Tuesday, August 20, 2013

Populist and Refreshing

It is nice to see Democrats taking the lead for a change. Barbara Lee has introduced HR199 to address the "backward incentives" corporations have that allow them to deduct the costs of executive compensation. You can read the details at the Orange Satan.

Under the current rules, the more a firm pays its CEO, the more the firm can deduct from its taxes.
To be clear, corporations can compensate their executives as much as they’d like. The idea is to prevent corporations from passing the buck to the American taxpayers.
My bill would eliminate a “backward” incentive for excessive compensation, which the bill defines as more than 25 times that of the lowest paid workers at the company.

This is a good thing and there is a petition at the above link if you think so too.

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