4 ms·

Here come the contractors... Or, CEOs receive 50k/yr compensation, but the company will approve a certain discretionary spending amount every year to cover liv

Here come the contractors... Or, CEOs receive 50k/yr compensation, but the company will approve a certain discretionary spending amount every year to cover living expenses for the CEO. This may or may not include dining at the most expensive restaurants around, free travel to anywhere with any arbitrary amount of number of people, house purchases, luxury spending like a yacht... No, these are not regular compensation. We are simply subsidizing the living expenses. There is no concrete amount involved. No sir. Or pick any other number of convoluted schemes to mask "compensation". Best way to do this is the easiest way, raise the corporate tax directly.

bushbaba 3y ago
…they already get that. So this is still progress. Also you could argue that counts as taxable income.
- zrail 3y ago
  In the US the IRS certainly argues that all of that is taxable income.
rcme 3y ago
Or the company creates a trust and names the CEO as the beneficiary. The trust dissolves when the CEO stops working at the company.
kpw94 3y ago
It may depend on the tax authorities view on those perks. In European countries with high tax rates it's common for fairly low level employees to get a company -paid car and other perks that reduce the taxable income: https://humancapital.aon.com/insights/articles/2016/car-allowances-remain-common-in-europe https://humancapital.aon.com/insights/articles/2016/car-allo... But it's not common practice in the US, which has a more car centric culture. Probably means there's no tax advantage there.