Somebody Needs to Work on Their Math Skills

B-Daddy left a link to this NYT article in a comment on another post. Dig what it says.

WASHINGTON — The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.

Now check out who pays taxes.

If you make over $388K, you pay 22.8% in taxes,
if you make over $153K, you pay 20.7% in taxes,
if you make over $108K, you pay 18.9% in taxes,
and so on, getting smaller as you go down the pay scale.

The top 10% of all earners pay about 71% of all taxes. If they put a cap on salaries, they will destroy their tax base. How will they pay for all that groovy spending?

Oh, I forgot. The Money Fairy.

Now on the positive side: Also in the proposal discussed in the NYT article is this little bit, which I like a lot.

It will propose that many kinds of derivatives and other exotic financial instruments that contributed to the crisis be traded on exchanges or through clearinghouses so they are more transparent and can be more tightly regulated. And to protect consumers, it will call for federal standards for mortgage lenders beyond what the Federal Reserve adopted last year, as well as more aggressive enforcement of the mortgage rules.

Jumping Jupiter, we've needed this for a long time. All these wacky financial instruments are little better than gambling with a blindfold on. This would be something very, very good.