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KILLER_CLOWN
09-01-2011, 07:53 AM
STUDY: 25 Of Highest Paid CEOs Earned MORE Than Their Companies Paid In Taxes, Others Spent More On Lobbying Than Taxes

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Source - Reuters

Reprinted with permission.

(Reuters) - Twenty-five of the 100 highest paid U.S. CEOs earned more last year than their companies paid in federal income tax, a pay study said on Wednesday.

It also found many of the companies spent more on lobbying than they did on taxes.

At a time when lawmakers are facing tough choices in a quest to slash the national debt, the report from the Institute for Policy Studies (IPS), a left-leaning Washington think tank, quickly hit a nerve.

After reading it, Democratic Representative Elijah Cummings, ranking member of the Committee on Oversight and Government Reform, called for hearings on executive compensation.

In a letter to that committee's chairman, Republican Darrell Issa, Cummings asked "to examine the extent to which the problems in CEO compensation that led to the economic crisis continue to exist today."

He also asked "why CEO pay and corporate profits are skyrocketing while worker pay stagnates and unemployment remains unacceptably high," and "the extent to which our tax code may be encouraging these growing disparities."

In putting together its study, IPS chose to compare CEO pay to current U.S. taxes paid, excluding foreign and state and local taxes that may have been paid, as well as deferred taxes which can often be far larger than current taxes paid.

The group's rationale was that deferred taxes may or may not be paid, and that current U.S. taxes paid are the closest approximation in public documents to what companies may have actually written a check for last year.

$16.7 MILLION AVERAGE

Compensation for the 25 CEOs with pay surpassing corporate taxes averaged $16.7 million, according to the study, compared to a $10.8 million average for S&P 500 CEOs. Among the companies topping the IPS list:

* eBay whose CEO John Donahoe made $12.4 million, but which reported a $131 million refund on its 2010 current U.S. taxes.

* Boeing, which paid CEO Jim McNerney $13.8 million, sent in $13 million in federal income taxes, and spent $20.8 million on lobbying and campaign spending

* General Electric where CEO Jeff Immelt earned $15.2 million in 2010, while the company got a $3.3 billion federal refund and invested $41.8 million in its own lobbying and political campaigns.

Though the companies come from different industries, their tax breaks fall into two primary areas.

Two-thirds of the firms studied kept their taxes low by utilizing offshore subsidiaries in tax havens such as Bermuda, Singapore and Luxembourg. The remaining companies benefited from accelerated depreciation.

Shareholders have responded favorably when companies in which they invest keep a tax bill low through legal methods, thereby benefiting earnings. But Chuck Collins, an IPS senior scholar and co-author of the report, said that is a mistake.

"I think it's an exposure of weakness in a company if their profitability is dependent on their accounting department and not on making better widgets," he said.

In prior reports, Collins said, out-sized CEO pay was often a red flag of bigger problems to come. The IPS has been putting a pay report together for 18 years. Among those whose leaders have made the high pay list in years past, only to have their businesses falter: Tyco, Enron and WorldCom.

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Related story:

(Reuters) - Backed by powerful companies spending millions of dollars, Washington lobbyists are fighting in the marble corridors of Congress for a tax break on $1.5 trillion in profits held overseas to escape the U.S. tax man.

When lawmakers return next month from summer break, powerful high-tech and pharmaceutical companies will step up their push for an overseas profit tax repatriation holiday and pose a test for President Barack Obama. (For a graphic please click on r.reuters.com/fuj43s)

The idea has been kicking around for months, gaining only limited traction, but supporters sense their moment may be near, with the economy sluggish and Obama searching for new ways to ignite business investment and create jobs.

A repatriation tax holiday offers just that, advocates say, although critics contend the proposal's promises of economic stimulus are illusory and serve only to mask a tax break costing the United States $80 billion over 10 years.

The White House, so far, has stood firm against a holiday, refusing to consider it outside the context of making broad changes in the convoluted tax code.

Continue reading...

http://www.reuters.com/article/2011/08/24/us-usa-tax-holiday-idUSTRE77N3UV20110824

http://dailybail.com/home/study-25-of-highest-paid-ceos-earned-more-than-their-compani.html

Ace Gunner
09-01-2011, 08:19 AM
nice flag. I'm sure budweiser feels slighted... hahaha

Amnorix
09-01-2011, 09:46 AM
I'm ok with some kind of break on repatriation but it needs to be tied to job growth somehow. Last time, repatriation had no benefit worth the break given.

Chief Henry
09-01-2011, 10:17 AM
Our tax code is whack.

Fish
09-01-2011, 01:12 PM
Corporations are great for America....

Ugly Duck
09-01-2011, 10:54 PM
STUDY: 25 Of Highest Paid CEOs Earned MORE Than Their Companies Paid In Taxes, Others Spent More On Lobbying Than Taxes

Then why do Teapublicans claim that corporate taxes are so high its stifling the economy?

Psyko Tek
09-01-2011, 11:06 PM
they may be morons

NaptownChief
09-02-2011, 06:38 AM
Then why do Teapublicans claim that corporate taxes are so high its stifling the economy?

