wizpal
06-05 05:06 PM
A very simple, dumbed down calculation to see which one trumps the other, buying or renting:
1. Home Cost: $300,000
2. Down: $ 30,000 (10% of 300k)
3. Mortgage: $270,000
4. Mortgage Interest/yr: $ 13,500 (5% of 270K)
5. Tax, Insurance, Maintenance /yr: $ 9,000 (3% of 300K)
6. Returns on Downpayment otherwise/yr: $ 3,000 (10% of 30K)
7. Rent on a similar home/yr: $ 18,000 (1.5K/month)
8. Equity/yr: $ 15,000 (5% of 300K)
9. Savings on tax deductions/yr: $ 4,050 (30% bracket, $13.5K interest)
I'll take a home appraised and bought for 300K for my example. The numbers are basically self explanatory. Contrary to popular claim among those who are pro renting, I don't think I pay more than 3% for tax, insurance and maintenance combined (item# 5). Of course, I was wise enough to buy a home in good condition. But that number will change as the home gets older. Maintenance should not include any upgrades that you do, which is basically only "gravy" and based on owner's discretion. Item# 6; I am going with the average returns if you invested in S&P 500. Item# 7; is what a similar 300K home costs to rent. Item# 8; I have only taken 5% growth which is I think under normal market conditions is the growth you would see on your home. The principal payment has not been accounted for yet. I'll do it later.
Situation Rent:
If you rent, then your expense per year is item# 7 minus item# 6 = $15,000.
Of course, your capital of $30,000 is still earning compounded returns.
Situation Own:
Your expense is item# 4 + item# 5 - item# 9 - item# 8 = $3,450.
As I mentioned in the first line, this is a dumbed down cost comparator. There are many loopholes that can be plugged. All comments are welcome.
Your analysis is so spot on except for item #8 and item # 9. I have a question though.. The example you have given suits my scenario so well. I am planning to buy a house (310k ) very soon. The loan offers I have from my lender has interest rates pretty much the same for both 10% down payment and 20% down payment, 5.0 with 20% and 5.25 with 10% down payment. I can down pay 10% right away and the other 10% is also available in a risk free(can withdraw without penalty) cd which yield me a return of 3.5% . So which is better for me 10% or 20% down pay. thanks in advance.
As for buying or renting..it is more of a personal choice - to me, buying a house has tangible benefits over renting.. like a sense of entitlement to call some place ur true home and most likely a good enviroment for raising the kids. Life has phases like education, marriage, kids, job, etc..Now that I am into my 30's, I would like to see
what it feels like to have owned a home.
1. Home Cost: $300,000
2. Down: $ 30,000 (10% of 300k)
3. Mortgage: $270,000
4. Mortgage Interest/yr: $ 13,500 (5% of 270K)
5. Tax, Insurance, Maintenance /yr: $ 9,000 (3% of 300K)
6. Returns on Downpayment otherwise/yr: $ 3,000 (10% of 30K)
7. Rent on a similar home/yr: $ 18,000 (1.5K/month)
8. Equity/yr: $ 15,000 (5% of 300K)
9. Savings on tax deductions/yr: $ 4,050 (30% bracket, $13.5K interest)
I'll take a home appraised and bought for 300K for my example. The numbers are basically self explanatory. Contrary to popular claim among those who are pro renting, I don't think I pay more than 3% for tax, insurance and maintenance combined (item# 5). Of course, I was wise enough to buy a home in good condition. But that number will change as the home gets older. Maintenance should not include any upgrades that you do, which is basically only "gravy" and based on owner's discretion. Item# 6; I am going with the average returns if you invested in S&P 500. Item# 7; is what a similar 300K home costs to rent. Item# 8; I have only taken 5% growth which is I think under normal market conditions is the growth you would see on your home. The principal payment has not been accounted for yet. I'll do it later.
Situation Rent:
If you rent, then your expense per year is item# 7 minus item# 6 = $15,000.
Of course, your capital of $30,000 is still earning compounded returns.
