Great article Neal. This is going to be a trainwreck.
It takes a truly moronic mindset to consider tax increases in a complete and total economic collapse. Double some tax rates while the global GDP plummets double digits in 2021.
By the way, did you see the CEO tax in San Francisco they just voted?
Here is a write up I read about it:
Secondly, San Franciso passed the CEO tax. The tax applies to companies in which the highest-paid managerial employee earns 100 times more than the median worker in San Francisco. Businesses above this 100 to 1 threshold pay an extra surcharge on their gross receipts. The greater the inequality, the bigger the tax. Companies with an executive earning 200 times the median worker in the city incur a 0.2% tax, all the way up to 0.6%. For large firms (businesses with more than $1 billion in gross receipts and 1,000 employees nationwide), the tax is applied to up to 2.4% of its city payroll expenses. The bill is expected to bring in between $60 million and $140 million per year, about 0.4% to 1% of the city’s annual budget.
All sounds good except for the fact that the company is on the hook for this, not the individual. What does anyone think will happen if margins are squeezed? This could happen if the stock package that is usually in the compensation plan moons.
Oops, time to lay some people off. I doubt the highly paid CEO will be the one let go.
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Yeah I have seen some things about the SF taxes. It’s crazy how they are driving business away.
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New York too.
Baltimore, Detroit, and Cleveland before them.
Some will never learn but I guess with class warfare is more important than economic growth, sensibility is not required.
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It seems sensible to them. In their delusion, they are doing the proper thing.
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