More pointless chatter from politicians.
http://thehill.com/blogs/blog-briefing-room/news/75459-dem-congressman-introduced-50-tax-on-bonuses
I don't know if politicians really think this could accomplish something, or they are just doing this so they can say it to the american people later on. If you start putting some sort of super taxes on bonuses, than companies will just start rewriting contracts to have much bigger base salaries and much smaller bonuses. They will have more stock options, or some other way to pay these people without having to pay extra taxes. You should be happy that they receive such large amounts of their pay through bonuses which they receive if they perform well. I'm not saying that the system is flawless, obviosuly the question of how good a performance was in impossible to calculate in the short term of a year. But the system is what it is, and these guys are going to get paid. You don't get into investment banking because your dumb, these guys are all incredibly smart. That doesn't mean everything they've done has always been smart, but they will figure out a way to get paid, and if they don't they will move to another industry, leaving stupider people in charge of the financial sector (you also don't go into investment banking if you don't care about money.)
I don't know if politicians really think this could accomplish something, or they are just doing this so they can say it to the american people later on. If you start putting some sort of super taxes on bonuses, than companies will just start rewriting contracts to have much bigger base salaries and much smaller bonuses. They will have more stock options, or some other way to pay these people without having to pay extra taxes. You should be happy that they receive such large amounts of their pay through bonuses which they receive if they perform well. I'm not saying that the system is flawless, obviosuly the question of how good a performance was in impossible to calculate in the short term of a year. But the system is what it is, and these guys are going to get paid. You don't get into investment banking because your dumb, these guys are all incredibly smart. That doesn't mean everything they've done has always been smart, but they will figure out a way to get paid, and if they don't they will move to another industry, leaving stupider people in charge of the financial sector (you also don't go into investment banking if you don't care about money.)
posted by Trashcan at 1/14/2010 12:04:00 AM
3 Comments:
if my kid spends too much of her allowance on candy, i'm gonna take 50% of the candy and eat it myself. that's the principle here, right?
I understand the theoretical idea of being upset about a CEO making 20 million dollars for a year in which his company is having an awful year, or getting a huge compensation package for being fired, but it's no different than any other industry. In sports players are often given huge contracts worth 20 million plus a year, and then they crap out and don't live up to it, and or are bought out for huge money. Same with coaches. Actors can easily get paid 20 plus million to make a movie that turns out to be crummy, etc. Why don't you start putting super taxes on athletes/movie stars/ singers if you want to take money away from people who get paid way more than they are worth.
I think actors pay over fifty percent. I don't know about singers in the States, but here they're paying 80% this year: the taxes were made that way accidentally; Parliament it completely unaware of the laws on the books, it seems, so sometimes they double tax certain professions.
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