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Massachusetts Liberal

Observations on politics, the media and life in Massachusetts and beyond from the left side of the road.

Wednesday, June 20, 2007

The Two Americas

Hard to miss the contrast between these two stories in today's Globe.

Ron Rivera, a truck driver for Tweeter, loses his job and his severance pay when Tweeter declares bankruptcy. Although he agreed to stay on and help close some West Coast operations, the Chapter 11 filing will deprive him of most, if not all, of his severance package.
"Will they get some of the money? Yeah," said [Sean Gilligan, a bankruptcy lawyer at Gesmer Upgrove LLP , a Boston law firm.] "But if you get 10 percent of your salary and you didn't get it for a couple years, how much is that worth to you?"
Compare that to Stephen Schwarzman, head man of the Blackstone Group, a venture capital firm who is due for a $450 million payout -- and a $7 billion stake -- as a result of a public stock offering.

The tax implications are so egregious that two senators have proposed legislation to nix Blackstone's bid to pay only 15 percent on capital gains as opposed to the 35 percent corporate tax rate.

Assuming the bill ever sees the light of day, do you think it will match the 10 cents on the dollar Ron Rivera will get? And just how much more will you and I pay in taxes to enable Schwarzman to enjoy "stone crabs at $40 a claw, fine wines, and brass bands."

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2 Comments:

Anonymous Anonymous said...

I worked with Ronnie and am one of the 200 employees who are being screwed out of severance by Joe and Co. at Tweeter. The awful thing is alot of good people who spent many years with this company which was based on ethics and the Tweeter "Culture" were lied to at the end of the day. Tweeter never planned on fulfilling the severance obligation and one week after closing all the stores in California as well as other parts of the country they pull this. I am sure Joe will be fine with his millions but the little guy gets screwed in the end. I hope Ronnie can find a job soon, he did nothing wrong and none of us deserve this from Joe and Sandy.

June 20, 2007 10:10 PM  
Anonymous Suma Valluru said...

thats right...hope Ronnie finds a job...

cheers,
suma valluru
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http://www.getlawyeradvice.com/

July 05, 2007 2:47 AM  

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