Situation Own:
Your expense is item# 4 + item# 5 - item# 9 - item# 8 = $3,450.
As I mentioned in the first line, this is a dumbed down cost comparator. There are many loopholes that can be plugged. All comments are welcome.
Your analysis is so spot on except for item #8 and item # 9. I have a question though.. The example you have given suits my scenario so well. I am planning to buy a house (310k ) very soon. The loan offers I have from my lender has interest rates pretty much the same for both 10% down payment and 20% down payment, 5.0 with 20% and 5.25 with 10% down payment. I can down pay 10% right away and the other 10% is also available in a risk free(can withdraw without penalty) cd which yield me a return of 3.5% . So which is better for me 10% or 20% down pay. thanks in advance.
As for buying or renting..it is more of a personal choice - to me, buying a house has tangible benefits over renting.. like a sense of entitlement to call some place ur true home and most likely a good enviroment for raising the kids. Life has phases like education, marriage, kids, job, etc..Now that I am into my 30's, I would like to see
what it feels like to have owned a home.
wallpaper David Cook – #39;The Last
HawaldarNaik
12-26 07:48 PM
I like Amma's post, pretty good, well thought out and i stand corrected, in my earlier remarks. Good Post Amma indeed...
learning01
05-24 10:20 AM
I had same thoughts today, as I did a few months ago in my post in this forum.
Let's ignore quoting Lou here (don't quote the devil). Let the Ad industry be happy with him. His audience reach has climbed from 400k to 900k because of his immigration rant. I guess he will land with a thud once this dust settles down.
He is just using this to play illegals vs legals. If you watch his lousy program, he is constantly ranting that this CIR bill will increase immigration by 100 million plus in the next few years. Some time back he also said that the CIR is a covert operation to increase H1Bs and legal immigration, not just about illegal immigrants. You can tune out what Lou says, he's doing what he can to improve his ratings.
Let's ignore quoting Lou here (don't quote the devil). Let the Ad industry be happy with him. His audience reach has climbed from 400k to 900k because of his immigration rant. I guess he will land with a thud once this dust settles down.
He is just using this to play illegals vs legals. If you watch his lousy program, he is constantly ranting that this CIR bill will increase immigration by 100 million plus in the next few years. Some time back he also said that the CIR is a covert operation to increase H1Bs and legal immigration, not just about illegal immigrants. You can tune out what Lou says, he's doing what he can to improve his ratings.
2011 The Last Goodbye
logiclife
04-07 12:33 AM
Desi consulting comapanies will not be affected. Consider this, if this bill becomes you can't transfer Visa and stick to the same employer. They can pay whatever they feel like paying (may be $7 per hr) and abuse the way they want. we will continue to extend the Visa and work as slaves thinking that this will get over one day like the Green card mess.
They will earn more with less people and buy all the new model cars and houses everywhere in US.
This is our problem and we have to fight for our good.
You are wrong, see my post above. Even if you stay at same employer, your H1 wont be extended if you file for extension. If extension fails, its goodbye for employee and loss of employee and revenue for employer.
EVERYONE LOSES.
They will earn more with less people and buy all the new model cars and houses everywhere in US.
This is our problem and we have to fight for our good.
You are wrong, see my post above. Even if you stay at same employer, your H1 wont be extended if you file for extension. If extension fails, its goodbye for employee and loss of employee and revenue for employer.
EVERYONE LOSES.
more...
panky72
08-07 09:17 PM
A boy and his father (new immigrants in Canada), were visiting a shopping centre. They were amazed by almost everything they saw, but especially by two shiny, silver walls that could move apart and back together again. The boy asked his father: "What is this, Dad?" The father (never having seen an elevator) responded: "Son, I have never seen anything like this in my life, I don't know what it is."
While the boy and his father were watching wide-eyed, an old lady in a wheel chair rolled up to the moving walls and pressed a button. The walls opened and the lady rolled between them into a small room. The walls closed and the boy and his father watched small circles of lights with numbers above the walls light up. They continued to watch the circles light up in the reverse direction. The walls opened up again and a beautiful and attractive 24-year-old woman stepped out.
