Should the IRS tax CEO bonuses at a higher rate?

No

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by B Smith

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Should the IRS tax CEO bonuses at a higher rate?

As I enter early middle age, I amazed to see the high level of wealth envy that permeates our society. Too often I hear people say that they should pay more in taxes simply because they have more to pay. Many in our society want to be rich without putting forth the effort many have put forth in order to earn their position in life. This is envy. Envy is defined by www.dictionary.com; as: a feeling of discontent or covetousness with regard to another's advantages, success, possessions, etc. I do not know how this will end or when, but end it must.

Why should CEO's pay more in taxes? Because they make more money? This is so lame that it should not even be argued. But, we have too many out there pushing this idea that it needs to be addressed.

There are some people that risk more and should be rewarded accordingly. What about the doctor that spends 12 years in college or the athlete that abuses his body for 20 years? Should they be taxed at a higher rate? Why? Why are we so willing to reward those that choose to do little and punish those that choose to do more? Is this freedom? Is this the American dream?

I hear people talk about how the "workers" do all the work and the management sits in their offices all day doing virtually nothing. I would argue that they are working in their offices but that seems to fall on deaf (or ignorant) ears. The fact is that while the "workers" work, they are pretty much focused on the job before them. They usually clock out and go home after their shifts have ended. What about the white collar employees? Are their jobs over when they go home? No. They are usually salaried which means they do not clock in or out. The white collar employee may work until 8:00 with no increase in pay whereas a blue collar that stays over makes additional money.

My Dad is the owner and CEO of two pretty successful small corporations. I have watched this man work now for at least 35 years of my life. This man works his butt off. Even now that he is about 68 years old, he is usually the first man in and usually the last one out. He is out plowing his 50 acre parking lot at 4:00 in the morning when it snows and believe me it snows a lot in northern Indiana. He works weekends including Sundays.

He has two businesses. The second one is a 24 hour, 7 day a week business. I have seen him on the road at 3:00 am completing his job. I have also seen him give up a Christmas in order to help a stranded family that had their car break down. I could keep going but I want to get to my point. He once told me that if one of his employees fail then that ONE employee gets fired and it is shame on that employee. Then he added that if he fails, then 100 or so employees lose their jobs and it is shame on everyone. My dad works knowing that it is his efforts that directly affect 100 or so families. Now, who works harder? The man looking out for his job or my Dad looking out for 100 jobs?

Running a company is a lot harder than working for one. I could hire hundreds of people that could fry a hamburger or deep fry French fries for McDonald's. General Motors has employed millions of people to screw on nuts and the like over decades. Now, pretend that you have the responsibility of running the company. No, pretend that you are trying to run a McDonald's store. You have the responsibility of staffing the unit, ordering the food and supplies, maintaining the cash, getting the uniforms, maintaining the standards, staying within the laws, etc. Now try to tell me how the employee works harder than the manager? Because he sweats? Because his hands are calloused from the broomstick or the mop handle? What decisions does he have "Hmmm, I wonder if I should go check on the cleanliness of the bathroom now or in five minutes." What if he screws up a basket of French fries? They get tossed out. What if the manager screws up a supply order? They run out of hamburger buns in the middle of rush hour. I understand that these are simple examples but you can extend them to pretty much any business.

We should want to encourage the success of CEO's. We should want them making as much money for themselves as possible. Think about what happens when they make more money.

1. They have more money to invest into their businesses

2. They have more money to which to hire more people

3. They have more money to buy things so that other people make that money

4. They pay more in taxes via the first three above

The idea of taxing CEO's at a higher rate was started by people that are anti-freedom. This idea is bad and its results will be horrendous. These people are trying to use the police powers of government to force their wills on us. Do we want that? What do you think would happen if they get their way? Do you really think it will be for the better? Do you think the idea of allowing government to dictate the maximum amount people can earn is a good thing? Is this freedom? Is this what America was founded on? Is this the road to prosperity? If you do, if you really believe that, then I would plead with you to look at some other socialist countries and consider where you would rather live.

This will stop at some point. It simply must.

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