Re: The demise of Midrange Computing - Is AS/400 is dead ?

IBM is at the highest tax rate.

Advertising the 400 would increase their profits, and consequently the
amount of tax they had to pay.

Al - going on vacation tomorrow

Al Barsa, Jr.
Barsa Consulting Group, LLC

400>390

914-251-1234
914-251-9406 fax

http://www.barsaconsulting.com
http://www.taatool.com





                                                                                
                                         
                    Don                                                         
                                         
                    <dr2@cssas400.com>         To:     MIDRANGE-L@midrange.com  
                                         
                    Sent by:                   cc:                              
                                         
                    owner-midrange-l@mi        Subject:     Re: The demise of 
Midrange Computing - Is AS/400 is dead ?   
                    drange.com                                                  
                                         
                                                                                
                                         
                                                                                
                                         
                    07/31/01 01:11 PM                                           
                                         
                    Please respond to                                           
                                         
                    MIDRANGE-L                                                  
                                         
                                                                                
                                         
                                                                                
                                         






> they keep paying IBM lot$ of money for the product and support.  IBM
keeps
> it a secret to minimize their tax liability.  IBM refuses to let the


Al,

You've said this numerous times, but I just don't get it...maybe I've been
seeing too many M$ ads lately....

I'm no CPA, but it would seem logical to presume that IBM has reached
their highest marginal tax rate and that incremental sales above $1
Billion would be charges the same marginal tax rate as the next
$Billion...  Actually, the number is much lower than a gigabuck, but I
think you understand the concept.

Given that even without ANY AS/400 (what the heck is a 400?) sales, IBM
would have already achieved it's highest marginal tax rate...  So, in
effect if they sell 1 or 1000 400's (never heard of a 400...at least not
from IBM) they will be charged the SAME tax percentage...before loophole
deductions...:)

I don't get their tax argument...

Don in DC

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