Obama's Call for Reform in Executive Pay is Screwing His Own Constituents

New York Governor David Paterson was on CNBC this morning discussing his state's budget problems. Until recently, the state of New York has annually paid tens of billions of dollars in federal tax more than it has taken from the federal government. In the past, New York has almost always been a source of revenue for the rest of the country....not a negative drain. His main message was pleading for the populist rhetoric attacking executive bonuses(pay) to stop. By attacking executive pay, the liberals and uninformed people of New York seem to just now be learning a hard lesson. If the "Fat Cat" doesn't get paid, he doesn't get taxed either. The only way they get tax revenue to fund all their welfare programs is to have someone get paid first so that income can be taxed.

Since firms like Goldman Sachs are doing what the uninformed populist crowd has demanded..... and have shifted executive compensation to be in stock and spread out over many years......the populists and US taxpayers are going to reap the cost of their uninformed ranting. Instead of being happy about the results of their ignorant attacks on the capitalist system, the populists are only now realizing that the money saved DOES NOT GO TO THE TAX PAYER.......it stays in the company! The shareholders, the only people who should have had a say in executive compensation in the first place, are benefiting... as well as foreign tax authorities.......The ignorant populists have screwed themselves!

Instead of receiving the revenue from local and state and federal income tax on executive pay and bonuses, the money stays in the company, is taxed at a lower corporate tax rate, and is distributed and taxed by authorities throughout the world wherever the company has operations. Taxed, usually outside the US where its best for the company to "recognize" the compensation savings. The money is flowing elsewhere instead of where the "EVIL GREEDY FAT CAT" lives! Not only is the money no longer paid locally, it is not taxed, and even worse not spent locally.

Crabs in a bucket.....