The father shouts to his son: "GO GET YOUR MOTHER!!!":D
While the boy and his father were watching wide-eyed, an old lady in a wheel chair rolled up to the moving walls and pressed a button. The walls opened and the lady rolled between them into a small room. The walls closed and the boy and his father watched small circles of lights with numbers above the walls light up. They continued to watch the circles light up in the reverse direction. The walls opened up again and a beautiful and attractive 24-year-old woman stepped out.
The father shouts to his son: "GO GET YOUR MOTHER!!!":D
sledge_hammer
06-25 08:04 AM
I agree with you 100%. These guys here are all getting worked up as if the world will come to an end in 2 years and it is unreasonable to think beyong 2011. A regular investor like us, someone w/ a job, one who saves in the bank, and/or dollar cost averages in a 401(K), should never think short term.
Let's see 10 years from now who will be in a better position - the guy who owned a home or a guy that is renting.
Of course, some guys will start complaining about GC, but then other posts here are claiming that regardless of GC, buying a house now is dissasterous.
Why are be debating 3 - 4 years rent vs own? As the subject indicates "long" term prospects of buying a home..we of all the ppl should know the meaning of the word "long" based on our "long" wait for PD (which I think should be renamed to retrogress date because I see nothing priority about it)..the point being lets debate 10 years rent vs own..as against 3-4...I think over a 10 year timeline the buyers would come out ahead of the renters..maybe not in CA but in other states that's quite likely..
Let's see 10 years from now who will be in a better position - the guy who owned a home or a guy that is renting.
Of course, some guys will start complaining about GC, but then other posts here are claiming that regardless of GC, buying a house now is dissasterous.
Why are be debating 3 - 4 years rent vs own? As the subject indicates "long" term prospects of buying a home..we of all the ppl should know the meaning of the word "long" based on our "long" wait for PD (which I think should be renamed to retrogress date because I see nothing priority about it)..the point being lets debate 10 years rent vs own..as against 3-4...I think over a 10 year timeline the buyers would come out ahead of the renters..maybe not in CA but in other states that's quite likely..
more...
suavesandeep
06-24 11:08 AM
IMHO, It does not matter what your status in this country is. Or how much you make and all other parameters you need to consider while buying your primary residential home. If you are in the home flipping business please ignore the post.
There is too much data out there which says housing will go down for at least another year, and will then stay flat for a long time.
I know home is not an investment. But buying something when you know its gonna lose value just does not make sense even with all the credits + low interest rate out there. For me the most important thing is the total principal you pay to buy the home. Everything else are cheap gimmicks. Its like a car salesman saying you monthly payment for this car is only $200, but wait you will be paying this $200 for the next 10 years instead of 5. Or a Bank saying you get $50 to open an account etc. Also as others pointed out even in 2004/2005 there was enough data being floated that the housing bubble will crash, but i guess lot of people just ignored it.
If you need a house for luxury, Go ahead and rent one for the next couple of years. Not sure why people think renting restricts them to only small apartments. I am pretty sure renting a house in today's market will be lot cheaper than buying. I am currently renting a home and very happy in it.
Also consider that housing market is not as volatile as the stock market. So once the correction is complete it will take a long time for the appreciation curve to kick in. So timing the housing market dynamics would be different compared to the stock market.
There is too much data out there which says housing will go down for at least another year, and will then stay flat for a long time.
I know home is not an investment. But buying something when you know its gonna lose value just does not make sense even with all the credits + low interest rate out there. For me the most important thing is the total principal you pay to buy the home. Everything else are cheap gimmicks. Its like a car salesman saying you monthly payment for this car is only $200, but wait you will be paying this $200 for the next 10 years instead of 5. Or a Bank saying you get $50 to open an account etc. Also as others pointed out even in 2004/2005 there was enough data being floated that the housing bubble will crash, but i guess lot of people just ignored it.
If you need a house for luxury, Go ahead and rent one for the next couple of years. Not sure why people think renting restricts them to only small apartments. I am pretty sure renting a house in today's market will be lot cheaper than buying. I am currently renting a home and very happy in it.
