Weekly Update

Greed at a Glance

A quick update on avarice in America and beyond

Last year’s congressional “fiscal cliff” deal raised the tax rate on ordinary income over $450,000 from 35 to 39.6 percent — and the tax on capital gains from 15 to 20 percent. On paper, taxpayers making over $2.6 million a year — America’s top 0.1 percent — should now each be paying about $232,000 more in federal taxes this year than last. In real life, many may not. The reason: Federal budget cuts have left the IRS, the Associated Press reports, with “fewer agents auditing returns than at any time since at least the 1980s.” IRS funding this year has dropped 7 percent. Last year the agency audited only 10.9 percent of taxpayers with over $1 million in income. This year’s audit rate, IRS chief John Koskinen acknowledged last week, will run lower. That will mean that “some people we should catch,” says Koskinen, “we’re not going to catch.”

Lee ScottThey pay Yahoo CEO Marissa Mayer the big bucks — $24.9 million last year — to make the big decisions. Mayer two years ago decided to hire Henrique De Castro to overhaul her stumbling company’s operations. De Castro, Mayer led everyone to believe, “had a unique set of highly valuable skills and experiences.” Fifteen months later, after still more corporate stumbling, Mayer gave Mr. Unique the heave-ho. De Castro is walking away, Yahoo has just disclosed, with $58 million in severance. Shareholders seem none too happy about that. Mayer’s answer? To calm down anger over Yahoo’s executive pay giveaways, she’s bringing on to the Yahoo board H. Lee Scott Jr., the retired Wal-Mart CEO. In his last year as Wal-Mart’s chief, Scott took home $30.2 million, over 1,500 times average Wal-Mart worker pay . . .

For generations, the Guardian reported earlier this month, “fine dining” has meant “haughty waiters, hushed rooms, starched table linen, and endless interruptions to pour wine and water.” But celebrity chefs these days are going casual. At the UK’s uber trendy House of Tides, for instance, Michelin-starred chef Kenny Atkinson has “dispensed” with “hovering waiters” — and has diners pouring their own wine.  And no fancy-pants dress code either. Atkinson doesn’t mind if people come dressed in jeans: “Their money is as good as anybody else’s.” Any diners in jeans will need, of course, to bring plenty of the money Atkinson so prizes. His tasting menu starts at $92.

This Greed at a Glance originally appeared in the Too Much weekly newsletter. To receive Too Much in your email inbox, just sign up here.

Discussion

2 comments for “Greed at a Glance”

  1. I like the way Greed at a Glance givs actual data on CEO salaries and severance pay. There’s no arguing with those facts.

    Posted by Theo Halladay | October 18, 2011, 9:10 pm
  2. Any idea who Joanne Margossian is? How did she make her loot? I’ve worked on that island and the upkeep is phenomenal.

    Posted by Dave Kenny | February 17, 2013, 9:51 am

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