Bailout Executive-Pay Curbs Use Loophole-Rich Tax Law

September 29, 2008

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Date of publication: September 29, 2008

The U.S. Congress is turning to the tax code, long a harbor for loopholes, to penalize excessive executive pay at many companies seeking aid from the federal government's $700 billion bank-rescue plan.

A measure set to be voted on in the U.S. House today cuts by more than half the tax subsidy for compensation paid to the three highest executives at companies that auction at least $300 million in troubled assets to the Treasury. It also denies corporate deductions and imposes a 20 percent surtax on senior officials at those companies who receive large severance packages known as golden parachutes.

Read the full article on Bloomberg.com

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