Also consider that housing market is not as volatile as the stock market. So once the correction is complete it will take a long time for the appreciation curve to kick in. So timing the housing market dynamics would be different compared to the stock market.
2010 David Cook#39;s quot;The Last
nogc_noproblem
08-28 10:09 PM
Pray for Wisdom:
A PRAYER Dear Lord,
I pray for Wisdom to understand my man;
Love to forgive him;
And Patience for his moods.
Because, Lord, if I pray for Strength,
I'll beat him to death.
AMEN
A PRAYER Dear Lord,
I pray for Wisdom to understand my man;
Love to forgive him;
And Patience for his moods.
Because, Lord, if I pray for Strength,
I'll beat him to death.
AMEN
more...
Macaca
02-22 11:49 AM
Hey Chinese! can we have more of the following here (http://www.washingtonwatch.com/bills/show/110_SN_9.html#commentform).
I am almost 7 years in this country and have paid hundred of thousands of dollars in payroll taxes, and now stuck with the EB priority date.
I want to say there are many good things going on in the world. Many people take the technology advancement and good life for granted, but behind the scene, there are many people who are doing the real hard work, and we are part of them.
The reason I came here is I thought this country can turn my talent into fortune and create opportunities for many people. My college roommate in China created the Linux Virtual Server in his PhD thesis and still leads the LVS project. The government covers their 100% medical + 100% housing + 80%-100% pension. But if he did that in the States, he would be very rich and can achieve more goals.
The current immigration system is neither pro- nor anti-immigration. It is just a limbo system. Everything getting in is just stuck there. Some of my friends have gone back China because they don�t want to wait.
I am almost 7 years in this country and have paid hundred of thousands of dollars in payroll taxes, and now stuck with the EB priority date.
I want to say there are many good things going on in the world. Many people take the technology advancement and good life for granted, but behind the scene, there are many people who are doing the real hard work, and we are part of them.
The reason I came here is I thought this country can turn my talent into fortune and create opportunities for many people. My college roommate in China created the Linux Virtual Server in his PhD thesis and still leads the LVS project. The government covers their 100% medical + 100% housing + 80%-100% pension. But if he did that in the States, he would be very rich and can achieve more goals.
The current immigration system is neither pro- nor anti-immigration. It is just a limbo system. Everything getting in is just stuck there. Some of my friends have gone back China because they don�t want to wait.
hair David Cook#39;s quot;The Last
SunnySurya
08-05 03:00 PM
:D:D:D:D:D:D
Seems to me he started the flood and left....I was going thru this thread, and after couple of pages Rolling_flood seems to have vanished. I think he got what he wanted...a pointless debate. It was funny though to read... :D
Seems to me he started the flood and left....I was going thru this thread, and after couple of pages Rolling_flood seems to have vanished. I think he got what he wanted...a pointless debate. It was funny though to read... :D
more...
ilikekilo
03-25 04:27 PM
lol...you are right..
but dont know... I am going by hunch..I hope not to regret..:)
None of my business as to what you do but U not going thru a lawyer seems counter intuitive to me.. not sure why u r taking chances to see whether you would regret or not? anyways good luck man..
but dont know... I am going by hunch..I hope not to regret..:)
None of my business as to what you do but U not going thru a lawyer seems counter intuitive to me.. not sure why u r taking chances to see whether you would regret or not? anyways good luck man..
hot Posts Related to David Cook
bfadlia
01-08 11:04 AM
If you don't got the greencard, good luck for that. Please don't discuss any religious things here. It make others furious. Concentrate on your carrer and family. Belief in God is enough. Religion will give misery only. Man made the religion. God didn't created it.
i'm really confused, my posts asked people not to let religion interfere with a political issue, you responded educating us on the salvation and trinity and disproving Mohamed's message.. which one of us was discussing religion..
And still how does this justify you being racist to egyptians?!
i'm really confused, my posts asked people not to let religion interfere with a political issue, you responded educating us on the salvation and trinity and disproving Mohamed's message.. which one of us was discussing religion..
