* Why does Wall Street get all the juicy scandals? We’re jealous of our DealBreaker colleagues. [Dealbreaker]
* Larry Ribstein’s take: “it’s hard not to think that it’s really all about dispute a few weeks ago between [the NYT's Andrew Ross] Sorkin and Dealbreaker’s John Carney.” [Ideoblog]
* Are you in the top one percent of U.S. taxpayers ranked by adjusted gross income? And which states are home to the richest of rich taxpayers? [TaxProf Blog]
* “Would you trust a law professor to be President?” [Althouse]
* Speaking of law profs, they may boycott the annual AALS meeting, due to the hotel owner’s opposition to same-sex marriage. [National Law Journal via TaxProf Blog]
* An interesting interview of Fried Frank partner Jonathan Mechanic, a superstar of the real estate bar. [New York Observer]
* Russian judge: “If we had no sexual harassment we would have no children.” [Telegraph (U.K.)]
* Why does Wall Street get all the juicy scandals? We’re jealous of our DealBreaker colleagues. [Dealbreaker]
Debevoise & Plimpton has long been among New York’s most prestigious law firms. It’s also widely viewed as an excellent place to work.
In the past, Debevoise’s prestige has arguably outpaced its profits. It’s often ranked more highly on the Vault 100 than on the Am Law 100 (when ranked by profits per partner). In the most recent rankings, Debevoise was #13 on the Vault 100 and #20 on the Am Law 100 by PPP.
Perhaps that’s about to change. From Legal Week (via Law.com):
Debevoise & Plimpton has unveiled stellar financial results for 2007, with the New York law firm seeing both partner profits and fees climb by more than 20 percent over the last 12 months.
Profits per equity partner (PEP) at Debevoise rose by 26.5 percent from $1.81 million last year to a new high of $2.29 million. Global revenue, meanwhile, was up by 23.4 percent from $575 million in 2006 to $709.54 million.
A source who passed along this news added: “Although not mentioned in the article, several large investigations are the driving force behind these numbers.”
Of course, that’s not surprising. Thanks in large part to former U.S. Attorney Mary Jo White, internal investigations have long been a mainstay of Debevoise’s practice. They’re long-running and lucrative, since no company in deep doo-doo wants to look like it’s skimping on self-scrutiny. See, e.g., Siemens (aka Debevoise cash cow).
But how much cash will they get to keep? Discussion of a new tax proposal that will disproportionately affect partners at large law firms, after the jump.
- Ann Althouse, Blogging, Hillary Clinton, John McCain, Law Professors, Law Reviews, Law School Deans, Linda Greenhouse, Non-Sequiturs, Politics, SCOTUS, Supreme Court, Tax Law
* Linda Greenhouse to $300K! [New York Observer via ABA Journal]
* Duties of a law school dean: attend parties, appear at conferences, talk to alums. And don’t forget the herding of cats — aka law professors. [TJ's Double Play]
* Even law review editors screw up sometimes. “Constructive acceptance”? [Concurring Opinions]
* Who’d have thunk it? Sometimes blogging can help people. And stuff. [Legal Blog Watch]
* Ethan Leib dresses up as a giant chicken to teach Contracts, thereby guaranteeing ABA accreditation. [PrawfsBlawg]
* Orin Kerr points out online interviews “with eight of the nine current Supreme Court Justices (all but Souter) about legal writing, advocacy, and the process of deciding cases and writing opinions.” [Volokh Conspiracy]
* Ann Althouse on John McCain and being a “natural-born citizen.” [Althouse]
* Hillary to Russert: You can’t handle the truth! About my tax returns. [TaxProf Blog]
[Ed. note: Yesterday's guest post about how Barack Obama's tax plan might affect Biglaw associates, authored by Ted Frank, generated a record number of comments on ATL: 564 (and counting). It also generated lots of reaction throughout the blogosphere (links collected below). So we thought we'd invite Ted to do a follow-up.]
