Political Quotes

“today I am introducing, along with Senator Blumenthal, the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act. This bill closes a loophole that allows publicly traded corporations to deduct an executive's pay over $1 million from their tax bill. Under current tax law, when a public corporation calculates its taxable income, generally it is permitted to deduct the cost of compensation from its revenues, with limits up to $1 million for some of the firm's most senior executives. However, a loophole has allowed many public corporations to avoid such limits and freely deduct excessive executive compensation. For example, because of this loophole, if a CEO receives $15 million in compensation in a given year, that amount can cause the corporation's taxable income to decline by $15 million. With the current corporate tax rate at 35 percent, the corporation in this case would pay less tax to the U.S. Treasury, up to 35 percent of $15 million, leaving the corporation's shareholders to bear only $9.75 million of the $15 million cost of executive pay, while U.S. taxpayers foot the remaining $5.25 million. The Stop Subsidizing Multimillion Dollar Corporate Bonuses Act would allow a public corporation to deduct compensation up to only $1 million. Using the same example, this would mean that corporate shareholders would bear $14.65 million of the $15 million in compensation.…”