The majority of private sector jobs come from small business....and small business isn't taking advantage of putting profits overseas. The small business people are the ones getting fisted every time liberals get their bitter, jealous "let's stick it to big business" act rolling.

KILLER_CLOWN
09-02-2011, 07:33 AM
The majority of private sector jobs come from small business....and small business isn't taking advantage of putting profits overseas. The small business people are the ones getting fisted every time liberals get their bitter, jealous "let's stick it to big business" act rolling.

Oh i'm not sure it's a liberal thing, Conservatives let the mega corporations push the little guy out as well. I'm not for sticking it to big business, but we do need to lay down the law with something like "you're either with us or against us" and tax them accordingly.

alnorth
09-02-2011, 08:09 AM
Then why do Teapublicans claim that corporate taxes are so high its stifling the economy?

This isn't a nutty tea party position. They are too high, even Obama has admitted as much. There is also a dizzying array of tax breaks available which for the most part only larger companies can take advantage of. So our smaller businesses and those larger companies who can't take advantage of anything get to pay the full freight of one of the largest corporate income tax rates in the entire world.

We don't have to lose money on a tax cut. Remove all the tax breaks and lower the rate so that we are not completely uncompetitive with Europe.

Saul Good
09-02-2011, 08:14 AM
The entire premise seems funny to me.

"The guy running the company gets more money from the company than the government gets? This is an outrage!"

I thought the purpose of a business was to make money, not pay taxes.

alnorth
09-02-2011, 08:22 AM
The entire premise seems funny to me.

"The guy running the company gets more money from the company than the government gets? This is an outrage!"

I thought the purpose of a business was to make money, not pay taxes.

Pretty much. I didn't bother to address the article in the OP, because the premise is stupid.

If the government gets more than the CEO, fine, but there isn't some holy unwritten ethical law saying the feds should get more money than anyone else.

Fish
09-02-2011, 09:45 AM
Anybody seen this?

http://www.sonyclassics.com/insidejob/

It's a good documentary showing how intertwined our government has become with super corporations. I didn't realize just how many of our "appointed" government officials had come in from huge corporations....

Stewie
09-02-2011, 01:32 PM
Anybody seen this?

http://www.sonyclassics.com/insidejob/

It's a good documentary showing how intertwined our government has become with super corporations. I didn't realize just how many of our "appointed" government officials had come in from huge corporations....

The fallacy is that government is in bed with huge corporations. The fact is that the banks run everything. The gov't and "huge" corporations are at the mercy of the banks.

KILLER_CLOWN
09-02-2011, 01:38 PM
The fallacy is that government is in bed with huge corporations. The fact is that the banks run everything. The gov't and "huge" corporations are at the mercy of the banks.

Lolz the Government gets their bribe money from the mega corporations, and yes the Banks control all of it because they make money out of thin air.

HonestChieffan
09-02-2011, 01:42 PM
I made more than I paid in taxes. That would seem like a good thing .

KILLER_CLOWN
09-02-2011, 01:43 PM
I made more than I paid in taxes. That would seem like a good thing .

I realize some believe corporations are people too, but are you a mega corporation or a real human?

Stewie
09-02-2011, 01:44 PM
Funding the Federal Gub'ment is job 1!

KILLER_CLOWN
09-02-2011, 01:46 PM
Funding the Federal Gub'ment is job 1!

Roll Tide!

Inspector
09-02-2011, 01:54 PM
I get the feeling that I'm supposed to be mad and hate anyone who puts themselves in a successful position. I know people who have worked hard, risked their own money and family security for their own business and have made a huge success of it. I never felt like they were evil or bad. They employ quite a few people. Those people like having jobs.

KILLER_CLOWN
09-02-2011, 01:56 PM
I get the feeling that I'm supposed to be mad and hate anyone who puts themselves in a successful position. I know people who have worked hard, risked their own money and family security for their own business and have made a huge success of it. I never felt like they were evil or bad. They employ quite a few people. Those people like having jobs.

I'm not sure how this pertains to what is being discussed here, I agree with you but the people that you're talking about don't live off of the government(peoples) cheese.

HonestChieffan
09-02-2011, 02:04 PM
The left urge to confiscate what people make is never ending.

Stewie
09-02-2011, 02:09 PM
The left urge to confiscate what people make is never ending.

It's a Kleptocracy.

(I stole that, but laughed out loud.)

FishingRod
09-02-2011, 02:19 PM
"excluding foreign and state and local taxes "
I wish I could “ exclude” state, and local taxes. I could use that money.

Fish
09-02-2011, 02:27 PM
The left urge to confiscate what people make is never ending.

It must be weird going through life where every thought you had was partisan based.

For me, it has little to do with "confiscating" anything from anybody. And it has zero to do with political parties. It's the fact that corporations have become so large and so powerful that they can greatly influence our government. That they can lobby to change our laws for better profit, and that our elected officials submit to that lobbying so generously across the board.

I have no problems with people making money. And I don't need to confiscate any of it. I have problems with giant corps that are too big to fail, that lay off thousands of people while giving CEOs a raise, all in the name of profit.