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View Diary: It's Not Wage Stagnation, It's Wage Robbery (151 comments)

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  •  RMF - I didn't write about the taxation (0+ / 0-)

    of corporations at all. I was only discussing the taxation of the incentive compensation of executives and the differences between corporate executives and investment managers.

    I made no mention of corporate taxes. This was all about the taxation of individuals.

    I would appreciate your feedback because I obviously wasn't clear and I am thinking of making this comment into a diary.

    "let's talk about that"

    by VClib on Tue Mar 04, 2014 at 07:48:31 PM PST

    [ Parent ]

    •  You're right, I wasn't clear (0+ / 0-)

      Corporate executives at a fortune 500 transnational corporations don't have their compensation taxed in the same way as the rest of us small business owners at all. The current tax code favors these already very wealthy individuals which I believe is incredibly wrong in my point of view. I believe all income from any source should be taxed at least 50% on income over $3 million a year like it was between 1935 and 1986 when Reagan deregulated corporate compensation regulations. We need to close these loopholes that allow corporate CEO's to pay little or now income taxes on their compensation.

      Really don't mind if you sit this one out. My words but a whisper -- your deafness a SHOUT. I may make you feel but I can't make you think..Jethro Tull

      by RMForbes on Tue Mar 04, 2014 at 08:12:13 PM PST

      [ Parent ]

      •  RMF - Senior Fortune 500 execs (2+ / 0-)
        Recommended by:
        nextstep, Balto

        pay the top marginal rate of nearly 40%. You can argue that is too low and should be higher. But because all of their corporate compensation is W2 earned income, they are paying the top rate. They would have to have a huge investment portfolio and generate a lot of capital gains from selling appreciated capital assets, or making very big charitable gifts, to drive down their effective rate. So these executives do in fact pay taxes on the same basis as successful small business owners. In fact, small business owners have more options (but less income) to legally shelter income than Fortune 500 execs.

        When the Tax Reform Act of 1986 passed it closed nearly all the loopholes, that was the rationale of dropping the top marginal rate from 50% to 28%. Rates before 1986 and after really can't be compared, because they apply to a completely different IRS code for individuals. Not many loopholes remain for corporate executives. All their perks are now taxable income. I remember when car allowances, and other similar executive benefits weren't taxable income. That's long gone.

        "let's talk about that"

        by VClib on Tue Mar 04, 2014 at 08:53:00 PM PST

        [ Parent ]

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