Saturday, November 19, 2005

A small step toward sanity?

The Senate is proposing that executives pay a reasonable rate for their private use of corporate jets. (See this for a few egregious uses of the company plane.) Under this proposal, executives would pay significantly more in taxes for their personal use of a corporate asset. For example, under present rules an executive who travels 2,000 miles on the corporate jet to golf would have about $1500 added to his taxable income. If the proposed revision becomes law, that number would go to $30,000.

Let's see more of these kinds of laws that bring some common sense to the executive pay arena.

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