Slashdot Mirror

theodp writes "It seems $1 salaries are only for super-wealthy tech execs. The WSJ reports that CPA David Watson incurred the wrath of the IRS by only paying himself $24,000 a year and declaring the rest of his take profit. It's a common tax-cutting maneuver that most computer consultants working through an S Corporation have probably considered. Unlike profit distributions, all salary is subject to a 2.9% Medicare tax and the first $106,800 is subject to a 12.4% Social Security tax (FICA). By reducing his salary, Watson didn't save any income taxes on the $379k in profit distributions he received in 2002 and 2003, but he did save nearly $20,000 in payroll taxes for the two years, the IRS argued, pegging Watson's true pay at $91,044 for each year. Judge Robert W. Pratt agreed that Watson's salary was too low, ruling that the CPA owed the extra tax plus interest and penalties. So why, you ask, don't members of the much-ballyhooed $1 Executive club like Steve Jobs, Larry Ellison, Sergey Brin, Larry Page, and Eric Schmidt get in hot water for their low-ball salaries? After all, how inequitable would it be if billionaires working full-time didn't have to kick in more than 15 cents into the Medicare and Social Security kitty? Sorry kids, the rich are different, and the New Global Elite have much better tax advisors than you!"

theodp writes "What do you do for an encore after you've shown the world it's possible to build a $2,000 car? Ratan Tata, head of India's giant Tata conglomerate, now plans to build, 30 miles outside of Mumbai, 1,200 tiny apartments that will sell for $7,800 to $13,400 each. Sure, they're small (floor plans), but keep in mind that you can pay a quarter of a million bucks for a 250-sq.-ft. studio in the East Village. Time reports that Tata has had to beef up security to handle the rush of buyers who want to plunk down their $200 deposits (yes, that's two hundred dollars!). Who would've thought you could make IKEA homes look pricey?" The Businessweek.com article says that the apartments are aimed at someone making $6,000 to $10,000 per year (Time says $5,000). In Mumbai, a call center operator with 10 to 20 years of experience barely qualifies at $6,400 annually. 70% of the country's 1.2 billion people live on 1/20 as much.

theodp writes "Cross Halo with an exercise bike, and you get Expresso Fitness' S3, which lets you blow away dragons by squeezing handlebar-mounted triggers as you pedal hard through the Chinese countryside. Portfolio notes that a new generation of Wii-like workouts is hitting gyms and homes, with companies like GameRunner incorporating treadmills into First Person Shooters and Kickstart offering mini steppers and cycles for popular game systems."

Two weeks ago we discussed a proposal from music industry veteran Jim Griffin to implement a monthly fee from ISPs in exchange for the legal distribution of copyrighted music. Now, quinthar brings news that Warner Music Group has hired Griffin with the intention to make that proposal a reality. Warner wants Griffin to establish a collective licensing deal with ISPs that would let the ISPs stop worrying about their legal responsibilities for file-sharing while contributing to a pool of money (potentially up to $20 billion per year) that would be distributed amongst the music industry. "Griffin says that in just the few weeks since Warner began working on this plan, the company has been approached by internet service providers 'who want to discharge their risk.' Eventually, advertising could subsidize the entire system, so that users who don't want to receive ads could pay the fee, and those who don't mind advertising wouldn't pay a dime. 'I.S.P.'s want to distinguish themselves with marketing," Griffin says. "You can only imagine that an I.S.P. that marketed a 'fair trade' network connection would see a marketing advantage.'"

alphadogg notes a story over at portfolio.com claiming, and presenting evidence, that Comcast paid people off the street to take up room at yesterday's FCC hearing in Massachusetts. Comcast acknowledges that it paid people to hold places in line for its employees. But Save The Internet claims that people were bussed in by Comcast and then took up almost all available seats in the meeting room 90 minutes before the meeting opened, blocking scores of interested people from attending. Such tactics are not unheard of in Washington DC, but how appropriate are they in a regional meeting on a college campus?

Jake writes in with the story behind an explosive NYTimes scoop last week. It seems that the Times's pharmaceutical industry reporter, Alex Berenson, scored a page-one blockbuster when he revealed that Eli Lilly was looking to reach a settlement with federal prosecutors over the company's alleged inappropriate marketing of anti-psychotic drug Zyprexa. A settlement figure of $1 billion was mentioned. This scoop dropped into Berenson's inbox when a lawyer for one of Lilly's retained firms mis-addressed an email to a colleague with the same last name as that of the Times reporter. Some online observers are speculating that auto-complete is to blame, but this has not been confirmed.
Update: 02/08 17:19 GMT by KD : Jake writes in with an update: it seems that while Berenson did receive a misdirected e-mail from Pepper Hamilton, that e-mail did not contain a detailed description of the status of the Eli Lilly settlement talks. Berenson got his story from other sources.

ScaredOfTheMan writes "'The lawsuit, filed by brothers Cameron and Tyler Winklevoss, and Divya Narendra, accuses Zuckerberg, Facebook's 23-year-old C.E.O, of stealing the source code, design, and business plan for Facebook in 2003 when he briefly worked in the Harvard dorms as a programmer for their own fledgling social-networking site, now known as ConnectU. The plaintiffs have demanded that Facebook be shut down and that full control of the site — and its profits — be turned over to them.' I just wonder why they waited so long to sue? If he really stole their idea in 2003, why wait four years?"