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View Diary: Rep. Paul Broun: "Corporate tax rates should be zero" (42 comments)

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  •  competitive pressure (1+ / 0-)
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    That argument is somewhat simplistic,
    If corporations simply raise their prices to cover taxes, then another corporation will lower their prices and make up for it in the increased volume they sell. Some items are very price sensitive. It's the same with employees salaries. In some cases, union contracts dictate a certain wage, so it can't simply be changed on a whim.

    Executive salaries are quite easily manipulated. The exiting CEO of Google earned a $1 salary, but received several million dollars worth of stock that is not taxed until he actually sells it.

    •  Schmidt got $100 mil in stock and stock options. (0+ / 0-)

      Stock is treated as taxable compensation to the extent the FMV exceeds the employee's cost.  Timing of that recognition depends on whether the employee made a Sec. 83(b) election.  
      And there's potential AMT with stock options.

      My Karma just ran over your Dogma

      by FoundingFatherDAR on Wed Jan 26, 2011 at 03:01:53 PM PST

      [ Parent ]

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