Tuesday, August 21, 2012

... and if you REALLY want your blood to boil...

... here's something guaranteed to raise your blood-pressure:
CEOs Tax the People
AL'S EMPORIUM August 18, 2012
The more a company pays its chief executive officer, the bigger the tax break it gets.

This is how the game is rigged, according to the Institute for Policy Studies, a progressive Washington think tank, which released a report last week titled, "The CEO Hands in Uncle Sam's Pockets."

"The tax code has become a prime enabler of bloated CEO pay," says one of the study's co-authors, Scott Klinger, a chartered financial analyst and former investment manager.

The study counts the many ways our tax code encourages companies to overpay their top executives. One of them is an unlimited deduction companies may claim for the "performance pay" they give their CEOs. The bigger the CEO's performance pay, the bigger the company's tax deduction.

The tax code simply begs companies to lavish CEOs with stock options, the study says. This, in turn, encourages the bosses to take more risks with other people's money, and gets us all into the economic trouble we face today.
The full study upon which this article is based can be found at Executive Excess 2012: The CEO Hands in Uncle Sam's Pocket [click the "Read the full report" link at the bottom of the page].

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