Here it is. Ted wrote it in response to the following reader email, which makes many of the arguments that surfaced in the 564+ comments. From an Obama defender:
I’m sorry, but you are losing your credibility by posting this false propaganda on Obama. Look at Obama’s website. It clearly states, “Asked About Raising the Cap, Obama said, ‘You Might Have the Equivalent of a Doughnut Hole’–NOT That He Would Completely Remove the Cap.” Obama “has stated in various venues that ‘his inclination… has been for a ‘donut’ where the uncapping would take place above some threshold income level — probably around $200,000 or $250,000′ his economic adviser Austan Goolsbee said in an email. A donut would protect a certain portion of income (e.g., between $100,000 and $200,000) from the payroll tax and could be phased in over decades.”
In addition, that “$34,000 paycut” in the post title is misleading. Even if all your assumptions were correct (which they weren’t), the after tax pay cut under Obama is < $20,000. I love your site, but please correct this ridiculous false article before you lose all credibility.
And now, without further ado, Ted Frank.
* * * * * * * * * *
First, as I show in the spreadsheet, a $20,000 tax increase is the equivalent of a $34,000 before-tax paycut for a New York City resident, which would have the same after-tax effect. The $34,000 figure is accurate: that’s just math. The Obama tax plan would have the same effect on a NYC fifth-year associate being paid market as a $34,000 paycut.
Obama has never said he will have a doughnut-hole, only that his SS tax could include a doughnut-hole. When Hillary Clinton attacked Obama at the November 15 Nevada debate for wanting to eliminate the cap, Obama didn’t say that the attack was incorrect; he defended the policy because eliminating the cap would only affect what he called the “upper class.” The press has accurately reported that Obama has also proposed eliminating the cap; even Obama’s own website links to a thinktank’s analysis of the benefits of a cap elimination.
It would be really easy for Obama to promise to include a “doughnut-hole” or to not eliminate the SS-tax cap. He certainly hasn’t been afraid to promise drastically expensive programs of new spending or even tax giveaways to large swaths of the population who aren’t paying much tax now.
But when it comes to Social Security, Obama is suddenly vague; when he does discuss details, it is to cite examples (e.g., Warren Buffett) that could not be accomplished without eliminating the cap entirely. And the only reason a politician acts that way is because he supports the more drastic, politically unpopular plan, but doesn’t want to get tagged with it before the election, and will say after the election “I only said I would ‘consider’ a doughnut-hole.”
How Barack Obama’s Tax Plan Will Affect You [Microsoft Excel file]
Additional discussion and links, after the jump.
[Ed. note: Today we bring you some "news you can use": a practical look at how political choices might affect your personal finances. This post is by Ted Frank, who blogs at Overlawyered.com and PointofLaw.com, and who has guest edited ATL in the past. Take it away, Ted.]
BigLaw lawyers love Obama. If one searches by law firm various databases on-line for campaign contributions, one sees an overwhelming sea of blue, and most of it to Obama.
But how will Obama affect BigLaw wallets? On Above the Law, we regularly see commenters threaten to abandon law firms for falling $5,000/year short of market. I therefore thought it worthwhile to examine the effects of Obama’s tax and spending plans on take-home pay.
We all know that Obama wants to end the Bush tax cuts. That is a 3% bump across the board to the bad old days when associates faced a marginal federal tax rate of 36%.
But the real hidden tax is that Obama plans to end the social-security tax cap. Right now, you may notice, sometime during the summer or early fall, your take-home pay suddenly goes up because they stop deducting FICA. Current law caps social security taxes: in 2008, the cap is at $102,000. Obama proposes to abolish this. That mid-summer bump will be no more: add about several thousand dollars to your annual tax bill.
But social-security taxes are not only on employees. The government also charges 6.2% to employers that you never see on your W-2s. But rest assured the partners see this, and will notice that the expense of keeping an associate has risen several thousand dollars a year when FICA taxes double and triple. Will they swallow that additional expense, or take it out of your bonus?
Find out, after the jump (or click here).
