Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
Customize
User Settings
Styles:
LAN Parties
Upcoming one-time events:

Regularly scheduled events

Evening Mobilization

Post Comment
Enter the details of the comment you'd like to post in the boxes below and click the button at the bottom of the form.

20. Re: Evening Mobilization Feb 22, 2012, 10:47 Beamer
 
wtf_man wrote on Feb 22, 2012, 10:18:
Beamer wrote on Feb 22, 2012, 09:50:
But yeah, the amount of changes we've seen to how our CEOs operate ever since the top tax bracket dropped from >70% to <40% is insane.

I'm sorry, but NOBODY should be in a 70% tax bracket. That's fuckin' insane.

At the same time... these asshats that are in the 35%-40% brackets shouldn't be able to CHEAT their way down to 15%, either.

You understand marginal tax rates, right?

If you do I'm sorry, but to assume that no one should be in it I'd guess you don't. It means that income after a certain amount is taxed a certain percentage.

So let's use the 1962 tax brackets, adjusted for inflation:
The first $30k is taxed 20%
The next $30k is taxed 22%
The next $30k is taxed 26%
The next $30k is taxed 30%
This goes up until $2.2 million, which is taxed 90%, and 2.9 million, which was taxed 91%.

This doesn't mean that a guy earning 3 million paid 91% in taxes, it just means he paid 91% on every dollar over $2.9 million. He made 9 cents for every buck above that.

Essentially it was a salary cap set by the government. What incentive would a company have to pay their CEO above $2.9 million? Any money to him just goes to the government. Every dollar paid to him was worth only 9 cents to him, which was nothing considering how much he already earned (and kept.)

So salaries were capped. Where did that money go, then? It would be reinvested into growth. It would be spent on other employees. There was no strong desire to cut jobs because those savings weren't as important. These days those savings are considered very important because enormous chunks of them go to very few individuals (just look at what happened to Black & Decker.)
 
-------------
Music for the discerning:
http://www.deathwishinc.com
http://www.hydrahead.com
http://www.painkillerrecords.com
Reply Quote Edit Delete Report
 
Subject
Comment
     
 
      ;)   ;)   :(   :(   :o   :o   %)   %)   :)   :)   :|   :|   ;P   ;P   X|   X|   :D   :D   More
 
Login Email   Password Remember Me
If you have a signature set up, it will be automatically appended to your comment.
If you don't already have a Blue's News user account, you can sign up here.
Forgotten your password? Click here.
 
          Email me when this topic is updated.
 

Special Codes

  • b[bold text]b
  • i[italic text]i
  • u[underline text]u
  • -[strikethrough text]-
  • c[code text]c
  • +[bullet point]+
  • q[quote text (indented)]q
  • [quote="Author"]quote text (indented)[/quote]
  • [url=Link]text[/url]
  • r{red text}r
  • g{green text}g
  • b{blue text}b
  • m{maroon text}m
  • s{secret text (shows in the background colour)}s

Forum Rules

  1. Disagree all you want but attacks of a personal nature will not be tolerated.
  2. Ethnic slurs and homophobic language will not be tolerated.
  3. Do not post spam, links to warez sites, or instructions on how to obtain pirated software.
  4. Abusing the forums in any manner that could be construed as 'griefing' will not be tolerated.


footer

Blue's News logo