Unintended Consequencessmf1September 25 2008, 15:38:58 UTC
This is the real consequence of the Reagan tax cuts. More than any single other thing, the Reagan tax cuts made this greed possible as prior to them these over-sized salaries would have been taxed down to reasonableness. Henry Paulson, for example, got $163M compensation in 2006 - the tax bill was no more than about around $40M of it and probably less due to various loopholes. Prior to the tax cuts the government would have gotten $148M and he would have been left with about $16M. Most other western nations would have taxed him even more, much more - the Swedes would have left him with about $300k.
Prior to that the only way to get a large amount of money from a corporation was an involved process that required that the company remain in good financial health for many many years. If the corporation went belly up so did the executives money.
I think perhaps we need to go back to an older way of thinking.
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Prior to that the only way to get a large amount of money from a corporation was an involved process that required that the company remain in good financial health for many many years. If the corporation went belly up so did the executives money.
I think perhaps we need to go back to an older way of thinking.
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