Is Nancy Pelosi's golden-parachute talk real or a fraud?

[BuyingThyme]

It was my understanding that the way they usually approach this is to put a ceiling on the amount that could be used as a tax deduction. In other words, they could pay as much as they want, but only so much could be deducted as a business expense come tax time.

Does anybody know if they used a different approach this time?

[fed_up_mother]

1. fraud

When you're talking about income in the billions and billions of dollars, does it really matter if ten million in salary or bonus isn't deductible as a business expense?

What do you think? :(

[BuyingThyme]

3. My question is to whether or not they found a way around that approach.

[On the Road]

2. Unless It Were Phrased in Terms of Taxes

capping compensation would be a very unusual kind of regulation and subject to legal dispute or political fallout.

[BuyingThyme]

4. So, despite what the Speaker just said, this bill will subsidize

CEO salaries to the hundreds of millions?

[On the Road]

7. No, It Will Discourage Golden Parachutes

and tax companies that provide them rather than prohibit them.

[Dumak]

5. if that's all it is then it would be a mere political stunt to put the bill through

[BuyingThyme]

6. And an ugly one at that.

I think she actually borrowed language from the fallout of the Enron scandal.

[leftofthedial]

8. there is no enforceable oversight in the bill

there is toothless language about oversight, but bottom line is everything is discretionary

[HamdenRice]

9. There are two different provisions

One provision outright bans "golden parachutes" for any executive as long as the Treasury has debt or equity of the financial firm.

The other makes compensation above $500,000 non-deductible. In the past, non-deductability of executive compensation not had much of an impact. There already is a provision that makes compensation over $1 million non deductible.