Taxing Issue
Here’s one corporate development that may increase support for controversial flat-tax plans being championed by such people as GOP presidential candidate Steve Forbes.
With the flurry of merger activity lately, more than a few golden parachutes are being deployed--and tax bills increased--as executives lose their jobs.
Take First Interstate Bancorp Chief Executive William E.B. Siart, for example. He’s losing his job at the Los Angeles bank because of the $11.6-billion takeover of First Interstate by San Francisco-based Wells Fargo & Co. that was announced last week.
Asked at a news conference about the hefty $4.57-million severance package he will get, Siart responded: “The federal government gets about half of that, and the remainder comes to me.”
Under a flat tax, Siart would make out considerably better than the half he says he’d get. With a plan similar to the proposal being urged by Forbes, Siart’s tax bill would probably be less than $800,000.
How the Game Is Played
The public spat between toy giant Mattel and potential takeover target Hasbro isn’t exactly fun and games. But a scan through public documents filed by both companies does make for some entertaining reading about various transactions.
Hasbro, for example, paid about $417,000 to lease manufacturing and warehouse space in Canada from a company called Central Toy Manufacturing, according to its most recent proxy statement. It turns out to be a real estate outfit 25% owned by the estate of its late chief executive, Merrill Hassenfeld.
Over at Mattel, the company’s proxy shows that a Barbie infomercial the company made involved paying $556,000 to a company called Electronic Catalogue Network for production fee and royalties based on sales tied to the program.
Electronic Catalogue turns out to be 50%-owned by producer Thomas Barad, husband of Mattel President Jill Barad.
Being a Louse Isn’t Cheap
When it comes to the cost of discreet living, Los Angeles doesn’t do very well.
The latest Real-Life Index from Smart Money magazine lists “the cost of a clandestine affair” in five cities, with Los Angeles generally coming out as the most expensive.
A “honeymoon suite” at a Motel 6 averages $43.31 in Los Angeles, according to the magazine, compared with $34 in Pittsburgh and $39.95 in Little Rock, Ark.
Lipstick removal from a shirt collar is $2.75 in Los Angeles, compared with $1.25 in Columbus, Ohio.
The cost of a private investigator to spy on a spouse is $1,400 a week compared to only $1,000 in Columbus, Ohio. A divorce filing is $182, more than double Pittsburgh’s $73 fee.
Take Your Pet With You
There’s a Sinatra credit card, an Elvis card and now one for Spot.
Pet food maker Ralston Purina plans to team up with MBNA America Bank to issue a credit card with a pet’s picture on it.
According to the companies, the card will have room for a 2-inch-square picture of a pet.
