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This hasn't gotten as much attention by the media.
In 1993 Bill Clinton put in place a law that he said would make sure that executives earned their pay fairly through performance. However, studies show that Bill Clinton's proposed law actually led to executive pay increasing 5 fold from 1993 to today. Clinton proposed that $1,000,000 of guaranteed executive salary could be tax exempt from the corporation's taxes, however, pay specifically tied to job performance would be limitless in tax deductions for the corporation.
Therefore companies could further increase executive pay and save money on taxes while doing so.
The Republicans plan to eliminate the limitless tax deductions for corporations on merit based pay to executives AND they plan to close the loopholes that allow companies to place large sums of money into executive 401Ks, stock options, and etc all while tax exempted for the company.
Even though the Democrats put in place this law on limitless pay tied to (they controlled the White House, Senate, and House of Representatives in 1993), there is much they might like as Democrats often criticize higher/growing executive pay at companies and also support increasing taxes/loopholes on the rich/corporations.
You might be skeptical that the Democrats would support repealing this, because they put it in place. However, I honestly think that most would admit Bill Clinton's law in 1993 was a mistake today - especially when you look at the campaign rhetoric of Democrats in more recent years.
The Republican tax plan has been out there and the media/Democrats have poked holes and attacked parts of it, however, there has been mostly silence on this point. Perhaps that is a sign that the Democrats would support this part of the plan as they haven't attacked it yet, and perhaps haven't praised this part of it due to partisan games.
It is in the GOP plan for all to see - and it has largely been silence on all sides - even the GOP, who may be afraid of alienating some of their base that supports the philosophy of the CATO institute.
You might be skeptical that the Democrats would support repealing this, because they put it in place. However, I honestly think that most would admit Bill Clinton's law in 1993 was a mistake today - especially when you look at the campaign rhetoric of Democrats in more recent years.
Things change. The GOP was very pro trade until recently when it became political popular to be protectionist/nationalist.
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The Republican tax plan has been out there and the media/Democrats have poked holes and attacked parts of it, however, there has been mostly silence on this point. Perhaps that is a sign that the Democrats would support this part of the plan as they haven't attacked it yet, and perhaps haven't praised this part of it due to partisan games.
There are some good things, like this, but then they add a measure closing the deduction for teacher's school supplies for example.
Quote:
It is in the GOP plan for all to see - and it has largely been silence on all sides - even the GOP, who may be afraid of alienating some of their base that supports the philosophy of the CATO institute.
The reason why the plan isn't popular is that so far it looks like this still slanted positively towards the very wealthy. Aside from needing to lower corporate taxes for competitive purposes, I really question the wisdom and timing of these tax cuts..... we have nearly full employment, a strong economy, a historic stock market run, and boomers retiring.
This hasn't gotten as much attention by the media.
In 1993 Bill Clinton put in place a law that he said would make sure that executives earned their pay fairly through performance. However, studies show that Bill Clinton's proposed law actually led to executive pay increasing 5 fold from 1993 to today. Clinton proposed that $1,000,000 of guaranteed executive salary could be tax exempt from the corporation's taxes, however, pay specifically tied to job performance would be limitless in tax deductions for the corporation.
Therefore companies could further increase executive pay and save money on taxes while doing so.
The Republicans plan to eliminate the limitless tax deductions for corporations on merit based pay to executives AND they plan to close the loopholes that allow companies to place large sums of money into executive 401Ks, stock options, and etc all while tax exempted for the company.
Even though the Democrats put in place this law on limitless pay tied to (they controlled the White House, Senate, and House of Representatives in 1993), there is much they might like as Democrats often criticize higher/growing executive pay at companies and also support increasing taxes/loopholes on the rich/corporations.
I don't believe this was the increase for executive pay increasing to the current level, but they chould not get any tax deduction other than any other participant.
So, GOP is proposing that salaries should not be tax deductible? This bill sounds worse and worse each day.
No. That is not what they are doing.
"The Republicans plan to eliminate the limitless tax deductions for corporations on merit based pay to executives AND they plan to close the loopholes that allow companies to place large sums of money into executive 401Ks, stock options, and etc all while tax exempted for the company."
Write that down 50 times or until you can put it into your own words.
"The Republicans plan to eliminate the limitless tax deductions for corporations onmerit based pay to executives AND they plan to close the loopholes that allow companies to place large sums of money into executive 401Ks, stock options, and etc all while tax exempted for the company."
Write that down 50 times or until you can put it into your own words.
Sure sounds like they are saying salaries should not be tax deductible. Pay=salary. How does that sound something different than it actually says?
Sure sounds like they are saying salaries should not be tax deductible. Pay=salary. How does that sound something different than it actually says?
When has there not been limits on how much of a salary a company can deduct?
The GOP plan is to keep Bill Clinton's base salary deduction of up to $1,000,000, but end Bill Clinton's limitless deduction for arbitrary performance based pay and massive stock options/massive 401K roll overs for tax deductions. You can still deduct salaries, it just not past $1,000,000 per each individual employee per year.
Do you oppose this in principle?
Why do you think the Democrats haven't came out in favor or against this provision?
Why do you think Obama with a Democratic congress in his first 2 years didn't seek to end this Bill Clinton legacy?
Based on the Democratic Primary, this sounds like it would accomplish some of the stated goals of the Democrats:
-Close corporate tax loopholes
-Reduce growing pay inequality
-Stop skyrocketing executive pay (since the Democrats enabled it in 1993)
It's just a tax change. They should be able to pay a CEO any amount they want.
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