Political Quotes

“Mr. President, I am reintroducing the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act with Senator Blumenthal. This legislation would end special tax exemptions for huge CEO bonuses by closing a glaring loophole that allows publicly traded corporations to deduct the cost of multimillion-dollar bonuses from their corporate tax bills. If executives perform, companies may compensate them however they wish, but U.S. taxpayers shouldn't have to subsidize these massive bonuses. Under current tax law, when a publicly traded corporation calculates its taxable income, it is generally 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 relating to performance-based compensation has allowed many public corporations to avoid such limits and freely deduct excessive executive compensation. To illustrate how this loophole works, if a CEO receives $1 million in cash compensation and $14 million in performance-based compensation in a given year, the public corporation's taxable income would decline by $15 million. With the current corporate tax rate at 35 percent, the corporation in this case would receive a tax giveway of $5.25 million. The Stop Subsidizing Multimillion Dollar Corporate Bonuses Act puts an end to that giveaway and limits public corporations to a single $1 million per employee deduction as was originally intended.…”