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.
Does executive pay make up a large proportion of high-income earners?
ReplyDeleteIntuitively, I would have thought entrepreneurs, financial investors, etc. account for a much larger share of the ultra-high income group.
But I don't have any figures to prove or disprove it.
Thomas, I didn't look into that, but I would bet that it's a non-negligible amount. Of course, this is just the beginning. As we all know, Big Oil and Big Pharmas are equally evil ...
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