HOORAY for Obama!! Talking of capping salaries!

[carres1973]

I am LOVING that Obama is talking about capping the salaries of executives from companies who received federal bailout money. It's about time!!!

http://www.cnn.com/2009/POLITICS/02/04/obama.executive.pay/index.html

Carrie

 

[dss62467]

Yeah, this was actually suggested by Senator Bernie Sanders with the original bail-out, but was rejected. Now I guess the lesson has been learned the hard way.

What I like is that because of Obama's publicizied commitment to high ethics in his administration, the questionable ethics of the politicians are coming to light. All these tax frauds...come on! You know when you're trying to pull a fast one on the IRS, especially if you're in government. If you don't, then that's just scary.

I like Daschle and I'm very disappointed in him. I don't exactly understand why he'd be expected to pay taxes on the limo driver that was being paid by someone else. In my eyes. that's like a gift. But then again...I don't pay attention to tax laws very much. I can't afford a housekeeper, or driver. I can't even pay someone to plow my driveway.

I do like that there is less of a tolerance now.

 

[LauraMax]

Just saw this! Loving it!

Of course, the execs have already started their outcry that these wonderful CEOs/CFOs/VPs etc. will walk if their salaries are slashed. Well, let them walk! As far as I'm concerned their public employees now, & if they don't like their work conditions they can find another place to earn their pay.

Let's just hope they don't join a government union!

 

[dss62467]

Just saw this! Loving it!

Of course, the execs have already started their outcry that these wonderful CEOs/CFOs/VPs etc. will walk if their salaries are slashed. Well, let them walk! As far as I'm concerned their public employees now, & if they don't like their work conditions they can find another place to earn their pay.

No kidding! They're the ones who hosed the companies in the first place, so I don't think that would be a big loss.

 

[morningstar]

I love that he admitted he screwed up - and admitted it so comprehensively. This wasn't a quick, whoops, hope no one noticed that little boo-boo!

 

[morningstar]

don't exactly understand why he'd be expected to pay taxes on the limo driver that was being paid by someone else. In my eyes. that's like a gift. But then again...I don't pay attention to tax laws very much. I can't afford a housekeeper, or driver. I can't even pay someone to plow my driveway.

I believe that would be considered a taxable benefit. In Ontario, if you have a parking space at work paid for by your employer, a company car, etc., you have to pay taxes on it just as if the money that your company paid for that was part of your salary.

 

[carres1973]

Just saw this! Loving it!

Of course, the execs have already started their outcry that these wonderful CEOs/CFOs/VPs etc. will walk if their salaries are slashed. Well, let them walk! As far as I'm concerned their public employees now, & if they don't like their work conditions they can find another place to earn their pay.

Let's just hope they don't join a government union!

I figure if the economy is as bad as everyone is claiming it to be, where are they going to go and who is going to want them? They have been earning millions of dollars over the past years. If they were smart businessmen and bankers, they would have saved for an emergency and retirement!

Carrie

 

[ldy_solana]

good,b/c after the first round of bailouts went out many gave themselves little bonuses here and there adding up to nearly 5 billion or so. WTF??? i can't understand why one would need a raise or a bonus if they claim their business will fail without government money. another thing if you want government money then expect the government to ask questions about what you are going to do with that money!! don't get pissy b/c congress wants to know what you are spending the money on. if you or i walked into a bank for a business loan better be sure they will ask what you plan on doing with the money,what your business is going to be, what is your plan, and most likely a blood sample just to be sure. why should congress and the prez(even though i didn't vote for him i will still stand behind any man/woman that is president) hold these doofuses to any different standards then any other business manager or owner out in the world. just b/c you work for a "big" company. big or small you are still a business with your hand out so expect some questions. don't like it there is the door don't let it hit you on the way out while the next guy that NEEDS a job and willing to WORK for his money is coming in.

just my 2 cents and you can keep the change
kassia

 

[hottiescientist]

I'm glad that this happened and the message it sends but I wonder how effective its going to be in the end, you know? There's no way legally (without a catfight) they can retroactively take back the bonuses that already happened. And its only for executives I see too. Don't get me wrong -- I am HAPPY -- but I guess the pragmatic part of me is going...ok...well...they keep on wasting our money until the media reports and tattles on them. Maybe I'm just pessimistic at this point about it...if anyone wants to lift me out of it, please do so!

