Political Quotes

“Mr. President, today I am reintroducing the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act with my colleague, Senator Blumenthal. This bill closes a loophole that allows publicly traded corporations to deduct an executive's pay that exceeds $1 million from their tax bill. Under current tax law, when a public 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 $15 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 cut of $5.25 million. The Stop Subsidizing Multimillion Dollar Corporate Bonuses Act would instead allow a public corporation to deduct all forms of compensation up to only $1 million per employee. Using the same example above, a profitable public corporation, after deducting only $1 million from the $15 million in CEO compensation, would then pay $4.9 million in taxes.…”