The 99% tax rate was designed to prevent executives
from essentially "raiding"the company treasury for high
pay which they could get by simply voting/control 100of the
board. Their only "solution" to get higher pay was to
increase the company share price so that they would
then pay the lower capital gains tax. With the people
at the top prevented from simply taking money from the
company treasury, they needed to increase company
performance so that the share price would increase and
that benefited more than just them. Thus you did not
see companies going bankrupt paying CEOs huge
100 million + salaries.
No comments:
Post a Comment