I can not resist posting this example of progressive "Logic"

[CSeeman]

http://www.democraticunderground.com/101638834

The Institute for Policy Studies, a self-described "progressive multi-issue think tank," analyzed the link between tax loopholes and excessive executive compensation and concluded that the loopholes created an "uneven playing field" between large companies and small businesses and led to lost tax revenue.

The latest edition ("Executive Excess 2012: The CEO Hands in Uncle Sam's Pocket") of the institute's annual Executive Excess compensation study found that in 2011, 26 CEOs received more in compensation than their companies paid in taxes, and that the four major tax loopholes contributing to excessive executive pay cost taxpayers about $14.4 billion a year.

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The report critiqued the major tax loopholes, including the preferential treatment of "carried interest" income for hedge fund managers. "Carried interest" income can be taxed as capital gains - at 15 percent tops - instead of at 35 percent, the top income tax rate. The Congressional Budget Office's projected estimate for "carried interest" income - revenue from investment income or dividends - for 2012 to 2021 was $21.4 billion.

Companies can deduct executive pay as a business expense, just as they do inventory and appreciation. Because of a tax rule enacted in the early 1990s that limited the amount of cash that could be deducted to $1 million, corporations have increasingly paid executives in stock options. Corporations can exempt stock option compensation, and other performance-based pay, from taxation.

Wow a connection between tax loopholes and CEO pay.... why not discover a connection between gold and the stuff that comes out of people's ass....

between this and everyone on DU saying the 716 billion is waste. So when liberals cut they are cutting only waste and abuse but when the Republicans cut it is only money going to seniors....

[thundley4]

and that the four major tax loopholes contributing to excessive executive pay cost taxpayers about $14.4 billion a year.

It takes liberal thinking to believe that letting people keep their own money is a cost the government bears.

I'm tired of these idiots calling anything in the tax code a "loophole".  They were purposely put there by members of both parties pandering to their big donors.

Obama wants to get rid of loopholes for oil companies, but then wants to give them to wind and solar power companies.  Companies that most likely have donated to him or other DemonRats.

Those will do little to help people in this country, however raising taxes on oil companies, coal or other types of business that Obama doesn't like will hurt all of in higher costs.

[dane]

I am not an accountant, but this does not look right to me?  Is it?

Companies can deduct executive pay as a business expense, just as they do inventory and appreciation

Should it be 'depreciation' that is considered a business 'expense'?

[miskie]

I am not an accountant, but this does not look right to me?  Is it?Should it be 'depreciation' that is considered a business 'expense'?

I don't think it matters in the context of this article.

The point is to demonize the rich, not to report accurately.

The only reason this attack 'works' at all is far too many people don't know how taxes are assessed, so people with an agenda are comparing apples to oranges to make their point.

'Rmoney' isn't skirting income tax laws - the odds are Mitt hasn't earned any new money in a decade. He and his family are living off of capital gains that are monetized for use, and then taxed at 15%, less deductions. As of 2013, the new rate will be 20% before deductions.

And of course, this isn't 'something special' for the 1% --

Anyone who invests their money (not 401K, that's a different story) can enjoy the same benefit.