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View Diary: Software-bots will take your job (10 comments)

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  •  Raise taxes heavily on corporations and the rich (3+ / 0-)
    Recommended by:
    kharma, MKinTN, tarkangi

    , tax all incentives to executives as ordinary income, and increase the minimum wage.  
    Low taxes makes taking profit cheap.  Make it expensive and companies and investors will go for growth and investment.
    Without the perverted short term profit model, companies will go back to striving for long term viability and steady growth.  

    "Searches with nonspecific warrants were ‘the single immediate cause of the American Revolution.’” Justice Wm. Brennan, referring to the 4th Amendment

    by Nailbanger on Tue Mar 18, 2014 at 10:49:15 AM PDT

    •  Nailbanger - all incentive income (2+ / 0-)
      Recommended by:
      Aramis Wyler, nextstep

      for the Fortune 1,000 is already taxed at the top earned income rate. There is no way to structure any of the incentive compensation, including stock options and restricted stock grants, to qualify it for long term capital gains treatment.

      I have to do a diary on this soon. This is such a widely held view and I have no idea where it came from. My guess from Warren Buffet, but he isn't paying any significant taxes on his income from Berkshire Hathaway because he only takes $100,000 a year. Founders of companies such as Microsoft, Google, Facebook own actual shares they were granted when the companies were founded. Those founders shares are not compensation. When they sell their founders shares they are eligible for long term capital gains, just like anyone else who is a long term shareholder. However, any stock options or restricted stock can't be structured to qualify for long term capital gains. I am an expert in executive compensation and there is absolutely no way to make incentive compensation that isn't taxed at the top marginal unearned income rate. It has always been the case.

      Mitt Romney, was part of a small group of investment managers who can structure their incentive compensation to qualify for long term capital gains, but none of that applies to corporations like the Fortune 1,000.

      "let's talk about that"

      by VClib on Tue Mar 18, 2014 at 11:36:09 AM PDT

      [ Parent ]

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