In court papers filed with the bankruptcy court, Jeffrey Parsons and his company, THR and Associates, are heavily in debt to a list of creditors that is almost 400 pages in length. One of the debts is to the Illinois Department of Revenue for more than $453 million in payroll taxes. At the meeting of creditors held in October, Parsons testified about the debts and assets of the company. He also answered questions about how the company had made so much money only to lose it all and … [Read more...]
Curt Schilling may give up personal items for company’s bankruptcy
November 5, 2012 by
Curt Schilling, former Boston Red Sox pitcher, personally guaranteed a portion of the debt for his company, 38 Studios. 38 Studios filed bankruptcy in June of this year listing over $150 million in debt with a little less than $22 million in assets. As part of the collateral for the business loans, Schilling pledged his personal assets including the bloody sock he wore during the 2004 World Series championship, World War II memorabilia and a hat believed to be worn by Lou Gehrig. To read … [Read more...]
New law would require more transparency for non-profit organizations
November 2, 2012 by
Using a loophole in the current law, some non-profit companies that receive public funds are not required to disclose the salaries of their executives. By forming a private for-profit management company to handle executive salaries, the non-profit avoids the disclosure requirements. In reports published by The Tribune, it was revealed that the salaries of some executives grew at rates much higher than salaries in the private sector. State Rep. Greg Harris has proposed legislation that would … [Read more...]
Chicago Tribune may have buyer as part of bankruptcy exit plan
November 1, 2012 by
As the Tribune Co. continues to struggle to find an acceptable exit plan for its long-running bankruptcy case, a potential buyer has set his sights on the Chicago Tribune. News Corp Chairman and CEO, Rupert Murdoch, is eyeing the Los Angeles Times and the Chicago Tribune as possible acquisitions. If the purchases were to go through, this would give News Corp markets in both Los Angeles and Chicago. However, any sale would need the approval of the bankruptcy court in addition to dealing with … [Read more...]
Estate tax changes could affect more people than ever before
October 31, 2012 by
The changes scheduled to take effect next year regarding estate and gift tax laws have many rushing to make changes. For example, an estate totaling $1 million will be subject to an estate tax of fifty-five percent. Even though this seems like a high amount to most people, it is not unheard of in larger cities where the cost of living is much higher than in other parts of the nation. The changes in gift taxes also have many families scrambling to find ways to gift property now to avoid … [Read more...]
Higher taxes on cigarettes could drive consumption down
October 30, 2012 by
Chicago’s cigarette tax is the second highest in the nation. Even though Mayor Rahm Emanuel said he would not raise taxes on most things, he specifically has not ruled out a higher tax on cigarettes. Even though a higher tax should mean more money for the city, higher taxes could result in smokers driving across state lines to get their cigarettes. Revenue from the sale of cigarettes has declined in past years and a higher tax could further this trend. However, a higher tax on cigarettes … [Read more...]
The events leading up to the largest bankruptcy in US History
October 29, 2012 by
Anton Valukas, the bankruptcy examiner assigned to the nations largest bankruptcy tells how it began. He also warns that the county came closer to disaster than most people understand. The most frightening revelation may be his opinion that we have not learned from the lessons taught by the Lehman Brothers bankruptcy. Valukas reported what he found in a 2,200-page report known as the Valukas Report. Now that it appears federal prosecutors will not pursue criminal charges, Valukas has … [Read more...]
Elected officials have created financial hardship for Illinois
October 26, 2012 by
The State Budget Crisis Task Force has finally released its report detailing the financial problems faced byIllinois. In part, the report states that elected officials focused more on “short-term goals over long-term growth and stability.” This focus has created substantial financial hardships for the state. Illinoishas one of the worst credit ratings and faces a budget deficit that numbers in the millions. The task force is recommending reforms to the tax system in addition to overhauling … [Read more...]
Landmark homes in Winnetka may lose tax benefits
October 25, 2012 by
If you own an historical home in Winnetkaand invest 25% of its fair market value to qualify it for ‘landmark’ status, you may be entitled to a tax break. According to the ordinance, homes that are granted landmark status receive a property tax assessment freeze for eight years. Thereafter, the property tax assessment is increased by increments over twelve years to reach its actual market price. This could change as the trustees ofWinnetkacontemplate repealing the ordinance while citing … [Read more...]
Illinois personal income tax hike may finally be felt by taxpayers
October 25, 2012 by
When the state legislature approved the income tax increase in January 2011, many feared they would lose much needed income. However, the federal payroll tax deduction worked to offset much of the hardship people feared from the state income tax increase. Right now, the state income tax increase from 3% to 5% is scheduled to remain through 2014. Unfortunately, the federal payroll tax reduction terminates at the end of this year. Unless it is extended, manyIllinoistaxpayers will see a … [Read more...]
