Should the federal government use your tax dollars to subsidize million-dollar bonuses for corporate CEOs? This is not a trick question. A 1993 tax law intended to limit corporate tax deductions for executive compensation contains a loophole that might better be termed a loop-crater. The law permits publicly traded corporations to deduct “performance-based” pay lavished on top executives. Taxpayers like you and me are subsidizing multimillion-dollar bonuses and stock options that encourage high-level employees to prioritize short-term profits over the long-term health of their own companies and even our entire economy.
Posted on: Fri, 02 Aug 2013 19:16:19 +0000