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View Diary: URGENT: Last chance to get a better tax cut deal (163 comments)

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  •  No it wouldn't (0+ / 0-)

    Executives have more flexibility in setting their own salaries in the face of shareholder objections than employees have in setting theirs.  It makes the compensation committees rethink executive salary requests.

    It makes perfect sense, unless you have bought into the executive shell game.

    If you are a sole proprietor, you take out money as cashed-out equity and can't deduct it.  Same principle.

    50 states, 210 media market, 435 Congressional Districts, 3080 counties, 192,480 precincts

    by TarheelDem on Thu Dec 09, 2010 at 07:00:19 PM PST

    [ Parent ]

    •  You can also take it out as dividends and then (0+ / 0-)

      you can deduct them. Also, when you take money out as equity it's capital gains, not regular income. And when an owner of the company pays himself a salary, it's deductible from business taxes as well.
      I understand your principle and it makes some sense but you assume that executive is essentially an owner and it's simply not true. I think my suggestion about capping the deductible total compensation to any employee at smth reasonable (e.g. 500k or a certain percent of company income) makes more sense.

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