New Report Sheds Light On Taxpayer CEO Pay Subsidy Loophole


tay
#1
It always pays to have friends in Washington...........








Taxpayers have been subsidizing CEO pay for fast food companies and other firms due to a loophole that allows unlimited corporate tax write-offs on performance-based compensation for top executives.


From 2011 through 2012, CEOs of the top six publicly held fast food companies, including McDonald's, Yum! Brands, Wendy's, Burger King, Domino's and Dunkin' Brands, hauled in a collective $183 million in fully deductible performance pay, which comes out to be a total tax break valued at $64 million, according to the report.




The so-called "performance pay" loophole in the current corporate tax law first started in 1993 when Congress limited the deductibility of certain executive pay to $1 million. But the law provided an exception for performance-based pay, such as stock options, non-equity incentive plans and stock appreciation rights, as part of Section 162(m) of the Internal Revenue Code. Currently, unlimited amounts can be deducted from corporations’ federal income taxes for costs associated with performance-based executive pay.


Due to the law, companies have shifted more executive compensation packages to meet the performance-based exception as a way to pay less federal taxes. This practice essentially leaves ordinary taxpayers on the hook for the lost tax revenue.


more




New Report Sheds Light On Taxpayer Subsidies For Fast Food CEO Pay | Progress Illinois
 
Walter
#2
Communist website.
 
tay
#3
Quote: Originally Posted by WalterView Post

Communist website.







Yes I'm sure if we went to a Corporate website they would think that taxpayers subsidizing CEO pay is not socialism, or as your intellectual addition to the articles features indicate, Communist..............
 
BornRuff
+2
#4  Top Rated Post
Compensation for all other employees is a tax writeoff, so why would it be any different for CEOs?
 
captain morgan
Bloc Québécois
+2
#5
Quote: Originally Posted by tayView Post


Taxpayers have been subsidizing CEO pay for fast food companies and other firms due to a loophole that allows unlimited corporate tax write-offs on performance-based compensation for top executives.

That performance compensation is taxable to the CEO as 'income' which is the highest rate.

There is no 'subsidy ' coming out of the public purse.

... This is exactly what happens when people that have no understanding of the tax system swallow the pap that is handed out to them
 
taxslave
No Party Affiliation
+2
#6
Quote: Originally Posted by captain morganView Post

That performance compensation is taxable to the CEO as 'income' which is the highest rate.

There is no 'subsidy ' coming out of the public purse.

... This is exactly what happens when people that have no understanding of the tax system swallow the pap that is handed out to them

Way to ruin a leftard's year. Facts and figures always confuse them.

Quote: Originally Posted by tayView Post

It always pays to have friends in Washington...........








Taxpayers have been subsidizing CEO pay for fast food companies and other firms due to a loophole that allows unlimited corporate tax write-offs on performance-based compensation for top executives.


From 2011 through 2012, CEOs of the top six publicly held fast food companies, including McDonald's, Yum! Brands, Wendy's, Burger King, Domino's and Dunkin' Brands, hauled in a collective $183 million in fully deductible performance pay, which comes out to be a total tax break valued at $64 million, according to the report.




The so-called "performance pay" loophole in the current corporate tax law first started in 1993 when Congress limited the deductibility of certain executive pay to $1 million. But the law provided an exception for performance-based pay, such as stock options, non-equity incentive plans and stock appreciation rights, as part of Section 162(m) of the Internal Revenue Code. Currently, unlimited amounts can be deducted from corporations’ federal income taxes for costs associated with performance-based executive pay.


Due to the law, companies have shifted more executive compensation packages to meet the performance-based exception as a way to pay less federal taxes. This practice essentially leaves ordinary taxpayers on the hook for the lost tax revenue.


more




New Report Sheds Light On Taxpayer Subsidies For Fast Food CEO Pay | Progress Illinois

Just in case you were not aware all pay to every employee is tax deductable to the company. Now if you had a job the taxpayers(us) would be subsidizing your pay as well.
 
The Old Medic
Conservative
+1
#7
You don't like this, then try to get YOUR Congressman/Senator to introduce a bill to abolish this.

And what the heck does this, and a lot of other topics about the USA, Europe, etc. have to do with Canada? There are SUPPOSED

This is SUPPOSED to be a Canadian forum.
 
EagleSmack
+1
#8
Quote: Originally Posted by tayView Post



Due to the law, companies have shifted more executive compensation packages to meet the performance-based exception as a way to pay less federal taxes. This practice essentially leaves ordinary taxpayers on the hook for the lost tax revenue.





Are taxpayers on the hook... or are people just mad they aren't rich like these CEOs and are mad the CEOs get to keep the money they've earned?

Quote: Originally Posted by tayView Post

Yes I'm sure if we went to a Corporate website they would think that taxpayers subsidizing CEO pay is not socialism, or as your intellectual addition to the articles features indicate, Communist..............


In this case... is it just the CEOs not having to pay more taxes?


YES

Quote: Originally Posted by captain morganView Post

That performance compensation is taxable to the CEO as 'income' which is the highest rate.

There is no 'subsidy ' coming out of the public purse.

... This is exactly what happens when people that have no understanding of the tax system swallow the pap that is handed out to them


Sorry Capt... it seems like you explained this to her already.
 
damngrumpy
No Party Affiliation
#9
First of all Walter always has an answer correct or not doesn't matter.
As for the CEO collecting their pay packages and bonuses etc I don't
think they should have a loophole for acquisition competition its time
they paid. I agree its tax deductible for employee salaries that is fine.
Most of these people never earned it though the company gets a
benefit cause they have to compete and the company shouldn't be able
to deduct that. Maybe the silly raise the bar CEO salary game would end
if companies were not allowed to play for free.
 
captain morgan
Bloc Québécois
#10
Quote: Originally Posted by damngrumpyView Post

First of all Walter always has an answer correct or not doesn't matter.
As for the CEO collecting their pay packages and bonuses etc I don't
think they should have a loophole for acquisition competition its time
they paid. I agree its tax deductible for employee salaries that is fine.
Most of these people never earned it though the company gets a
benefit cause they have to compete and the company shouldn't be able
to deduct that. Maybe the silly raise the bar CEO salary game would end
if companies were not allowed to play for free.

CEOs are employees... Wanna exempt their bonuses, that's fine, the exact same happens for any bonus or profit sharing program for everyone else.

.. So, all you've accomplished is that no one can receive any bonus-style payment.

Happy now?
 
taxslave
No Party Affiliation
#11
Quote: Originally Posted by captain morganView Post

CEOs are employees... Wanna exempt their bonuses, that's fine, the exact same happens for any bonus or profit sharing program for everyone else.

.. So, all you've accomplished is that no one can receive any bonus-style payment.

Happy now?

So where is the incentive to work harder if there is no bonus?
 
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