Criticizing is easy. Just ask anybody. They'll gladly tell you what's wrong with Obama, Bush, the Democrats, Congress, the Republicans, or frankly, the way you mow your grass. The best way to throw a true "kvetch" (complainer) off his or her game is to ask them a simple question, "So, what would you do?" Chances are, you'll get an answer that would make all the aforementioned groups seem brilliant by comparison. Criticizing is easy, finding solutions is hard.
Since I do more than my share of critiquing, I like to try my hand at finding solutions from time to time. It's my way of keeping myself from ever becoming a 'kvetch'.
With
earning season in full swing this week, you'll soon be hearing about huge profits and huge bonuses. I don't really have as much of a problem with people making large bonuses as some of my more Liberal friends do. If you can make me a $100 billion and all I have to do is pay you $100 million-
sign me up! In fact, contact me right here and leave your number! I'll call you right back! I have no problem with "over-paid" sports figures, radio show hosts, movie stars, or anyone else who's helping someone else get rich and breaking off a piece for themselves. It does drive me crazy that some freakishly tall mental midget gets $20 million for throwing a round ball through a hoop while an emergency room nurse makes $40k. But as long as the stadium is full and the money's flowing, why not?
I believe most people think like me on this one. The real problem comes when someone
loses $100 billion and
still gets paid his $100 million. That what drives people to start shopping for sniper rifles and high towers.
The Obama Administration is now paying lip-service to the idea of limiting executive's pay. That feels a tad un-American to me. Like I said before, if you can make me rich, I don't want the Government telling me when it's a good deal. I'll take my own chances. Thankyaverymuch. What I think someone is worth is my business. However, taxing profits is as American as apple pie.
So, here's my idea.
Let's base a bonus tax on the amount of money given to the top management of any major company on the profit they produce. It would work like this; You can pay your CEO, CFO, etc., anything that you want. However, only .01% of the amount of your profit payed in bonuses will be "bonus tax" free. For instance, if my CEO makes my company $100 billion, I can pay him up to $100 million bonus tax free! If I pay him 200 million, the extra 100 million causes the profit to get taxed on a sliding scale. $100 billion profit times .01% = $100 million with no tax, $200 million is .02% so the $100 billion profit gets taxed an additional .01%. If the bonus was $300 million, then the tax on the profits would jump to .02% and so on. The highest tax you can put on the profits is 100% and the lowest tax liability for those that don't make a profit would be the equivalent of the bonuses they pay.. The beauty of this plan is that the higher the ratio of bonus to profit-the worse they get taxed. If they choose to give out bonuses of $10 million when the company loses money, that's fine, the tax will be $10 million. I doubt the stockholders will go for that.
One of the little games our corporate-bought-and-paid-for politicians like to play is the "It's just too difficult" game. That's the game where they try something they know will fail and then say, "Well, we tried, I guess it's just too hard." That's the game they're going to try to run past you on these corporate bonuses. If it's possible to stop me, your average worker, from making any money on the side (just look at how they tax my kid's paper route, your waitresses' tip, or someone preparing your taxes) then, I think we could do this with very little effort. Don't buy for one minute that it "just can't be done." It can, and should, be done. H.C.