the shareholders (or the public, in this case) get fleeced by these arrangements, until people get upset enough about them to demand change, top executives will continue to get these kinds of deals when they walk out the door.

  • 01-31-2012 9:17 AM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,165

    Re: Whats Deductible and Whats Income.

    Actually , from what I read, this went beyond any Golden Parachute provision found in her 5 year contract .

    Simply put, somebody engineered a private slush fund to sweeten her pot to go out.

    I have no doubt Mayor Nutter was able to jawbone some private funds and trim the direct use of some  school funds and her lawyer was able to sidestep paying City wage tax on same--not a trivial  % amount in Phila I

     

    In theory as a unit of government one should be able to find the terms of her contract  ---and I can find the terms  of my local superintendent's contract --I assure you there are all sorts of goodies in there that escape detection from 99.99% of community,  one of which allows a major spike of the state pension  

    My guess is that as a short term employee  she didn't have a contract formula which could  spike the PSERS benefit for her.

    In practice--personnel discussions disappear behind closed doors  and then sometimes get masked by nondisclosure agreements.

    Hey, whats a million here or there--the taxpayer has a free money tree sure to be tapped for 10's of millions to bail out a totally mismanaged school system right next door , Chester-Upland,  with kids as the unfortunate pawns .

    Nearby we have a superintendent that the Auditor General has held in a formal audit is not qualified to serve by law and the law bars him from being paid , and AG quotes a law which is crystal clear---so what do folks do--they pay him anyway and then he gets a nice state pension on the salary he as not entitled to be paid in first place. No wonder we're broke!

    UGH!

     



  • 01-31-2012 4:29 PM In reply to

    Re: Whats Deductible and Whats Income.

    Drew:
    Hey, whats a million here or there--the taxpayer has a free money tree sure to be tapped for 10's of millions to bail out a totally mismanaged school system right next door , Chester-Upland,  with kids as the unfortunate pawns .

    Chester has long been broke. It was one of the poorest places not just in PA, but in the nation, when I lived in PA and I doubt that it's changed much since.

    Drew:
    Nearby we have a superintendent that the Auditor General has held in a formal audit is not qualified to serve by law and the law bars him from being paid , and AG quotes a law which is crystal clear---so what do folks do--they pay him anyway and then he gets a nice state pension on the salary he as not entitled to be paid in first place. No wonder we're broke!

    One of reasons I left PA was that I hated its backwards, inefficient, wasteful, and sometimes corrupt political set up. The only place worse in that region of the country was NJ...

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