Category Archives: bailout

$20,000 Private Jet , When They Are Bankrupt

Watch

Advertisements

Leave a comment

Filed under bailout, Business, Economy, Ford, General Motors, GM, News, US

Hire , Fire and then hire again – It happens only in India

On Thursday evening Jet airways chief announced that he would be hiring all those employees again , who were fired only two days ago by his management . 

Here is a time-line of the events:
1. Jet and Kingfsher two major Indian airlines request for $1 billion from the government as bailout package
2. The Indian Government is not interested in such a deal and the request is put on hold .
3. Jet Airways and Kingfisher Airlines agree on a wide-ranging working alliance to help them battle slowing growth and high fuel costs.
4. Jet  fires 800 and announces another 1100 could get fired.
5. Naresh Goyal (jet airways chairman) announces that all sacked employees would be re-instated. “I apologize for all the agony you went through,” he told a news conference in Mumbai, adding that he could not bear to “see tears in their eyes”.
Mr Praful Patel (Civil Aviation Minister) said on the same day that “The airlines have sought a bailout package worth Rs 4,750 crore($1 billion) to tide over the crisis spawned by fuel costs and poor load factor.”If tomorrow no plane flies on the Indian skies, who is there to answer. There is a bad patch in the industry and it needs to be resolved,” he said.
In the coming days people will get to know that a bailout deal has been agreed upon by the government. Can the government afford to be unpopular during election year? i do not think so

So who turns out to be a looser in this :

1. Indian TaxPayer (as 1$ billion of the tax payer money would be used to bailout these companies)
And the winners are
1. Kingfisher Airlines
2. 800 Jet Employees
3. Jet Airlines
4. and  MNS , whose leader threatened on Wednesday that he would not allow Jet flights to operate in Maharashtra if the sacked employees were not reinstated

2 Comments

Filed under bailout, Business, Delhi, Economy, Election, Election 2008, India, Indian Politics, Media, Mumbai, News, Politics, Random, Travel

`Joe the Plumber,’ Obama Tax-Plan Critic, Owes Taxes

`Joe the plumber,” the Toledo, Ohio, man whose complaints about Barack Obama’s tax plan were highlighted by John McCain in the final presidential debate, owes the state of Ohio almost $1,200 in back income taxes.

According to records on file with the Lucas County Court of Common Pleas, the state filed a tax lien against Samuel J. Wurzelbacher for $1,182.98 on Jan. 26, 2007, that is still active.

Wurzelbacher was thrust into the national spotlight this week when he told Obama he worried that the Illinois senator’s proposals to roll back Bush administration tax breaks for Americans earning more than $250,000 would prevent him from buying a plumbing business that would earn between $250,000 and $280,000 a year.

McCain, an Arizona Republican senator, pointed to the exchange during the debate last night when he turned to the camera and said, “I will not stand for a tax increase on small-business income.” Directly criticizing Obama, he added, “what you want to do to `Joe the plumber’ and millions more like him is have their taxes increased and not be able to realize the American dream of owning their own business.”

Today, at a rally in Downingtown, Pennsylvania, McCain said “the real winner last night was `Joe the plumber.”’

On Oct. 12, as Obama was campaigning door-to-door in suburban Toledo, Wurzelbacher confronted the Democratic presidential nominee about his tax plan.

`American Dream’

“Do you believe in the American dream?” Wurzelbacher asked before asking about the tax increase. “I’m being taxed more and more for fulfilling the American dream.”

Wurzelbacher’s home telephone number is unlisted, and efforts to reach him by calling his neighbors and family were unsuccessful. Attempts to reach Wurzelbacher at the plumbing company where he works were also unsuccessful. The address on the lien and other records for him matched the address published by the Toledo Blade, which also noted the lien.

The state of Ohio places a lien on real property after several steps to try to collect a tax debt, according to John Kohlstrand, a spokesman for the Ohio Department of Taxation who said he couldn’t discuss any specific case.

Delinquency Notice

If a delinquency notice goes unheeded, the Department of Taxation issues a billing notice, Kohlstrand said. If that is ignored, a more formal assessment notice is sent. Failing to appeal an assessment or losing an appeal puts the debt into the hands of the state attorney general for collection. The attorney general typically sends a collection notice and simultaneously files a lien.

“The taxpayers may not necessarily know about the lien,” Kohlstrand said, although they would receive other notices.

In Wurzelbacher’s case, the lien indicated that the notice was sent to a previous address in Toledo.

Ray Ann Estep, section chief for revenue-recovery services for the Ohio attorney general, said Wurzelbacher’s lien was filed six months after the Department of Taxation certified the debt for collection.

“Unfortunately, sometimes people don’t resolve their debts as quickly as we would like them to,” she said.

Obama’s Plan

In addition to tax credits and a proposal that would allow Wurzelbacher to avoid paying capital-gains taxes if he ever sold the business he wants to acquire for a profit, Obama has proposed allowing the top two tax rates of 33 percent and 35 percent to revert to what they were during the Clinton administration, or 36 percent and 39.6 percent, respectively.

In 2007, the 33 percent bracket kicked in for taxable income exceeding $195,851.

Under Obama’s proposal, Wurzelbacher would face about $900 more in taxes if he netted $280,000 of income from his new business and had to pay an extra 3 percentage points on the amount over $195,851, said Gerald Prante, a senior economist at the Tax Foundation, a Washington research group that is examining both candidates’ plans.

