The President-elect campaigned against the excesses of the CEO paycheck throughout 2016. Sadly, his cabinet appointments suggest a complete turnaround from what he said at that time. But according to Sarah Anderson, director of the Global Economic Project at the Institute for Policy Studies, there are a number of things our new policymakers could do to tackle the ongoing problem of CEO excesses.
Firstly, the tax loophole that encourages corporations to pay their CEO’s more money needs to go. The loophole currently allows corporations to deduct unlimited sums of money from their taxes for executive stock options and other “performance pay”. The more corporations pay their CEO’s the less taxes they have to pay.
Two Democratic Party Senators introduced a bill this week to get rid of the loophole. There is also an accompanying House bill. But to date, there has been no indication of support from any on the Republican team.
Secondly, the tax-sheltered retirement accounts that allow large corporations to provide for unlimited tax-deferred accounts also need to go. These accounts are in sharp contrast to the reality of the average person’s 401(k) account which is capped on how much money can be set aside.
Sarah Anderson reports other steps could also be taken to deal with the unfairness of the CEO paycheck. Check out the link: http://www.usnews.com/opinion/economic-intelligence/articles/2017-01-11/what-donald-trump-should-do-if-he-really-thinks-ceo-pay-is-a-joke