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The Library => The SGA => Topic started by: Kaos on February 05, 2009, 12:01:28 PM

Title: Capping compensation
Post by: Kaos on February 05, 2009, 12:01:28 PM
With this new "stimulus" package, I am really afraid the country is roaring toward an Orwellian nightmare. 

The One says decrees that companies must cap the compensation of executives at an arbitrary $500,000 number that he yanked out of his ass. 

The entire basis of the free market system is that companies who make intelligent decisions survive and thrive.  Those that do not -- well, they don't. 

I am convinced that buying our way out of the current economic "crisis" (which I honestly consider to be largely manufactured by scare tactics from the media, which in turn fuel panic, which in turn fosters more fear tactics) is the wrong approach. 

Dictating how businesses may do business -- and how they compensate their employees -- reaches far into a Big Brother world where everything is under the control of one master government official.  You know, like a dictator. 

It's a recipe for disaster in my opinion.  Where has common sense gone? 
Title: Re: Capping compensation
Post by: Ogre on February 05, 2009, 12:27:49 PM
Wealth envy has come to Washington.

Obama supporter:  "Yeah, he's sticking it to those evil rich bastards!  Fuck my CEO, he's not out here on the line doing any real work."

The CEO of their company leaves for greener, more lucrative pastures, and no talented CEO wants to come in only making $500k.  Eventually their company goes bankrupt and the Obama supporter loses his job.  Now he's dependant on the gubment for a handout, and the government grows bigger and stronger.  Rince, recycle and repeat 50 million times, and that's what we're about to get.

Title: Re: Capping compensation
Post by: ggraf71 on February 05, 2009, 01:22:06 PM
With this new "stimulus" package, I am really afraid the country is roaring toward an Orwellian nightmare. 

The One says decrees that companies must cap the compensation of executives at an arbitrary $500,000 number that he yanked out of his ass. 

The entire basis of the free market system is that companies who make intelligent decisions survive and thrive.  Those that do not -- well, they don't. 

I am convinced that buying our way out of the current economic "crisis" (which I honestly consider to be largely manufactured by scare tactics from the media, which in turn fuel panic, which in turn fosters more fear tactics) is the wrong approach. 

Dictating how businesses may do business -- and how they compensate their employees -- reaches far into a Big Brother world where everything is under the control of one master government official.  You know, like a dictator. 

It's a recipe for disaster in my opinion.  Where has common sense gone? 

Will the same rules apply to lobbyist's compensation packages for our own congressmen and house members? I highly doubt it.
Title: Re: Capping compensation
Post by: JohnDeere on February 05, 2009, 02:08:25 PM
Orge hit on what I was thinking.

Certain Executives are like 1st Round Draft Picks. If you want offensive production (to make money in the business world) you need the best talent you can buy.

If I was a CEO that would be hit by this salary cap; I'd just take the year off.
Title: Re: Capping compensation
Post by: GarMan on February 05, 2009, 02:18:30 PM
Orge hit on what I was thinking.

Certain Executives are like 1st Round Draft Picks. If you want offensive production (to make money in the business world) you need the best talent you can buy.

If I was a CEO that would be hit by this salary cap; I'd just take the year off.

It's the first step towards nationalizing the private sector.  They're going to replace excellence with mediocrity.  That's all there is to this.  Just look at how the government runs things...  And, look at what has happened to Western Europe...  Cesspools of mediocrity... 
Title: Re: Capping compensation
Post by: Ogre on February 05, 2009, 05:52:13 PM
There is another piece to this puzzle that I dn't think has been thought through by our brilliant leaders:

How much tax revenue will the Imperial Federal Government miss out on by limiting these CEO's to a $500k/year salary?  I mean, these are the top .001% of tax earners that are paying 10% of all federal income taxes. 

For example, lets say I'm Mr. Charles E. Orwin.  I bring in $10 million a year.  That means I pay roughly $3.5 million a year in income tax.  If you limit my compensation to $500k/year, I am only paying roughtly $147k in income tax.  That's a difference of $3.35 million dollars, and that' s just one CEO.

With the impending pork package, something is going to have to give.  You can't cut off a large portion of the income tax you are bringing in while at the same time spending like a drunken sailor. 

We're fucked.  Fucked hard.  I'm up for migrating to another country - who's with me?
Title: Re: Capping compensation
Post by: AUTiger1 on February 05, 2009, 06:00:57 PM
I'm up for migrating to another country - who's with me?

Ireland or Scottland?
Title: Re: Capping compensation
Post by: Ogre on February 05, 2009, 06:02:36 PM
Ireland or Scottland?

Actually, I'm thinking New Zealand.
Title: Re: Capping compensation
Post by: AUTiger1 on February 05, 2009, 06:08:17 PM
Actually, I'm thinking New Zealand.

I could go there just as easily.
Title: Re: Capping compensation
Post by: Kaos on February 05, 2009, 06:12:03 PM
Actually, I'm thinking New Zealand.

When I explained the concept of income taxes to my daughter (9) she suggested a move to Australia.
Title: Re: Capping compensation
Post by: Tarheel on February 05, 2009, 11:23:05 PM
There is another piece to this puzzle that I dn't think has been thought through by our brilliant leaders:

How much tax revenue will the Imperial Federal Government miss out on by limiting these CEO's to a $500k/year salary?  I mean, these are the top .001% of tax earners that are paying 10% of all federal income taxes. 

For example, lets say I'm Mr. Charles E. Orwin.  I bring in $10 million a year.  That means I pay roughly $3.5 million a year in income tax.  If you limit my compensation to $500k/year, I am only paying roughtly $147k in income tax.  That's a difference of $3.35 million dollars, and that' s just one CEO.

With the impending pork package, something is going to have to give.  You can't cut off a large portion of the income tax you are bringing in while at the same time spending like a drunken sailor. 

We're fucked.  Fucked hard.  I'm up for migrating to another country - who's with me?

Excellent angle on this Ogre.  I had touched on this revenue stream problem with the grossly enlarged S-CHIP Bill recently signed by The ONE.

The funding for that program is entirely generated by taxes on tobacco products...this is almost certainly a diminishing source of income with the higher taxes and the trend towards fewer and fewer people using tobacco products.  There will not be enough revenue generated to fund this program.

Yes, you're right...we're fucked.
Title: Re: Capping compensation
Post by: Tarheel on February 05, 2009, 11:27:45 PM
With this new "stimulus" package, I am really afraid the country is roaring toward an Orwellian nightmare. 

The One says decrees that companies must cap the compensation of executives at an arbitrary $500,000 number that he yanked out of his ass. 

The entire basis of the free market system is that companies who make intelligent decisions survive and thrive.  Those that do not -- well, they don't. 

I am convinced that buying our way out of the current economic "crisis" (which I honestly consider to be largely manufactured by scare tactics from the media, which in turn fuel panic, which in turn fosters more fear tactics) is the wrong approach. 

Dictating how businesses may do business -- and how they compensate their employees -- reaches far into a Big Brother world where everything is under the control of one master government official.  You know, like a dictator. 

It's a recipe for disaster in my opinion.  Where has common sense gone? 

While The ONE and his socialist friends are being hyper-critical of the compensation of the bailout executives perhaps someone on the right side of the spectrum should suggest that The ONE's compensation be examined...I wonder what all of the perks are worth that The President gets besides his salary (which I know is under the cap) and free use of one of the finest mansions in America...along with his private jet...private helicopter...limousines...etc.  Maybe in these 'hard times' The ONE needs to lead by example.