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Tuesday, February 14, 2023
Doran Presents Govt Compensation And Company Governance At the moment At Georgetown
Michael Doran (Virginia; Google Scholar) presents Govt Compensation and Company Governance (reviewed by Sloan Speck (Colorado; Google Scholar) right here) at Georgetown at present as a part of its Tax Regulation and Public Finance Workshop hosted by Emily Satterthwaite and Dayanand Manoli:
Over the previous 4 a long time, Congress has repeatedly used tax coverage to deal with executive-compensation practices, most notably by golden-parachute penalty taxes (enacted in 1984), a $1 million cap on compensation deductions (enacted in 1993 and expanded in 2017), and penalty taxes on nonqualified deferred compensation (enacted in 2004). The vital assumptions underlying these efforts are, first, that sure options of government pay characterize a failure of company governance and, second, that tax coverage can appropriate that failure. The primary assumption might or is probably not appropriate; the theoretical and empirical arguments about it stay unresolved. However the second assumption is more and more untenable. Penalty taxes have been largely ineffective in altering executive-compensation practices within the ways in which legislators intend; in lots of situations, they really exacerbate the options of government pay that concern Congress within the first place.
Most just lately, the 2017 enlargement of the $1 million deduction cap is a very misguided effort that probably will do little greater than improve the financial burden of the company revenue tax borne by buyers and rank-and-file employees.
https://taxprof.typepad.com/taxprof_blog/2023/02/doran-presents-executive-compensation-and-corporate-governance-today-at-georgetown.html
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