A commentator on Marketplace last night had an interesting observation about the new US tax bill.
It cuts the maximum rate on earnings from stock dividends to 15%.
What does this mean for a corporate CEO? A marvelous tax shelter, that's what.
As a CEO, you arrange to get paid in preferred stock from the company -- corporate stock that pays good dividends, that is. Your income is the dividends on your stock, and the cap on your income tax is 15%. Seeing as how the tax rate on straight pay for corporate CEO's can easily be twice that, a well-paid CEO should love this new tax bill.
New Tax Bill Great for Corporate CEO's
Moderators: Alyrium Denryle, Edi, K. A. Pital
New Tax Bill Great for Corporate CEO's
"This is supposed to be a happy occasion... Let's not bicker and argue about who killed who."
-- The King of Swamp Castle, Monty Python and the Holy Grail
"Nothing of consequence happened today. " -- Diary of King George III, July 4, 1776
"This is not bad; this is a conspiracy to remove happiness from existence. It seeks to wrap its hedgehog hand around the still beating heart of the personification of good and squeeze until it is stilled."
-- Chuck Sonnenburg on Voyager's "Elogium"
-- The King of Swamp Castle, Monty Python and the Holy Grail
"Nothing of consequence happened today. " -- Diary of King George III, July 4, 1776
"This is not bad; this is a conspiracy to remove happiness from existence. It seeks to wrap its hedgehog hand around the still beating heart of the personification of good and squeeze until it is stilled."
-- Chuck Sonnenburg on Voyager's "Elogium"
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TrailerParkJawa
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Yeah, but now they can get overpaid and only owe half the taxes.TrailerParkJawa wrote:CEO's at many companies are going to get overpaid no matter what tax law is passed, wether its options, dividends, or straigh cash bonus'.
"This is supposed to be a happy occasion... Let's not bicker and argue about who killed who."
-- The King of Swamp Castle, Monty Python and the Holy Grail
"Nothing of consequence happened today. " -- Diary of King George III, July 4, 1776
"This is not bad; this is a conspiracy to remove happiness from existence. It seeks to wrap its hedgehog hand around the still beating heart of the personification of good and squeeze until it is stilled."
-- Chuck Sonnenburg on Voyager's "Elogium"
-- The King of Swamp Castle, Monty Python and the Holy Grail
"Nothing of consequence happened today. " -- Diary of King George III, July 4, 1776
"This is not bad; this is a conspiracy to remove happiness from existence. It seeks to wrap its hedgehog hand around the still beating heart of the personification of good and squeeze until it is stilled."
-- Chuck Sonnenburg on Voyager's "Elogium"