Digg Sells For Half A Million Dollars

[Zarathustra[H]]

Oh wait, the highest federal tax bracket (for income) is 35%, which would mean his take home of 200mil would be 130 mil..

Except that investment income is not treated as other income. Capital gains are taxed at a much lower rate.

My marginal tax rate (federal and state added up) is pretty close to 50%, and I'm pretty much your average college educated middle class earner.

Investment income - on the other hand - is taxed at a fraction of that, and if you have a good enough sleazy tax accountant, through loopholes like foreign shell accounts and shell corporations in low tax havens you can get it down to less than 5% like Mitt Romney...

 

[Zarathustra[H]]

How does that $200 million from Google look now, Digg? Fucking morons.

I don't think its clear that they were simply offered $200M and turned it down.

There was a lot more too it - as I recall - and they never reached an agreement.

Either way, they probably should have been a little more motivated too back then.

 

[dandirk]

Except that investment income is not treated as other income. Capital gains are taxed at a much lower rate.

My marginal tax rate (federal and state added up) is pretty close to 50%, and I'm pretty much your average college educated middle class earner.

Investment income - on the other hand - is taxed at a fraction of that, and if you have a good enough sleazy tax accountant, through loopholes like foreign shell accounts and shell corporations in low tax havens you can get it down to less than 5% like Mitt Romney...

You are I are in the same boat (again)... I was just commenting on another that said the 500k sale was better after taxes then Googles 200mil offer...

Also mentioned capital gains @15% but that is generally for long term I think, if he had gotten the 200mil in stock and sold it that year, I believe it would be considered normal income.

But I am not a tax guy, just a above avg joewith a salary, %50 take home, some 401k accounts. Know nothing about Bermuda like Romney (and probably every other politician) .

 

[Zarathustra[H]]

You are I are in the same boat (again)... I was just commenting on another that said the 500k sale was better after taxes then Googles 200mil offer...

Also mentioned capital gains @15% but that is generally for long term I think, if he had gotten the 200mil in stock and sold it that year, I believe it would be considered normal income.

But I am not a tax guy, just a above avg joewith a salary, %50 take home, some 401k accounts. Know nothing about Bermuda like Romney (and probably every other politician) .

Yep. I was just trying to point out that it could go even further

 

[mope54]

I was just commenting on another that said the 500k sale was better after taxes then Googles 200mil offer...

there was no 200 million dollar offer from Google...not in the way it's being used in this thread other than Zarathustra[H]

 

[dandirk]

there was no 200 million dollar offer from Google...not in the way it's being used in this thread other than Zarathustra[H]

Lol does it even matter??? The point is, the guy probably got a great offer and he turned it down and how he is taking a beating considering. He thought he was going to be a Zuckerberg but ended up being a Star Wars Kid (exaggerating).

http://techcrunch.com/2008/07/22/go...tions-to-acquire-digg-for-around-200-million/

OK it fell apart at 200mil... could have been done for 100mil or 50mil and still a complete bonehead move.

Also Digg ultimately sold for 16Mil if you include patients and such. Just read the 500k was just left over assets.