Max Sawicky sawicky at
Thu Aug 3 11:00:37 PDT 2000

Another angle is channeling profits into employee defined-benefit pension funds that are not needed to pay benefits. The accumulation in the funds is not taxable to anybody, and the company reports the income in its annual report as profit. I suspect there are ways of pulling the money back out with reduced tax consequences as well. This is an issue in the current GE negotiations; it's known as "pension stuffing." I've been looking for information on this without much success. Any leads would be welcome.


New York Times - June 13, 2000 The Consequences of Corporate America's Growing Addiction to Stock Options


Microsoft and Cisco Systems, two of the nation's most profitable companies, are well on their way to owing nothing in federal income taxes on the money they have made so far this year. . . .

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