“His average tax burden, the final bill he pays to the IRS isn’t going to go up much if he’s just making $280,000 a year,” Prante said. He would face higher marginal tax costs to expand the business beyond that, he said.

Not Taxable Income

It’s far more likely that the $280,000 Wurzelbacher told Obama he’d earn would be in the form of gross receipts and not taxable income, said Steven Bankler, a certified public accountant in San Antonio, who counts plumbers and other trade professionals as his clients.

By the time Wurzelbacher took proper business deductions, Bankler said, he’d be left with between $150,000 and $200,000 in taxable income and wouldn’t be affected by Obama’s proposed increase in the top rates.

Wurzelbacher might eventually have to pay more employment taxes under Obama’s plan to impose a rate of between 2 percent and 4 percent on wages over $250,000, Bankler said, but Obama has said that change wouldn’t take effect for a decade

Source- Bloomberg

1 Comment

Filed under bailout, Barack Obama, Business, Capitalism, Credit Crisis, Democrats, Economy, Election, Election 2008, Fact, John Mccain, Mccain, News, Palin, People, Politics, Random, Republican, Sarah Palin, US, US Government

Plumber makes $250,000 a year . Is that a joke?

Joe the plumber makes $250,000 a year whereas according to the Bureau of Labor Statistics, the mean annual wage for plumbers in the United States in 2007 was $47,350.

Why are these politicians calling him a plumber when in reality he is a businessman. I bet next they will next call Bill Gates an electrician.

1 Comment

Filed under bailout, Barack Obama, Business, Capitalism, Credit Crisis, Delhi, Democrats, Economy, Election, Election 2008, India, John Mccain, Mccain, Media, News, Palin, People, Politics, Random, Republican, Sarah Palin, US, US Government, Wallstreet

Meet Joe the Plumber

Meet Joe the Plumber who was mentioned 13 times in the opening minutes of third and final presedential debate.

 

 

I would still like to see who Joe Six Pack is.

Leave a comment

Filed under bailout, Barack Obama, Business, Democrats, Economy, Election 2008, John Mccain, Mccain, Media, News, Palin, People, Politics, Republican, Sarah Palin, US, US Government, Women

Bailout Pakistan , But Proceed with Caution

Prime Minister Syed Yousuf Raza Gilani on Tuesday said being a front line state in the war against terror; Pakistan has sacrificed more than any other country. 

Here’s why : –

1. Pakistan is the only country in the world which harbors terrorists and calls them freedom fighters.

2. Pakistan is the only country in the world which is accused of sheltering terrorist groups like Al-Qaeda,  Lashkar-e-Omar, Lashkar-e-Toiba, Sipah-e-Sahaba.

3. Abdul Qadeer Khan , a Pakistani scientist  widely regarded as the founder of Pakistan’s nuclear program who has confessed to having been involved in a clandestine international network of nuclear weapons technology proliferation from Pakistan to Libya, Iran and North Korea is supposedly under house arrest . He recently changed his statement and said that “President Pervez Musharraf forced him to be a “scapegoat” for the “national interest.” He denies ever traveling to Iran or Libya and claims that North Korea’s nuclear program was well advanced before his visit”.

4. Pakistani President recently acknowledged his country’s inability in combating terrorism. He said that terrorists are getting paid Rs 10000 whereas his government is only paying Rs 7000 to his soldiers.

The Pakistani economy is in shambles , inflation crossing 25% and forex reserves of less than 3 billion dollars .Mr Zardari told The Wall Street Journal that Pakistan needed a bail-out worth $US100 billion. Maybe this time the world provides money with a rider and makes Pakistan walk the talk.

 

Leave a comment

Filed under asif ali zardari, bailout, Business, Delhi, Democrats, Economy, Election, Election 2008, India, Indian Politics, Islamabad, Karachi, Mumbai, News, Pakistan, Politics, Republican, Terrorism, Terrorists, Uncategorized, US

AIG execs went on $500K retreat within days of bailout

After the bailout of AIG last month, the United States government effectively bought an 80% share in the company. That should have caused a fundamental change, you would think, in how the company was spending funds on compensation, bonuses and benefits.

But it doesn’t look like that’s what happened. The committee learned that shortly after the bailout went through, executives from AIG’s major U.S. life insurance subsidiary, AIG American General, held a week-long conference at an exclusive resort in California.

The resort is called the St. Regis Monarch Beach. … It’s very impressive. This is an exclusive resort. The rooms start, gentlemen, at $425 a night. Some are more than $1,200 a night. AIG spent nearly $500,000 in a single week at the at this hotel. Now, this was right after the bailout.Some of the charges  shareholders who are now U.S. taxpayers had to pay. Check this out.

AIG spent $200,000 for hotel rooms, and almost $150,000 for catered banquets. AIG spent  $23,000 at the hotel spa and another $1,400 at the salon. They were getting their manicures, their facials, their pedicures and their massages while the American people were were footing the bill. And they spent another $10,000 for leisure dining.

Leave a comment

Filed under Advertisment, AIG, bailout, Business, Capitalism, Democrats, Economy, Election, Election 2008, Entertainment, Fact, John Mccain, Mccain, Media, Mumbai, News, Palin, People, Politics, Republican, Sarah Palin, Stock Market, Uncategorized, US, US Government, Wallstreet