 

[LauraMax]

I'm glad that this happened and the message it sends but I wonder how effective its going to be in the end, you know? There's no way legally (without a catfight) they can retroactively take back the bonuses that already happened. And its only for executives I see too. Don't get me wrong -- I am HAPPY -- but I guess the pragmatic part of me is going...ok...well...they keep on wasting our money until the media reports and tattles on them. Maybe I'm just pessimistic at this point about it...if anyone wants to lift me out of it, please do so!

I'll try. I am optimistic & I refuse to let tough economic times or sleazy bankers bring me down or turn me into a cynic.

Anyway, they might not be able to take bonuses back, but they can impose sanctions, & they can hire govmt representatives (hey, job creation!) to watch every single move these jerks make, right down to wiping their rears in the restroom.

And if all else fails: IRS, audit every single damn one of them!

 

[SirenSongWoman]

Oh yea, and then some little guy and the floor of the NYSE was whining to a reporter on CNN today about how being forced to explain where their big monetary GIFT is being used means "the government is getting way too involved in private business." WTF??? They didn't mind taking our tax dollars and re-decorating their offices with $1,500 trash cans(!) but now that the government is demanding to know what these people are doing with OUR money, they're "too involved???" The somewhat stunned reporter was like "Oh wow... I know our viewers at home are... um... shouting at their tv's right now..." All the while that disconnected little moron smirked.

About the tax cheats, ask yourself this: Why is it that when ordinary blue-collar Americans cheat on THEIR taxes the IRS is all over them like flies on sh*t. However, when high-earners, like (very public) politicians, bankers and corporate CEOs cheat on THEIR taxes, the IRS doesn't react until the cheating comes to light all on its' own? Is this not yet another example of the haves vs. the have-nots? Really. It must be great to have buckets of cash and not have to pay your taxes until somebody happens to notice... It's really upsetting when people I've always had respect for turn out to be be engaging in private behavior that's so offensive and insulting.

 

[chefkate]

well said, Stacey!

 

[baylian]

Which all of this bodes the question - why was Geitner allowed to become the Sec. of the Treasury when he didn't pay $34000 in back taxes from 2001-2004? He should have taken a powder just like Daschle.

Does ANYONE vet these people?????????????

 

[kathryn]

Oh yea, and then some little guy and the floor of the NYSE was whining to a reporter on CNN today about how being forced to explain where their big monetary GIFT is being used means "the government is getting way too involved in private business."

Oh, that is just choice!

 

[icumom]

I'm glad that this happened and the message it sends but I wonder how effective its going to be in the end, you know? There's no way legally (without a catfight) they can retroactively take back the bonuses that already happened.

Ahhh, but there IS going to be a hit....some nurse pals of mine,doing homehealth in the affluent NJ suburbs told me of a chatty attorney who was telling them that a new type of ambulence chaser has been born- that all the lower fatcat execs, canned and now unemployable,with spouses who have spent them into unthinkable debt are filing against their employers for fraud, mismanagement and causing huge headaches and freezing of assets of these parachuted ones...will it get anywhere? Who knows, but it will cost a fortune to battle it from both sides....Let the games begin.

And DASHLE! Well liked by both parties, who woulda thunk it?!

 

[ladubose]

I am so thankful to finally have a President who will stand up to these greedy & corrupt CEO's & politicians, but I worry that he will be taken out, there is no end to the degrees people will go to protect their wealth and status. Without our support, the support of the masses, I worry what will happen. We have to collectively stand together and say "NO MORE!" and know that we have a leader who can unite us and give voice to us I hope it will be enough to make the change we all want to see.

