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View Diary: Daily Kos Elections Morning Digest: 6/30 (220 comments)

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  •  WI-Sen: On deferred comp (0+ / 0-)

    Usually how deferred compensation works is an employee defers salary he earned in a calender year to a later date to defer the taxes he would owe on the money until the date he actually recieves it.

    So if an employee earns $200,000 he might only take $100,000 in pay this year and defer the other $100,000 for a later date. The company would then pay the employee interest on the defered comp. So a $100,000 deferred today might pay the employee $200,000 10 years from now.

    So if Johnson was just getting the money he earned in previous years that he deferred paid to him now before he enters the Senate then its really not a big deal.

    Chances are in his deferred comp package there was some sort of provision to pay out the deferred comp upon retirement from the company which he did to become a US Senator.

    As for the $10 million deferred comp matching the $9 million out of pocket he spent it only adds up if you neglect including the taxes Johnson owns on the $10 million. He has to pay 35% federal tax, 7.75% WI State income tax and 1.45% Medicare Tax so in reality he's probably only keeping $5.58 million of it.

    Besides if he really wanted to be a crook he could have just loaned himself the $9 million he spent and then gone out and raised that money from private donors, PACs and Special Interest groups and paid himself back with interest!

    I dont think there is much of a story here.

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    by izengabe on Thu Jun 30, 2011 at 10:44:50 AM PDT

    •  Except (2+ / 0-)
      Recommended by:
      DCCyclone, MichaelNY

      He's refusing to show anyone his deferred compensation agreement, leading people to suspect he's being loosey-goosey with things, which is both a tax law and an election money no-no. (Since it's a privately held company that he controls, this apparently isn't that uncommon, but an elected official shouldn't be playing these sorts of games.)

      •  Yeah, he's refusing to answer questions (1+ / 0-)
        Recommended by:
        MichaelNY

        If that explanation was it, or something equally innocent, then he would just say so.

        But he's clammed up and won't talk.  And that's strange.

        43, male, Indian-American, married and proud father of a girl and a boy, Democrat, VA-10

        by DCCyclone on Thu Jun 30, 2011 at 12:42:05 PM PDT

        [ Parent ]

    •  What a shock (2+ / 0-)
      Recommended by:
      itskevin, MichaelNY

      That you don't think there's much of a story here. There's no written agreement about the alleged deferred compensation.

      Political Director, Daily Kos

      by David Nir on Thu Jun 30, 2011 at 08:47:22 PM PDT

      [ Parent ]

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