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Forum Post: Corporate tax rate solution

Posted 12 years ago on Oct. 19, 2011, 6:20 p.m. EST by KTChi (9)
This content is user submitted and not an official statement

Corporate tax rate should be based on the ratio between top executives' compensation and average employee's compensation. The higher the ratio, the higher the tax rate; the lower the ratio, the lower the tax rate. Corporations can determine their tax rate by their compensation structure. To maintain a low tax rate and increase compensation for their executives, the corporation would have to pay more to their employees. I would exempt the compensation of the founder from the ratio.

Talk amongst yourselves.

8 Comments

8 Comments


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[-] 2 points by Mcc (542) 12 years ago

We are the largest consumer market in the world. No other nation even comes close. So we should get tough with Wall Street corporations and say. "Listen up. You will pay your taxes if you want to sell your product in the United States. You will reduce the gap between executive pay and worker pay if you want to sell your product in the United States. You will pay for your own research and development. You will pay for your own infrastructure. You will follow the rules or you will not be allowed to sell your product to the largest consumer market in the world.

[-] 1 points by NYCJames (113) 12 years ago

The problem with this is it ignores the simple reality of global competition. You can't force non-American corporations to this rule so top flight talent will simply go elsewhere. That's a brain drain American corporations may not be able to afford.

If you are going to have a "salary cap" or "luxury tax" (to use sports terms) it has to be for "the whole league" or it isn't very valuable. Sorry, I disagree. :/

[-] 1 points by KTChi (9) 12 years ago

I may be mistaken but I believe the executive compensation ratio is more out of whack in the US than it is elsewhere. Could we not get the ratio down to 30 or 40 to 1 and still be competitive?

[-] 1 points by NYCJames (113) 12 years ago

KTChi, you may be right, I don't know the exact numbers, but certainly if they are the highest here that guarantees we have top flight quality. Thus why we have numerous non-American CEOs running American corporations.

[-] 1 points by KTChi (9) 12 years ago

I think we are overpaying for this "talent", giving executives entrepreneurial pay for managerial work.