- Andrew Cuomo, Celebrities, Dan Markel, New York Times, Non-Sequiturs, Pets, Politics, Sex, Sports, Tax Law, Vicious Infighting
* The NYT’s official statement on L’Affaire Berenson. [Starkman & Associates]
* A slew of law school hypotheticals about sex with and between minors, triggered by Carl Stanley McGee, our Lawyer of the Day. [PrawfsBlawg]
* Second runner-up for Lawyer of the Day? And a punitive damages award of $33 million. Ouch. [How Appealing]
* Man saves dog; law student saves man. Congratulations to GW’s Jason Coates, our Law Student of the Day! [GW Hatchet]
* “Derek Jeter has romanced Mariah Carey, squired Jessica Biel, sweet-talked Scarlett Johansson — and now he’s made it to first base with the state taxman.” [TaxProf Blog]
* Wow, this is wild. Has Gary Crossen, a former federal prosecutor and partner at Foley Hoag, read too many John Grisham novels? [WSJ Law Blog]
* Speaking of white-collar criminal defense lawyers, more business may be headed their way, courtesy of Andrew Cuomo. [DealBreaker]
* You’ve got… male? [Reuters]
* Are you a Disgruntled Republican? Join the club — or buy a mug. [Zazzle]
- Art, Deaths, John Edwards, Michael Mukasey, Morning Docket, Old People, Politics, Rudy Giuliani, Sports, Tax Law, Torture, War on Terror
* “T.Owes.” [ESPN]
* Rebates to $500? [CNN]
* AG Mukasey won’t label waterboarding. [MSNBC]
* Sen. McCain wins Florida, Rudy to bow out. [New York Times; Washington Post]
* Federal inquiry into stolen artifacts expands. [New York Times]
* Margaret Truman, only child of President Truman and author of mysteries set at the Supreme Court and the FBI, RIP. [AP]
- Barack Obama, Civil Rights, Deaths, Election Law, Hillary Clinton, Malpractice, Morning Docket, Politics, Sports, Tax Law
* Top candidates turn to trial lawyers for support. [Washington Post]
* More recusal requests expected in WV Supreme Court. [WSJ Law Blog]
* Former NFL player’s wife files malpractice suit over surgery. [ESPN]
* Suffrage suffers in Mexico. [MSNBC]
* How to count primary delegates (and an explanation of the “superdelegates”). [New York Times; New York Times]
* “It’s just not realistic” to present major new initiatives, but the SOTU will still be on every channel tonight. White House speechwriters are not on strike. [CNN]
* Super-litigator Tom Barr of Cravath, RIP. [New York Times (death notice); WSJ Law Blog]
If you’re not already a member of Lateral Link, you can sign up through their website. Membership, which is free and confidential, allows you to learn about new legal opportunities as they become available. Successfully placed candidates will receive a $10,000 placement bonus.
Position Type / Location: Law Firm – Tax Associate (Washington, DC)
Position Description: The Washington D.C. office is seeking a mid-level tax associate to work on project finance transactions. This magic circle law firm makes The American Lawyer’s AmLaw 100 rankings. The firm’s practice areas include corporate, bankruptcy and restructuring, intellectual property, litigation, project finance, reinsurance and insurance, and tax. The successful candidate must have at least 3-6 years experience in partnerships, foreign tax planning, leveraged leasing, subchapter C and tax-exempt financing.
For more information, see job #7697 on Lateral Link.
Earlier: Prior Job of the Week listings (scroll down)
- Barack Obama, Bill Clinton, Football, Kids, Non-Sequiturs, SCOTUS, Securities Law, Sports, Supreme Court, Tax Law
* Does the Supreme Court’s Stoneridge decision give the “getaway drivers” of securities fraud a free pass? [OverHedged]
* Apparently Green Bay fans really like the Packers. [SI.com]
* Miss Loyola 2L? Meet Kirsten Wolf. [WSJ Law Blog]
* Did Barack Obama receive an illegal endorsement? [TaxProf Blog]
* Speaking of Obama, his minister had this to say about Bill Clinton: “He did the same thing to us that he did to Monica Lewinsky.” Can someone please remove the cigar from the national vajayjay? [Baltimore Sun]