Target: Senator Jack Reed and Senator Richard Blumenthal
Goal: Support senators’ efforts to protect taxpayers from subsidizing already well-paid CEOs
Taxpayers pay $5 billion each year towards a government subsidy that benefits high-powered and well-paid executives. Two senators are currently working on legislation that would stop this.
Since 1993, the United States government has allowed Chief Executive Offers to write off performance-based pay as a tax deduction. Due to a loophole in the legislation, executives are able to implement unlimited write-offs by formatting compensation packages in such a way that avoids paying taxes on corporate earnings. Because of this, taxpayers are subsidizing an extremely high amount of money for already wealthy executives who are often overpaid for their work.
Senators Jack Reed and Richard Blumenthal are proposing legislation that will eliminate this loophole and make corporations accountable for paying executives. Their legislation is entitled the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act, and seeks to create a more just tax code and puts the responsibility of payment in the hands of the corporations, rather than the government and taxpayers.
Reed and Blumenthal have created this legislation because they believe that corporations should be paying for their executives’ salaries, and that corporate bonuses should not be coming out of the pockets of American taxpayers. The senators disagree with the tax breaks that corporations have been able to receive through this legislative loophole, citing the Institute for Policy Studies report that said that 25 of the 100 highest-paid CEOs of corporations made more money than their corporation paid in federal income taxes in 2010. Their bill will allow corporations to only deduct up to $1 million in pay for each employee, ideally stopping the monetary burden on taxpayers of lower tax brackets.
By signing the petition below you will be supporting the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act, standing in protest against high-powered executives who are profiting off of American taxpayers.
Dear Senators Jack Reed and Richard Blumenthal,
The corporate tax system in the United States has many complexities and failures that are creating extreme inequalities and wealth gaps across the United States. Creating solutions to these gaps and ending unfair policies is necessary to allow for the prosperity of all United States citizens.
I am writing you to support your efforts to pass the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act. The steps that you are taking to stop corporations from using taxpayer dollars for tax breaks are commendable. This bill will stop corporations from using a legislative loophole that has allowed them to benefit off of individuals in lower tax brackets than corporate executives, and I think that this is a important step in removing the wealth burden on American taxpayers. Thank you for the work you have done so far and I hope that you continue to make policy changes that support individuals in the United States who are often underrepresented and overlooked.
[Your Name Here]
Photo Credit: 401(K) 2012 via Flickr