From examining many Proxy Statements filed with the SEC, there are so many executives receiving Total Compensation in 2011 of in excess of $10 mil, which would be considered extravagant by the overwhelming majority of US citizens.
On the other hand, many of the unemployed for all of 2011 received annual unemployment compensation of roughly $10,000.
Thus, an executive making $10 mil is making 1,000 times what an unfortunate unemployed person makes. This is a moral outrage.
Also, many of the underemployed work two or three part-time jobs, frequently in retail, and get paid right around the Federal minimum wage, or only slight above it. Thus, this underemployed person could well receive total compensation in 2011 of roughly only $20,000.
An executive making $10 mil is making 500 times what the above unfortunate underemployed person makes. This is also a moral outrage.
My recommendation here is that a company, both C corporations and the various pass-thru entities, not be allowed to deduct, for US Federal Income Tax purposes, any of the total compensation above $20 mil of any of their employees, and further be allowed to deduct only 50% of the total compensation above $10 mil, but less than $20 mil, of any of their employees.
Further, my recommendation here would raise the US Federal Minimum Wage by a substantial percentage increase. In addition to fairly narrowing, at least by a bit, the huge economic gap between the top executives of a corporation and the workers at the bottom of this same corporation, this would also provide a very robust, desperately-needed US economic stimulus.
The money raised by the above two proposals would then be used to extend the Unemployment Compensation benefits. In addition to also narrowing, at least by a very small bit, the huge economic gap between the top executives of a corporation and
the unfortunate unemployed, this would also
provide a very robust US economic stimulus, which will help at least some of the unemployed to reach employed status.
