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View Diary: Why Romney's Plan would HURT Small Business. (7 comments)

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  •  Absolutely. We didn't see these huge CEO (1+ / 0-)
    Recommended by:
    a2nite

    salaries and bonuses until the top marginal rate fell significantly from the 90% or so it was under Eisenhower.  Back then the money was reinvested in the company where it was used to buy equipment and pay employees.  With the lower rates, it became a free-for-all (all executives, that is) to see how much they could transfer from the company into their own pockets.

    •  There's no direct connection between those two (1+ / 0-)
      Recommended by:
      puzzled

      High CEO salaries are deductible the same way other business expansion is deductible. Tax ramifications are the same. Additionally, those high salaries are paid most often by publicly owned corporations subject to a top corporate tax rate of 35% which hasn't changed much in 25 years. Before that it was around 45%. The corporate CEO salaries started to increase substantially faster than other corporate wages during the mid 80's. The drop in the top corporate rate did occur at roughly the same time.

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