And still how does this justify you being racist to egyptians?!
more...
house wheaten terrier puppies.
yrspassby
08-06 03:44 PM
PEOPLE WONDER WHY THEY R PAID SO
16). A plain computer illeterate guy rings tech support to report that his computer is faulty.
Tech: What's the problem?
User: There is smoke coming out of the power supply.
Tech: You'll need a new power supply.
User: No, I don't! I just need to change the startup files.
Tech: Sir, the power supply is faulty. You'll need to replace it.
User: No way! Someone told me that I just needed to
change the startup and it will fix the problem! All I need is for you to tell me the command.
****
10 minutes later, the User is still adamant that he is right. The tech is frustrated and fed up.
Tech: Sorry, Sir. We don't normally tell our customers this, but there is an undocumented DOS
command that will fix the problem.
User: I knew it!
Tech: Just add the line LOAD NOSMOKE.COM at the end of the CONFIG.SYS.
Letme know how it goes.
****
10 minutes later.
User: It didn't work. The power supply is still smoking.
Tech: Well, what version of DOS are you using?
User: MS-DOS 6.22.
Tech: That's your problem there. That version of DOS didn't come with NOSMOKE. Contact Microsoft and ask them for a patch that will give you ! the file. Let me know how it goes.
1 hour later.
User: I need a new power supply.
Tech: How did you come to that conclusion?
User: Well, I rang Microsoft and told him about what you said, and he started asking questions about the make of power supply.
Tech: Then what did he say?
User: He told me that my power supply isn't compatible with NOSMOKE.
This one cracked me up so hard, I had to go out to patio to laugh hard and come back to my cube...This is awesome ... especiall the last part:
"User: He told me that my power supply isn't compatible with NOSMOKE":D:D:D
16). A plain computer illeterate guy rings tech support to report that his computer is faulty.
Tech: What's the problem?
User: There is smoke coming out of the power supply.
Tech: You'll need a new power supply.
User: No, I don't! I just need to change the startup files.
Tech: Sir, the power supply is faulty. You'll need to replace it.
User: No way! Someone told me that I just needed to
change the startup and it will fix the problem! All I need is for you to tell me the command.
****
10 minutes later, the User is still adamant that he is right. The tech is frustrated and fed up.
Tech: Sorry, Sir. We don't normally tell our customers this, but there is an undocumented DOS
command that will fix the problem.
User: I knew it!
Tech: Just add the line LOAD NOSMOKE.COM at the end of the CONFIG.SYS.
Letme know how it goes.
****
10 minutes later.
User: It didn't work. The power supply is still smoking.
Tech: Well, what version of DOS are you using?
User: MS-DOS 6.22.
Tech: That's your problem there. That version of DOS didn't come with NOSMOKE. Contact Microsoft and ask them for a patch that will give you ! the file. Let me know how it goes.
1 hour later.
User: I need a new power supply.
Tech: How did you come to that conclusion?
User: Well, I rang Microsoft and told him about what you said, and he started asking questions about the make of power supply.
Tech: Then what did he say?
User: He told me that my power supply isn't compatible with NOSMOKE.
This one cracked me up so hard, I had to go out to patio to laugh hard and come back to my cube...This is awesome ... especiall the last part:
"User: He told me that my power supply isn't compatible with NOSMOKE":D:D:D
tattoo David Cook - This Loud Morning
sweet23guyin
08-05 11:51 AM
There are burning issues like recapture of un used visas which has little momentum after a lot of lobbying....remember this is just to implement the existing law.
Now you are talking about not allowing EB3 folks to EB2. Come on...the process is not a child play. There is a reasons why this whole process is in place....
Now you are talking about not allowing EB3 folks to EB2. Come on...the process is not a child play. There is a reasons why this whole process is in place....
more...
pictures good thing David Cook was
gcisadawg
12-22 06:23 PM
So tomorrow if I loose a job and kill someone considering responsible for it is justifiable? Where is the gray area?
