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Any compensation to a corporate officer greater than 50x the LOWEST paid employee at that company is NOT tax deductible by the company.

So, if a company pays minimum wage, any compensation in excess of $754,000 may not be deducted from the company's taxes as a business expenses. It is considered a gift for tax purposes.

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Comment Preferences

  •  Companies have a long history (1+ / 0-)
    Recommended by:

    of finding ways around simple, common sense reforms such as this. We had a solution that worked pretty well for several decades last century, we should just resurrect it's elements and put them back in place.

    First, progressive income taxation. When an company had to put $910,000 into government coffers in order to give it's chief executive an extra $90,000 in take home pay, many decided to spend that $910,000 expanding their business or on research and development.

    Second, unions. Since no one gives up something without a fight, strong unions fighting for workers will do a lot to even out labor's take and capital's take of a company's productivity.  

    "The problems of incompetent, corrupt, corporatist government are incompetence, corruption and corporatism, not government." Jerome a Paris

    by Orinoco on Tue Apr 09, 2013 at 12:34:55 PM PDT

  •  tax rate (0+ / 0-)

    We should raise the marginal tax rate on incomes over $1,000,000 to 70%. This would reduce the incentive to have overpaid executives.

    There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy.

    by cigale on Tue Apr 09, 2013 at 02:06:39 PM PDT

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