Tax Equalization
07-25-2007 | 04:20 PM
#31
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From: 767 FO
Everyone here seems to be using the HKG tax rate, however the people at the hub turn meeting said that we would be paying Chinese taxes not HKG. Something on the order of 51% vs. 17% in HKG. Not sure what that does to the numbers, just trying to point out any potential inaccuracies.
07-25-2007 | 05:01 PM
#32
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The company has come out and ADMITTED that equalization doesn't benefit everyone. They aren't being very forthcoming in telling us exactly who doesn't benefit. Your basic example makes my point that "equalization" generally benefits those in Paris and not those in Hong Kong.
07-25-2007 | 05:07 PM
#33
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Did the ALPA lawyers get to see that agreement before we opened the ballots?
Seems to me if we are negotiating an agreement with the company with taxation as a major issue, we should be privvy to the general costs of the taxation package to the company/individuals.
07-25-2007 | 06:02 PM
#34
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From: 767 Cap
I realize how it works. Was just just saying that if they give you an extra 6k to cover the taxes on the 12k you got already who pays the taxes on the 6k gross up? 
Kinda like if you drop an egg and it continues to fall half way to the ground does it ever hit the ground? or something like that!
Some humor..
Past...
07-25-2007 | 06:48 PM
#35
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From: 11 Capt
Was being humorous with this. Guess it wasn't obvious. No worries...
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07-25-2007 | 06:57 PM
#36
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Similar to when they closed the EWR Base and gave the ones that wanted it a paid move to MEM. While the move package was a good deal because they paid everything, ( house hint trips, realtor commisions, home inspections and complete movement of Household goods) the extra benny was taxed as income. While the company did give me some cash (1 months base salary) to cover the additional taxes) My taxes were higher that year. Called a Gross UP
07-25-2007 | 07:02 PM
#37
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From: 11 Capt
Actually a good question. I believe YOU will bear the xtra tax burden on the extra 6K the company paid on your behalf. Anything thing you get In your pocket or Paid to a 3rd party on your behalf will be taxed as income you received.
Just lie when the closed EWR and gave the ones that took it a paid move to MEM. While the move package was a good deal because they paid everything, the extra benny was taxed as income. While the company did give me some cash (1 months base salary) to cover the additional taxes)
My taxes were higher that year.
Just lie when the closed EWR and gave the ones that took it a paid move to MEM. While the move package was a good deal because they paid everything, the extra benny was taxed as income. While the company did give me some cash (1 months base salary) to cover the additional taxes)
My taxes were higher that year.
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
07-25-2007 | 09:29 PM
#38
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From: 767 Cap
Redeye,
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
Thank god I have no intention of bidding either FDA.
07-25-2007 | 09:42 PM
#39
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From: leaning to the left
Redeye,
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
Of course, I didn't see that in the "more tax equalization" page on PFC. Just standard industry practice.
Last edited by Busboy; 07-25-2007 at 09:47 PM.
07-26-2007 | 06:16 AM
#40
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From: 11 Capt
More than likely they are going to be able to buy a few years worth of "Scooby Snacks" with what they are saving on our LOA package.
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