In light of the budget debate, here is an interesting article about a study on corporate CEO pay and how they actually get tax money back from the government. Yes, that’s right, while giving themselves huge corporate paychecks, the CEOs enjoyed huge tax benefits from the federal government for their companies.
So, the government is actually encouraging companies to behave this way by giving them tax credits, while, at the same time, those same corporations are laying off workers or cutting their pay and benefits to increase profits.
As middle America struggles with paying ever increasing prices, mortgages, health care premiums, as they are worried about job loss, house foreclosures and paying bills, the CEOs are living the good life, writing their own paychecks and supported by the government for doing it.
“Twenty-five of the best-paid chief executive officers in the U.S.earned more in salary and other compensation in 2010 than their companies’ federal income tax expenses as disclosed in public filings, according to a report by the Institute for Policy Studies.
The Washington-based nonprofit group’s report, released today, examined 100 publicly tradedU.S.corporations with the highest-paid CEOs. It found that companies whose CEOs’ compensation exceeded reported tax expense in 2010 had average global profits of $1.9 billion.”
It’s a sad commentary on deregulation inAmerica. This reminds me of the turn of the last century where big business and Wall Street were in control of the government. There was very little regulation of the economy and working conditions were deplorable.
It took the regulations of the Roosevelt Administration (Franklin) to put some balance into the economy and put banks and corporations in check. The incredible thing is that America as a nation prospered. It was a win-win. The corporations made money, the working class got a dignified living standard and the government got tax revenue from it all.
But, starting with the deregulation of the late 70s and early 80s, continuing up to the Gramm Rudman Bliley Act, which was the final nail in the coffin of the Glass Steagall Act, or regulation, America is back in the same situation where corporations and banks control the government instead of the other way around.
Isn’t the government supposed to represent the people? Isn’t the government elected by the people, not the corporations? This article shows a part of the society that needs to get reigned in by a government that works for the average American.
It’s time to get back to a Glass Steagall policy and regulation in the economy so we don’t have to live in a very rich, very poor society.
Read the original article here.