Just thinking out loud...letting my mind explore the what if's and deep thoughts...

Curious....retro is much like a tax return. The funds are out on loan until collected at the end of the tax season. Wouldn't a management that is worth anything have already budgeted in the cost of retro when costing out a contract agreement? If so, if a "NO" prevails, wouldn't said funds still be available in the company coffers for the next time? Also, if the retro comes this year with a "YES", isn't it taxed as regular W-2 income vs. a bonus tax rate that would apply to it being paid out next year? Does ALPA get a different amount of said payments if its paid as W-2 vs. a "Bonus"....

 

It might be withheld at a higher rate than you'd like, but I have to believe retro is taxed as ordinary income no matter when you get the check.

 

Go ask Alice.

Spoken like a true artist.

 

Retro is always taxed as ordinary income. It might be withheld at a different rate but the end result is the same. You really don't want the retro paid next tax year along with a 21% raise and 20% plus profit sharing unless you feel the government needs even more tax revenue from you!

 

A couple things: Sending this back puts retro back into jeopardy. That is without question due to the precedent that UPS, WN, and FDX have set. My spider sense says that sending this back is going to be about a 2 year churn of awfulness with little to show for it. This is coming from a guy who strongly promoted sending 2012 and 2015 back.

Secondly, bonuses are not taxed at a different rate. They are withheld at a different rate. At the end of the day, all the money you've earned on your W2 is taxed in the various brackets all the way up to the final one you've ended up in. If you end up after your deductions 1 dollar into the 30% bracket, only that last dollar is taxed in the 30% bracket. AMT of course is a potential pain for us higher earners.

 

I think the company has budgeted for the entire thing....retro included.

The only thing they don't seem to budget for is bad fuel hedges.

 

I just spit my coffee out my nose. Thanks, qball.

 

Taking a break from doodling for the DPA?

I'm sure the costs associated with the retro payout are well known, which probably has something to do with the voting window for MEMRAT.

Would what be available next time? If we vote it down, there is no guarantee of anything in the next TA. We would be in NMB limbo for a third time, and the Negotiating Committee would have to be replaced. I have met Linda Puchala. She could just look over her glasses and tell us "retro wasn't important to you in 2016, so why should it be important to you in 2017?" We aren't going to get a lick of sympathy from anyone after we turn down a payday that is greater than the U.S. Median Household Income.

She could do that. How do you think she would react? I would also love to know how long you think it would take to reach a third TA. My prediction is 13 months.

I won't pretend to be a tax expert, but ALPA gets a straight 1.90%, doesn't matter how it is treated for tax purposes.

 

When she's 10 feet tall

 

Feed your head............