Originally Posted by
RedeyeAV8r
That is not how it was explained to me........I'll concede I fairly smart, but I am not a tax expert. I guess the point I was trying to make was a Pilot might be paying in some cases an addtional $2,000-$,3000 addtional in a tax burden, which is far better the $15,000-20,000
I think we can both agree that it is a necessary thing for us to have!
Well, they would have to, if the are using an "Assumed stateside" tax burden. If PW looks at your pay info, and decides your stateside bill would be $36K on MEM NB Cap salary (using my situation, even though I'm not bidding it) and that as a 75 Cap in CDG, the total is $70K, including the extra housing money and the exclusion, and everything. They will have to throw in enough cash (well above $34K) to pay the additional taxes in "after-tax money." Otherwise, as you said, you would owe taxes on that $34K. However, then your tax burden is more than your stateside burden, and tax equalization has failed. I think PW can figure out how much Fred has to pay to get you $34K in after-tax money to cover the extra tax burden. This gross-up process was also talked about by DW at the Germantown roadshow.
That's the way it worked at a previous carrier with a foreign domicile. Also, I will admit, this might not be a good deal for, say, a new-hire FO in HGK, who would probably do better without equalization. However, anyone who has been here a few years, is a Capt, or is in CDG will make out IMHO.