General Motors

[Paradoxium]

GM, Chrysler May Accept Bankruptcy to Receive Bailout

 

[Kelly]

How can they do that, seems like Bankruptcy fraud if they take the bailout money, knowing that bankruptcy comes.....hmmmm......doesn't sound kosher to me. I d idn't think you could legally take money like that even knowingly considering bankruptcy.

 

[dnno1]

GM, Chrysler May Accept Bankruptcy to Receive Bailout

The article says "as a last resort price" to get government bailout. Note that the Bloomberg article goes on the say that both Nancy Pelosi and the White House both agree that allowing them to go into bankruptcy is a bad idea. You are trying to be sensational here but this is an alternative that is not going to happen.

 

[Kelly]

LMAO, all he did was post an article, FROM Bloomberg I might add. How is that sensational?

 

[dnno1]

I know. And my calculation of the employer's share of the Social Security/Medicare Taxes (SST/MRT) reflected that. The employer's liability for SST/MRT is made by taking the employee's gross wages (their raw annual wage, as you call it) and multipling it by 7.65% (the combination of SST and MRT). $44,000 * 7.65% = $3,366.

So why did you add it back to the figure?

Their share of your SST/MRT tax liability is not part of your hourly rate, nor is it part of your salary. It is an additional expense that is solely borne by your employer. It is an economic cost to him, and it exists in addition to your gross salary that you are paid.

This is the (W2) box 1 raw annual wage with out any taxes taken out. Your assumption is wrong.

The $69/hour you quoted would not include the employer's share of SST/MRT, either . . . and, benefits would exist on top of this hourly rate that would add to the cost borne by the employer

The $69/hour figure is what GM quoted as the new negotiate wage, which includes laborers' wages, plus benefits, pensions and the cost of providing health care to more than 432,000 GM retirees. The $73.26/hour figure was back in 2006. The article also states that the new figure is what the rest of the Big 3 are using in their UAW deals. Besides this is within the prevailing range that other industries are paying. I think you are distorting the facts.

 

[dnno1]

LMAO, all he did was post an article, FROM Bloomberg I might add. How is that sensational?

Because the headline says that they may accept bankruptcy to receive bailout although the article says that it would a last resort. In addition, why did he enlarge the text and highlight it in red for if it wasn't sensationalism.

 

[Anita18]

In addition, why did he enlarge the text and highlight it in red for if it wasn't sensationalism.

Because Paradoxium always does that when there's a new development?

 

[dnno1]

Because Paradoxium always does that when there's a new development?

No. Sensationalism.

 

[Holiday]

Most posters will put a news story in large colored text.

 

[Addendum]

No. Sensationalism.

It's so sensational to get people to click on a goddamn link.

 

[dnno1]

Most posters will put a news story in large colored text.

I if you check the threads most posters either put up the standard hyperlink or do that and quote the entire article. Posting the headline in large red font is rare and (in this) case was done for the sensation.

 

[dnno1]

It's so sensational to get people to click on a goddamn link.

I didn't say that. I think it was the fact that the misleading head line said that GM and Chrysler would accept bankruptcy.

 

[Addendum]

It didn't say that.

The headline of the article at Bloomberg said "GM, Chrysler May Accept Bankruptcy to Receive Bailout"

may: used to express possibility

possibility: a thing or event that could happen

 

[dnno1]

It didn't say that.

The headline of the article at Bloomberg said "GM, Chrysler May Accept Bankruptcy to Receive Bailout"

may: used to express possibility

possibility: a thing or event that could happen

But withing the article it said "as a last resort". That means that, although it was considered, it is the furthest thing from their minds.

 

[Addendum]

The article never gave the impression that they WILL accept bankruptcy, or that they accept bankruptcy.

When tensions rise between 2 nations, war is a possibility even if it's the last thing on the minds of those nation's respective leaders. A journalist that is covering that tension and writes an article about the possibility of war isn't being sensational.

 

[Marx]

Most posters will put a news story in large colored text.

I if you check the threads most posters either put up the standard hyperlink or do that and quote the entire article. Posting the headline in large red font is rare and (in this) case was done for the sensation.

I post news articles the way that I do so they don't get overlooked in a thread that is moving too fast. News articles are great conversation starters.

 

[Anita18]

No. Sensationalism.

I said that Paradoxium does when there are new developments. If you look at his past posting habits, he's always done that. Not many SHHers do, but he personally does. That's how I always know it's a Paradoxium post.

 

[Anita18]

LOL Jon Stewart says to give GM the bailout since banks got a whole lot more and the feds aren't even tracking the money.

"At least when Detroit loses money, we get a car! Wall Street doesn't even SELL ANYTHING!"

 

[Handsome Rob]

So why did you add it back to the figure?

Because the employer's share exists in addition to anything you see on your pay stub. I didn't add anything back. I put it there in addition, because that is exactly what it is and how it is handled.

This is the (W2) box 1 raw annual wage with out any taxes taken out. Your assumption is wrong.

No, this is where (I don't mean to sound arrogant, here) I understand taxation better than you do. SST and MRT are handled this way according to law: 50% of the total tax liability is borne by you. When you receive your W2 for 2008, you'll see in Boxes 4 and 6 your gross wages times a net of 7.65%. This is one reduction of your gross pay in order to get to your net pay. So, the $44,000 employee will see a total of $3,366 in those two boxes. In essence, for your own personal accounting, the $3,366 is an expense to you. It never shows on the company books--only your gross wage does. The $400 a month you pay for health insurance is the same way.

Now, what you will not see is the employer's 50% of the SST/MRT liability. They also pay $3,366. This expense is on their company books, along with your gross wage of $44,000 and the half of your health insurance premium they pay for you of $4,800. So, employee DNNO has a total of $44,000 + $3,366 + $4,800 in expense associated with employing him, which is a total of $52,166. Assuming these are the only expenses, $52,166 is the cost of employing you to the company.

The $69/hour figure is what GM quoted as the new negotiate wage, which includes laborers' wages, plus benefits, pensions and the cost of providing health care to more than 432,000 GM retirees. The $73.26/hour figure was back in 2006. The article also states that the new figure is what the rest of the Big 3 are using in their UAW deals. Besides this is within the prevailing range that other industries are paying. I think you are distorting the facts.

I'm mistaken, here. I thought (without reading the article) that the $69/hour was the hourly pay rate to the employee, not the labor cost. I stand corrected.

 

[Handsome Rob]

Robbie dropp'n some science!!!

Word.

 

[BlackLantern]

early word today is that the Hearing Committee is not convinced....

 

[Marx]

early word today is that the Hearing Committee is not convinced....

I'm finding it interesting that the money being asked for keeps increasing.

 

[Addendum]

I'm finding it interesting that the money being asked for keeps increasing.

Guess they don't know how to haggle

 

[Kelly]

Because the headline says that they may accept bankruptcy to receive bailout although the article says that it would a last resort. In addition, why did he enlarge the text and highlight it in red for if it wasn't sensationalism.

If you notice when people post articles they sometimes do that around here.....


Now was the media using a teaser for a headline? Yeah, they do that all the time......

 

[Paradoxium]

The article says "as a last resort price" to get government bailout. Note that the Bloomberg article goes on the say that both Nancy Pelosi and the White House both agree that allowing them to go into bankruptcy is a bad idea. You are trying to be sensational here but this is an alternative that is not going to happen.