There's A Loophole That Forces Taxpayers To Fund CEO Bonuses

Submitted by: lalapancakes 5 months ago News & Politics
Lloyd-Blankfein-Net-Worth-660x330

The world watched the U.S. essentially award all the asshole bankers who tanked the economy with continued and profitable job stability. And over the years many of those bankers went on to take gratuitous raises. Those raises went on to somehow, not only be comically massive, but also tax free. So basically, not even a decade after crumbling everyone’s saving accounts and housing investments, these same asshole bankers screwed the American tax payer over, again! Thankfully, the American voter is informed as fuck and voted for the right “anti-establishment” team to handle anymore of this kind of corrupt monied bullshit going forward, should it arise. /sarcasm

An excerpt from US Uncut:

Between 2012 and 2015, the top five executives at the top 20 banks were paid a total of $2 billion in performance-based bonuses. Had these bonuses been subject to taxation at the standard 35 percent rate, the U.S. Treasury would have collected $725 million in tax revenue during those years. This amounts to roughly $1.7 million per executive, per year, in lost tax revenue. That $725 million makes up roughly 41 percent of the U.S. Securities and Exchange Commission’s requested budget of $1.781 billion. IPS also calculated that the $725 million in tax dollars lost to performance-based bonus write-offs could have hired 9,000 elementary school teachers.

There are 10 comments:
Male 1,209
Once again if you don't like the tax system elect people that will change it. Was what they did illegal? If yes take them to task (oh right it probably does not reach the level of prosecution no real prosecutor would prosecute) The U.S. tax system is a mess it needs to be cleaned up and made less flexible for those that have the means to manipulate it. This kind of results are one of the kinds of things that help drive the present President elect, people that manipulate the system to there advantage and screw all the working class and get away with it not, just CEOs but politicians too we have to give equal justice.
0
Reply
Male 642
<>> And how exactly does a company deducting expenses from income and paying taxes on the difference relate to a "deeply rooted love for money in high office?" You did read the article right? You do understand that what the article is talking about is the SAME tax treatment your pay gets right? There is nothing shady or sneaky or sinister about how CEO pay is treated by the corporate tax code And no, despite what the article says, companies are not paying there CEOs more so that they can avoid taxes. Whether or not those in high office suffer from a "deeply rooted love for money" and how that affects the country is a reasonable argument to have but to conflagrate that idea and the concept of deducting expenses from income is just silly.
0
Reply
Male 1,255
No, of course I just looked at the pretty pictures. I don't "do reading." /sarc | Regardless of how the tax break operates, by normal means or by actual loophole, the idea they're giving themselves bonus yachts after paying the country back with more TARP programs like Community Development Capital Initiative gives me a nose bleed.
0
Reply
Male 642
Of course you read the article. I have followed/read to many of your post to think otherwise. I was being a bit sarcastic myself, but my guess is you knew that... However, you use terms like "loophole" to suggest some evil purpose or tricky maneuver not available to all, similar to what the article tries to indicate. While such things do exist the tax treatment reported in the article above is not an example. There is no special double secret loophole that allows companies special treatment of some employees pay vs other employees pay. Even your pay has the same treatment it is considered a operation cost and deducted from the companies bottom line before taxes are calculated. If you are mad that a company deducts employee compensation from income then fine. But to suggest that somehow the tax code has been written to allow a company to pay an executive extra to avoid tax is illogical and just plain false. Yet this is exactly what the article tries to indicate. Your argument that the bailouts and TARP programs are what have allowed the companies to profit is more reasonable. However, what exactly would you expect them to do? Turn it down and go under?
0
Reply
Male 1,255
Er shh yea. I actually didn't use the term, "loophole." Often times what happens is Fancy edits my words. I can see where that got confusing. What I would expect them to do... would be a whole other article. ;)
0
Reply
Male 1,255
0
Reply
Male 642
In that case let me offer an apology for perhaps misconstruing what you actually meant.
0
Reply
Male 1,906
Been telling you for a long time there's a major problem in the nation, a deeply rooted love for money in high office. Time to be brave and free yourselves from the tyranny before someone else has to. At this juncture it's looking like the later will have to happen.
0
Reply
Male 1,332
Thanks @dang007, you beat me to it.
0
Reply
Male 642
The same loophole that lets companies deduct the pay they give you from their taxes. Making your pay exactly as "tax free" as the CEO pay described above. Since it is a deduction not a tax credit, the statement that companies are incentivized to give large pay to avoid taxes is idiotic. What company or person would pay $100 to get out of $35 in tax? The entire article is cr@p written by someone who obviously does not understand the US tax system, the concept of supply and demand, or capitalism at all.
0
Reply