 

[famousohara]

Perhaps every industry on the public dole should have similar restrictions? Sports franchises that use taxpayer money for their stadiums - limit salaries, universities that receive public tax money - limit salaries, physicians and hospitals that receive federal funds - limit the salaries . . . why stop with banking? And then what is to stop the talent in these industries from fleeing? The trillion dollar crap sandwich coming our way in the form of the next economy bailout is not one I care to take a bite of. Slippery slope my friends. Think about it. There will be disastrous unintended consequences. I disagree with the bailout in the first place - and I disagree with this.

 

[LauraMax]

Perhaps every industry on the public dole should have similar restrictions? Sports franchises that use taxpayer money for their stadiums - limit salaries, universities that receive public tax money - limit salaries, physicians and hospitals that receive federal funds - limit the salaries . . . why stop with banking? And then what is to stop the talent in these industries from fleeing? The trillion dollar crap sandwich coming our way in the form of the next economy bailout is not one I care to take a bite of. Slippery slope my friends. Think about it. There will be disastrous unintended consequences. I disagree with the bailout in the first place - and I disagree with this.

1) as soon as taxpayer funds pay for these people's salaries, yes, the govmt should have some control over them
2) as soon as these organizations start spending taxpayers money inappropriately & frivolously, yes, the govmt should have some control over them.

OK then, you disagreed w/the bailout. Tell me, what's YOUR solution? Would you have allowed the rank & file of these organizations lose their jobs? Meaning more unemployment, less $$$ being spent & therefore less $$$ entering the economy?

And what of the subsidies that have been going to organizations such as tobacco farmers b/c their business has taken such a major hit? When instead of subsidizing income the govmt could have spent money on helping these farmers phase out tobacco & phase in a more profitable crop? Was there a slippery slope there too?

Please, tell us, what's your alternative to the "slippery slope?"

 

[famousohara]

Yes. I do not think the government should be bailing out any industry. Let the market place work the way it was intended. If businesses fail, then they fail. If banks lend money out in a risky manner - then they assume that risk and deal with the consequences. The market place should determine the value of a worker - not a union and not the government. The people should decide how to spend their money - the government should not be taxing the heck of us and then telling us where that money will be spent. More money in the hands of the people - and I don't discriminate based on wealth - the more money will find its way back into the economy. The slippery slope I am referring to is socialism.

 

[hottiescientist]

Actually, Laura, you hit something that has been bugging me lately. I see a lot of people talking about how the government is rewarding bad business practices and *that's* what we have the bailouts. We have the bailouts so that the foundation of the financial structure of this society (lower income and middle class) will not get completely hosed and we won't collapse (and then screw up the rich people that depend on that foundation). I wonder why people can't see a little further than right in front of them. I don't like the idea that my money is going to people who took on more than they can chew but I can see that the ultimate failure of all of those people as a collective whole will screw ME up in the end and I am personally invested so that doesn't happen.

That said, I am FURIOUS that the bonuses were given my tax payer money...so just because I think the government needs to step in so the country as a whole can prosper doesn't mean I'm not upset with how its been spent. But I also realize that Barney Frank -- for all his royal screwups that have led to the mess -- WANTED to put caps the first time around but they wouldn't let him and our president at the time did nothing -- through his own power or through his treasury secretary -- to make sure Wall Street didn't get fat off of us. We have a new administration, and now we're finally seeing some of this which makes me happy even though I'm completely pessimistic about (re: earlier post). If people are angry that the money went to Wall street the way it did, put the anger squarely where it needs to be.

But to the earlier point, if you go up to the government and you ask for bailout/loan money, there should be standards imposed and serious oversight to make sure the money is put the good use. Once they make good on their loan and they're not using tax payer money, they can go do whatever they want. And I know for at least universities, that they do undergo review from how they use public money whether its through the state for a state school or if you're a private institution and you're receiving NIH funds. You can't clamor for right of capitalism when you're asking to government for socialism.