Wednesday, January 07, 2015

Cap the salary of CEO of non-profits?

That's what Dean Baker is proposing. He is not talking about all non-profits, only those whose salaries are subsidized with our tax dollars. Donations that are eligible for tax deductions are, in fact, a form of subsidy. Baker uses the $7,000,000 salary of Jim Harbaugh as an example. If his salary is covered only by donations, then the tax benefit to the donors is $2,800,000; i.e. the government is giving the university a subsidy.

Baker is proposing a maximum salary of $400,000 to the CEOs of the subsidized entities. It's an intriguing point when one considers the money paid to some CEOs of non-profits now, such as the United Way.

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