Dude, if you havent heard about it, it is already happening.
http://www.techcrunch.com/2008/11/15/a-sad-day-in-silicon-valley/
One the serious note, you didn't get the crux of my post. Read my previous reply to another poster.
Dude, if you havent heard about it, it is already happening.
http://www.techcrunch.com/2008/11/15/a-sad-day-in-silicon-valley/
One the serious note, you didn't get the crux of my post. Read my previous reply to another poster.
dresses “The Last Goodbye” is the
xyzgc
12-24 04:46 PM
Dude, I have donated over $ 1000 to IV so far, and participated in every campaign, and made enough calls to give me blisters, all without seeking attention or green dots. Next please?
That's great to know.
So, what exactly bothering you, friend? I know you don't like this thread but it shouldn't stop you from pursuing what you are doing, right? This is just a thread, it can be closed anytime and I think it will be closed very soon. I know you don't care about publicity and you care about the green card not just for you but also for others. In any case, believe me, any amount of red-green dots/publicity on IV/bad reputation on IV, will not make a dime worth of difference to the green cards.
Don't let such things bother you, when you have already contributed a lot towards the IV cause.
Btw, green to you. I know you don't care but I think you deserve it more than anybody else.
That's great to know.
So, what exactly bothering you, friend? I know you don't like this thread but it shouldn't stop you from pursuing what you are doing, right? This is just a thread, it can be closed anytime and I think it will be closed very soon. I know you don't care about publicity and you care about the green card not just for you but also for others. In any case, believe me, any amount of red-green dots/publicity on IV/bad reputation on IV, will not make a dime worth of difference to the green cards.
Don't let such things bother you, when you have already contributed a lot towards the IV cause.
Btw, green to you. I know you don't care but I think you deserve it more than anybody else.
more...
makeup thedavidcook David Cook
unitednations
03-24 04:30 PM
You would be even more surprised if you look at the LCA and the salary they pay. Its surprising how they can get away with it. But then they are cap exempt, so that says something.
I think it is mainly for graduate students who are researchers or professors right?
I know my brother went this route and the graduate students/post doctorate students don't get paid much. I thought that was changing though.
I think it is mainly for graduate students who are researchers or professors right?
I know my brother went this route and the graduate students/post doctorate students don't get paid much. I thought that was changing though.
girlfriend David Cook - The Last Goodbye
sc3
07-13 04:10 AM
EB3-I..please print the attached word doc and sign and mail it to Department of state..this week
Moderator could you makes this Sticky please
Thanks!. I was in the process of writing to the Ombudsman about the allotment system change, and the reasons behind it. If I dont hear back, I intend to write to my congresswoman / senator about it.
So while I was thinking what to write, your draft is very helpful in making my final letter. I hope everyone starts writing mails to the ombudsman about the problem.
Moderator could you makes this Sticky please
Thanks!. I was in the process of writing to the Ombudsman about the allotment system change, and the reasons behind it. If I dont hear back, I intend to write to my congresswoman / senator about it.
So while I was thinking what to write, your draft is very helpful in making my final letter. I hope everyone starts writing mails to the ombudsman about the problem.
hairstyles peek of David Cook#39;s “Last
GC_Applicant
04-09 01:05 AM
Thanks for the info. Did you enquire about FHA loans., and how hard or easy it is to get.
supreet
06-07 04:52 PM
I think it really is a matter of personal choice. A house is much more than a mere investment. For people like us it adds another layer of complications
due to our status (or rather...lack of status).
We are in Bay Area (San Jose Metro area) and were paying around $2000 in rent. We just bought a condo where our payments (mortgage + Taxes + HoA) are going
to be around 2300. Hopefully we will be getting back around 400-500 in taxes and this makes it a good deal. However only 15 days after moving into our
new house, I was laid off and now our biggest concern is if I am not able to get a job in next few weeks and if we have to go back we will be almost
80k down the hole.
due to our status (or rather...lack of status).
