According to a recent study reported in an article by David Kocieniewski in today’s NY Times, 25 top US companies paid more to their leaders in 2010 than they paid to the federal government in taxes. What’s wrong here?
The companies that include eBay, Boeing, General Electric and Verizon averaged $1.9 billion each in profits. A variety of shelters, loopholes and tax reduction strategies, however, allowed the companies to average more than $400 million each in tax benefits. Verizon, which earned $11.9 billion in pretax US profits, received a federal tax refund of $705 million. The compensation package of the company’s CEO was $18.1 million. EBay reported pretax profits of $848 million and received a $113 million federal refund. EBay’s CEO collected a compensation package worth $12.4 million.
A spokesman for the research group that conducted the study, commented: “Instead of sharing responsibility for addressing our nation’s fiscal challenges, corporations are rewarding CEOs for aggressive tax avoidance.”
What’s wrong here in terms of the values that drive certain leaders? What’s wrong here in terms of shared “sacrifice” for closing the deficit? Do you think the Congressional committee of 12 will recommend adjustments to this situation as part of their package of recommendations?
sacredlead 