Wednesday, June 10, 2009

Any Compensation In Excess of $250,000 Should Not Be Deductible, And Should Be Taxed At 90%.

President Obama and Wall Street's biggest friend, Tim Geithner, just announced that they will not do anything to try to cap the salaries of the Wall Street Criminals. No surprise there. They just gave Wall Street Hundreds of Billions of Dollars which has been paid out to the insiders, all with the permission of the politicians in D.C. Why would the politicians suddenly "get tough?" It makes no sense. It's all just a show for the public.

The I.R.S. has general rules restricting business deductions to items which are not lavish or extravagant. In addition, salaries must be reasonable under the circumstances of what the person does.

All Congress needs to do to stop the looting of our country by the CEOs and insiders is to say that the maximum compensation or consideration of any type (include the value of the whole package, including stock options, retirement, medical and other benefits) that can be deducted by a business is $250,000.

There is general law that prohibits the Board of Directors and corporate insiders from doing anything that is not in the best interest of the corporation. Incurring an expense which cannot be deducted would be the definition of waste, and would get get them all sued by the shareholders.

So let's just change the tax law. Let's get real. Cap deductions of compensation at $250,000.

And, to reinforce that, provide that any compensation of any type in excess of $250,000 will be taxed at 90%, not subject to any other deductions or offsets.

End of problem.

If the Democrats or Obama or Geithner wanted to stop the looting and plundering of our country, they could do so easily. The fact that they don't do so just shows that they don't want to. It's very lucrative for them. The CEOs, Wall Street, the insiders, the Corporate Dictatorship owns all the politicians in Congress, and pays them kick-backs for all the money they plunder from our country. And all the press releases and floor fights are just a circus put out to keep the public ignorant. And poor.

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