The CEO of NetFlix had an interesting alternative to capping CEO salaries (those of companies that took federal aid). He suggests that we raise the income tax rate from 38% to 50% for any salaries that are over $1 million.
Federal and State Government would get the additional tax revenue.
Government would not get itself in the private sector and dictating salaries or other compensation matters that are maybe best left to shareholders.
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First of all, I strongly believe the Government has no right to cap salaries, and while i'm not the biggest fan of the income tax, I definitely think that the 38 to 50 increase would be slightly better, although it's still quite heavy. Taking half the money someone earns? Taking something from somebody who doesn't "need" it is a ridiculous concept. I suppose I don't actually need my 1st amendment, so I guess that's fair game too.
ReplyDeleteSounds like Communism to me. The Feds taking half of what i make? I agree if it were not for the gov't i would have nothing but being an OIF veteran and having served in the military for six years i have repaid my debt to society, don't tax me into oblivion. Then again I am no millionaire.
ReplyDeleteI have never understood how there was every anyone who could be worth that much money. Are these CEO's really doing something that worth-while to warrant seven, eight, even nine figure salaries a year? Then to throw on the added bonus's they usually get every year? It doesn't make much since to me, especially when there are a decent number of these CEO's that are doing a horrible job of running their companies. It seems like everyday I see another article about some CEO that is stepping down due to poor performance but will be taking a nice seven to eight figure parting gift with him. While I don't feel that the federal government has the right to barge in to private business's and tell them how to run their organizations, I also don't think you should be rewarded for doing a poor job. I think there needs to be some third party oversight on the issue of CEO salaries.
ReplyDeleteI think that if there was such a law people would begin trying to bypass it. Lets say a CEO gets a salary of $1.1 million dollars, well then it would be more profitable for them to lower there salary to $990,000, and basically just bypass the law anyway. I personally don't think it's right to take people's hard earned money anyways just because they make a lot of it. Most of these people have worked really hard all their lives to get where they are today, and it seems really un-American that people want to punish them for it.
ReplyDeleteI think in such times as these...and my option is either a salary cap, or a increase in income tax...I guess I would prefer the income tax increase because if I'm making that much money in the first place, I shouldn't need 10 million, or even 5 million dollars to live. If the income tax is going to benefit the economy in anyway...I would take that over a cap on my salary.
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ReplyDeleteIf some one is making a million dollars or more as a salary why not raise it? maybe not to 50% but the rich should be taxed more seeing as how they can afford much more than the average worker.I believe even if i were rich i would agree to give more to the gov. why tax the lower classes just as much when they are most likely working the harder jobs.
ReplyDeleteI am all for raising the income taxes of peoples who make 1 million dollars a year. Progressive taxing makes sense, the rich pay more as a percentage and the poor pay less. I do not believe that the government has any right to put its hand in the private sector, and cap salaries. A company is run like a government, with a ranking system and specific duties. A private company should be able to choose its employees salaries, not have the government give them limits on to how much one can earn.
ReplyDeleteThe government needs money to run. Who can afford to but up the most money? The rich. It makes sense, granted it sucks for the rich. I government has the right to tax but when they are interfering with capping people's salaries, thats crossing over the line. The government would make more money if they let the salaries go up and up. So tax the rich but don't let start setting the limit on what people make. If government taxed the rich the government would control their wealth and make more money for the country. Two birds with one stone.
ReplyDeleteCap it or Tax it; Either way works. Nobody deserves the luxuries that such rediculous incomes provide; not while there are still people who can't even afford a home
ReplyDeleteIt’s an interesting idea to come up with some revenue, but I don’t think the government has the right to cap salaries. I also don’t think the government should be bailing out select private companies. Maybe that’s the price CEO’s pay. They take an income tax raise and if there company is in trouble the government will bail them out. It’s kind of like insurance. Keep paying and maybe one day we’ll need the money we’ve put in.
ReplyDeleteCEO salaries are out of control, theres no doubt about that. The idea to raise the taxes on the salaries is a very good option (that could bring money to the government), but people can always find a way around that. While I don't want to see too much government interference in the private sector, something needs to be done. If they don't cap the salaries, they should at least adopt a cap on the bonuses that CEO's receive. I just saw that some CEO's got like $80 million in bonuses for last year. This is one case where the government and businesses should follow the professional sports leagues who have instituted salary caps and are now putting the limit on bonuses and guaranteed money.
ReplyDeleteI think there should be a salary scale for corporations. anyone directly below the CEO makes 80% of CEO's salary, underneath them, 65% of CEO's salary...etc. This scale would also help to close the gap between the workers and the managers.
ReplyDeleteI think it is a great idea. What I like most about it is that it came from a CEO. There is an wide gap between the rich and the poor in the U.S. A higher income tax for the rich might change that. Also, who really needs to have a salary of $1,000,000+ a year. I don't think that they actually need all that money. Lastly, I cannot agree that their salary is "hard earned." If that were true, then factory workers, farmers, and many other low paying jobs that require hard work should be paid the same. Our pay scale is not based off who does the most work.
ReplyDeleteI think we should quit worrying about the salaries of CEO’S in corporate America, Yes they make a lot and yes they pay lots of taxes. Lots of these huge Companies are going out of business, but I don’t think it’s fair to blame them for all of the faults on company either. One the other hand, when I get a job I don’t want someone else outside of the company deciding how much money I make in a year. If the Government takes that much money from the paycheck s of these CEO’S, I can’t see many of them sticking around too long in this country; I would pack up and go someplace else.
ReplyDeleteThe tax cuts are self contradicting to receiving federal aid. These CEOs need to make more personal sacrifices so the government doesn't need to interfere. Then perhaps the government wouldn't need to make drastic tax cuts to anyone.
ReplyDeleteI the principle behind these ideas are good but i do not think the government should interfere. I know these people are making lots of money and possible hurting the company, but its the companies job to confront this. If a CEO of the company is riding into the ground they need to consider other solutions.
ReplyDeleteAs far as capping salaries is concerned, it's a bad idea. People will get all up in arms about the country being socialist, and something like the "red-scare" will probably disrupt the country again. Ha. Ta
ReplyDeleteTaxing the wealthy on the otherhand is something that is right. We should know by now that "Reaganomics" is a terrible idea. Unless you're wealthy of course. Rich people aren't going to revitalize the economy by keeping more money. Tax the rich, give it to the poor. When you want a plant to grow you water the roots, not the leaves...