News Round Up 2018

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jknezek said:
It is not a raise...and will be taxed at a higher level.
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sachilles said:
...As pointed out, it's taxed different...I understand why you wouldn't tax a bonus at a lower rate than base pay, but it does strike me as odd to not tax it at the same rate as normal income.
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jknezek said:
You'd have to dig into the tax law but it's probably because many people, especially in sales positions, are paid in bonuses. If you tax at the higher rate, as the government, you get a nice interest free loan until tax time rolls around and you issue a refund. Plus it prevents people from having huge tax bills, which is a significant cause of non-payment. Since you don't know what your annual bonus, or the sum of your bonuses might be, it is difficult to pay at the proper level throughout the year. Overpayment up front solves these problems.

As someone with a large bonus component to my pay, I both understand and lament the loan I'm forced to give our government.
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Taxes withheld are not taxes paid :)

Just to be clear - Bonuses are not TAXED at a higher rate than any other income. This is a common myth because the withholding on a bonus is typically higher than normal paychecks - but it's just that: Withholding...meaning come tax time you likely will get a portion of it back in the form a refund. Basically, they ignore your withholding allowances on your W4 and instead withhold the one-time payment rate of 25% (on the amount of federal taxable income). If you're in the 10% incremental tax bracket, 15% of that money is coming back to you in early 2019 OR you can adjust your W4 withholding allowances accordingly and get a larger paycheck all year long.
 
SouthFayetteFan said:
Taxes withheld are not taxes paid :)

Just to be clear - Bonuses are not TAXED at a higher rate than any other income. This is a common myth because the withholding on a bonus is typically higher than normal paychecks - but it's just that: Withholding...meaning come tax time you likely will get a portion of it back in the form a refund. Basically, they ignore your withholding allowances on your W4 and instead withhold the one-time payment rate of 25% (on the amount of federal taxable income). If you're in the 10% incremental tax bracket, 15% of that money is coming back to you in early 2019 OR you can adjust your W4 withholding allowances accordingly and get a larger paycheck all year long.
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Which is why I described it as an interest free loan. Exactly what it is for the government.
 
jknezek said:
Which is why I described it as an interest free loan. Exactly what it is for the government.
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Yeah - I saw you stating that but wanted to make an absolutely clear post. This is such a commonly misunderstood thing.

EDIT: I also think using the word "withholding" makes things much clearer.
 
SouthFayetteFan said:
Yeah - I saw you stating that but wanted to make an absolutely clear post. This is such a commonly misunderstood thing.

EDIT: I also think using the word "withholding" makes things much clearer.
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Very true. Ultimately, that money isn't received in the year it was given, but you do ultimately get taxed "appropriately".
 
MickeyMinnieMom said:
It's also relevant that some of the benefits to companies are one-time as well, as I understand it, like repatriation and full expensing of various capital expenditures. Makes sense to match the timing when paying out -- i.e. short-term income with short-term expense (bonus).

The lower corporate tax rate is the piece that lives on. I don't think it makes sense to expect businesses to pass the tax rate cut directly on to employees in perpetuity -- the idea is that this makes American businesses more competitive internationally (basically, right?). That should theoretically have multiple benefits over the longer term, some of which would presumably be passed directly & indirectly to employees.

To state the obvious, there was no requirement that any company pass ANY of the short or long term bottom line savings to employees. It's smart to (employee satisfaction, PR, etc.), but not required. I think most would admit that the amount being passed on to employees by US companies so far surpasses expectations. We don't have to be unhappy about everything, do we? :)

ETA: this obviously doesn’t include the fact that several nonpartisan groups project high percentages of Americans (though not all, obviously) will see a personal income tax cut in addition to anything their company decides to “share” with them. Wish that was longer-term than it is — will come up for renewal down the line, but there’d be obvious pressure to renew if enough people really do feel a cut. I’m a realist — some say pessimist ;) — but I can see plenty of reasons not to be down on short-term bonuses or this bigger picture right now.

With that, I return to your regularly scheduled “News Round Up” programming. :)
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Well, the corporate tax cut lives on as long as future law makers don't change it/undo it

That is why I have seen some companies say they are increasing salaries but only as long as tax cuts stay in effect
 
TheMaxRebo said:
Well, the corporate tax cut lives on as long as future law makers don't change it/undo it

That is why I have seen some companies say they are increasing salaries but only as long as tax cuts stay in effect
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Yes — always true wrt renewal, and good point! Safer for a firm to give a bonus than clawback a salary increase, though. I’d suspect that’s far less common a reaction to this (or any other) tax cut.
 
jlundeen said:
So, the Tower of Terror is the new park Icon for DHS? And is the name going to change soon? I've heard "Hollywood Adventure" more than anything else...
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I have to admit this is one more thing about DHS that annoys me. The centerpiece of the other three WDW parks is just so unbelievably iconic. So much effort went in to making the castle appear majestic, SSE is a feat of engineering, and the Tree of Life is an incredibly beautiful sculpture. These are instantly recognizable and amazing symbols of the power of each of the parks at WDW. And then there is DHS. Where the park icon is... won by default?

The Earful Tower was never a centerpiece. The Sorcerer's Hat was always meant to be temporary (and really blocked the Chinese Theater area architecture), and since we've removed them... well, the only remotely iconic type structure left is ToT. It's kind of annoying and Disney should have done better.
 
wareagle57 said:
What did they do with them before? I'm kind of shocked that has to be a law or regulated in any way. I assumed Disney has always thrown them away or done whatever they wanted to with them before.
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Google suggests that it may have been 90 days before they could do anything previously.
 
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