27 November 2008
Ian Welsh gets this right:
The executive compensation debate is beyond tiresome and beyond stupid. It's not hard to rein in executive compensation, all you have to do is decide what the maximum pay you want someone to be able to receive is and tax most of the rest of it away. The simplest thing is to just count all income equally, tax it all at the same rate, don't allow deductions beyond a certain level (50K or so) and tax all income above, say 1 million at 90%, 95% for all income above 5 million. Don't allow too much income deferral and there you go. Slap on some "in kind" rules for corporations (yes, if your corporation pays for your car, that's salary) and while there will always be loopholes, you'll still rein in the worst excesses.
We've already got all the tools in our tool-chest--we just need to use them.
Posted by Karlo at 12:49 a.m.