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Intel says it plans to pay the fine and get the money back if it wins on appeal

The largest chipmaker on the planet -- Intel -- has appealed the EU ruling that fined it $1.45 billion for antitrust allegations. The massive fine is the largest ever imposed on a company by the EU and stemmed from what the EU calls abuse of its market dominant position against AMD.

The huge charge forced Intel to report a loss for the second quarter of 2009 after posting numbers that were higher than what Wall Street expected. Intel spokesman Chuck Malloy said, "Our position is that the decision was wrong and we said that from the day it was announced. It was wrong on many levels."

Mulloy also said that Intel plans to pay the fine and if it wins on appeal, it will get the money back from the EU. A spokesman for the European Commission said that the body "is confident that its antitrust decision against Intel is legally watertight."

Reuters quotes Intel spokesman Robert Manetta saying, "We believe the European Commission misinterpreted some evidence and ignored other pieces of evidence."

The fine was levied against Intel after an eight-year investigation concluded. Some analysts believe that the EU ruling could pressure American legal agencies to take action against Intel. Reuters reports that the FTC and the New York attorney general's office are both investigating Intel.



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RE: Give up, Intel
By Lifted on 7/22/2009 3:00:50 PM , Rating: 3
How did you come up with a 70% personal(?) income tax? I managed to come up with 48.4% + Social Security, and that's only on income over $372,950/year (SS only on the first 100k).

35% Federal
6.85% State
3.65% city
2.9% Medicare (self employed)

FICA gets more complicated, but it still comes nowhere close to 70% for the top bracket since SS is only for the first ~$100,000 and Medicare is 1.45%, or 2.9% if self employed.

If I add 12.4% for a self employed worker (which is more like 3% or less for the top bracket), 8.365% sales tax (who would spend all of their income on taxable items, and only in NYC?) and a 1.2% property tax, then I can manage to get to 70%, but that's using bogus numbers. This is also assuming you own your own house/condo and don't have a mortgage as that would bring the percentage down quite a bit.


RE: Give up, Intel
By porkpie on 7/22/2009 3:28:01 PM , Rating: 4
You're looking at the old rates. I'm talking about the new proposed tax increases, which will put the highest tax bracket at nearly 60% for most states:

http://online.wsj.com/article/SB124753106668435899...

That excludedes Social Security and Medicare. Add that in, and add in NYC's newly raised city tax, and you get a rate above 70%.


RE: Give up, Intel
By Lifted on 7/22/2009 6:01:46 PM , Rating: 2
I was actually referring to the current rates. You were talking about proposed rates. Thanks for clarifying.


RE: Give up, Intel
By Lifted on 7/22/09, Rating: 0
RE: Give up, Intel
By porkpie on 7/22/2009 7:06:34 PM , Rating: 2
Read again. The new 70%+ rate counts incomes taxes and social security/medicare. It does NOT count sales tax, property tax, and all the other taxes we get hit with.


RE: Give up, Intel
By Lifted on 7/22/2009 7:21:37 PM , Rating: 2
Sorry, read it again and realized it was because you lumped in Social Security which is not applicable over ~100k, and this tax rate is for earnings well over 300k. Thus it doesn't reach 70% without all the extras you just threw out, and it probably wouldn't reach 70% with those as they are variable based on so many different circumstances.


RE: Give up, Intel
By porkpie on 7/22/2009 9:28:07 PM , Rating: 2
Actually, it could be quite a bit higher than 70%, depending on your situation. If you're a small business owner, Obama's healthcare plan tacks on a whopping 8% surcharge if you fail to provide insurance for all your employees.

You're also wrong about property taxes (not that I counted them). Someone making $1M a year in NYC likely owns a apt or house worth around $10M. The tax bite on that is around $90K a year, which is another 9% alone. Don't forget the sales tax rate of 8.3% either. The total bite could hit 80% for some people. That's just sickening.

quote:
you lumped in Social Security which is not applicable over ~100k
Wrong again. Obama's new plan includes raising the cap on Social Security earnings. His original proposal was for people to pay up to $102K, then pay nothing from $102-$250K, then start paying again for everything above that.


RE: Give up, Intel
By Lifted on 7/22/2009 10:14:50 PM , Rating: 2
quote:
Someone making $1M a year in NYC likely owns a apt or house worth around $10M. The tax bite on that is around $90K a year, which is another 9% alone.


Sorry, I was actually taking you seriously there for a while.


RE: Give up, Intel
By porkpie on 7/22/2009 10:27:20 PM , Rating: 2
Sad to see someone resort to sarcasm when they can't offer a reasonable rebuttal.

Do you actually think someone making that much can't afford a residence costing 10X their annual salary?


RE: Give up, Intel
By thepalinator on 7/22/2009 11:22:51 PM , Rating: 2
I think your estimate is low if anything. A ten million dollar property in NYC city limits is going to cost more than 90 thousand a year in taxes.


"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home

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