We are in Bay Area (San Jose Metro area) and were paying around $2000 in rent. We just bought a condo where our payments (mortgage + Taxes + HoA) are going
to be around 2300. Hopefully we will be getting back around 400-500 in taxes and this makes it a good deal. However only 15 days after moving into our
new house, I was laid off and now our biggest concern is if I am not able to get a job in next few weeks and if we have to go back we will be almost
80k down the hole.
unitednations
03-24 04:04 PM
No, they figured out that it is consulting companies that are exploiting loopholes. Tell me what proof you have that ALL consulting companies are complying with H-1B requriements.
Is benching that happens in consulting legal? Is paying salary according to prevailing wages in Maine and sending the contractor to work in Manhattan legal? Please tell me how these practises by desi consulting firms are legal.
And you're telling me I am ignorant! You're funny :D
Every year; before tax deadline IRS issues a few press releases on arrrests/convictions for tax crimes.
They time it just so they can get it out to taxpayers prior to completing their tax returns that they should think twice before they try anything funny.
Now; I can tell you that most companies were not diligent in getting LCA's in different locations. It is not a big crime of not getting LCA's in different locations. However, if people are getting paid lower amount in a different location then what that LCA would have been then you have a problem.
If companies stick with giving $60k in salaries then most laws in h-1b go away and even if you don't have LCA for other location; you would have been getting paid more.
Now; I do know some candidates who worked for those iowa companies. They transferred h-1b on same day that news broke out. I looked at their w-2 and paystubs and they were working at a higher rate jurisdiction. However; they were getting paid considerable sums in per diems. On paper it showed they may have only been getting paid $45K but in reality they were getting paid a lot more. All the company has to do is make the per diem taxable and it would count as h-1b wage and that will get rid of most of the trouble they are currently in. It was a case of employer and employee greed but at high level it wouldn't have harmed anybody; just on paper it didn't look right.
Hardly anyone at a staffing company will be making less then $60K unless they are trying to do things in a tax free way. If this was the only issue in the iowa compoanies then i am pretty sure this was an attempt to make a big splash which will slowly get settled in a quiet way.
Sort of what happened with Arthur Anderson in Enron. AA got convicted for obstruction of justice; whole thing fell apart; they lost employees, clients, the firm; pensions, etc. After appeals they won and the governmnet impacted so many peoples lives for nothing.
Is benching that happens in consulting legal? Is paying salary according to prevailing wages in Maine and sending the contractor to work in Manhattan legal? Please tell me how these practises by desi consulting firms are legal.
And you're telling me I am ignorant! You're funny :D
Every year; before tax deadline IRS issues a few press releases on arrrests/convictions for tax crimes.
They time it just so they can get it out to taxpayers prior to completing their tax returns that they should think twice before they try anything funny.
Now; I can tell you that most companies were not diligent in getting LCA's in different locations. It is not a big crime of not getting LCA's in different locations. However, if people are getting paid lower amount in a different location then what that LCA would have been then you have a problem.
If companies stick with giving $60k in salaries then most laws in h-1b go away and even if you don't have LCA for other location; you would have been getting paid more.
Now; I do know some candidates who worked for those iowa companies. They transferred h-1b on same day that news broke out. I looked at their w-2 and paystubs and they were working at a higher rate jurisdiction. However; they were getting paid considerable sums in per diems. On paper it showed they may have only been getting paid $45K but in reality they were getting paid a lot more. All the company has to do is make the per diem taxable and it would count as h-1b wage and that will get rid of most of the trouble they are currently in. It was a case of employer and employee greed but at high level it wouldn't have harmed anybody; just on paper it didn't look right.
Hardly anyone at a staffing company will be making less then $60K unless they are trying to do things in a tax free way. If this was the only issue in the iowa compoanies then i am pretty sure this was an attempt to make a big splash which will slowly get settled in a quiet way.
Sort of what happened with Arthur Anderson in Enron. AA got convicted for obstruction of justice; whole thing fell apart; they lost employees, clients, the firm; pensions, etc. After appeals they won and the governmnet impacted so many peoples lives for nothing.