Word: pensionable
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...pension boom was directly related to the sky-high U.S. taxes. It began at the time the first whopping wartime tax bill was passed, in 1942. Up until then, pension plans were relatively rare; in the entire U.S. there were only 400. In the last two years pension plans have spread at the rate of over 200 a month, and in most of them, the corporations foot the bill...
...Schenck (1943 pay: $512,391), Vice Presidents Sam Katz ($370,139) and Edgar J. Mannix, along with five other executives who in addition to their salaries, shared Loew's profits, would level off at $200,000 each. The cash saved ($1,450,000) would go into a pension fund for Loew's 4,300 eligible employes, including Stars Spencer Tracy and Clark Gable...
...income after taxes would be reduced by only $25,000. Meanwhile Loew's would drop $45,000 into the pension fund for him. Thus a big pay cut now, when taxes are skyhigh, means only a small net reduction in his income...
...corporation the pension plan may be just as shrewd business policy. On its books, Loew's will write down the pension cost as $2,000,000 a year, in addition to the cash saved in salaries. The actual cost will be far less. Loew's contribution will be deductible for tax purposes. Net cost to Loew's: $400,000 a year...
Payment Deferred. If this was a scheme to avoid paying taxes, Congress had aided and abetted it. For 30 years. Congress has ruled that pension, payments, like wages, are deductible for tax purposes, and thus encouraged the establishment of pension plans. Thereby some abuses began, i.e., paying top executives deferred bonuses in the form of pensions. Congress tried to chink up these loopholes in the 1942 Revenue Act. Now in practice the Treasury must approve all plans (it approved Loew's) before tax deductions are granted. In effect, the corporations whose pension plans were avoiding taxes were doing what...