Tuesday, April 6, 2010

This I Believe - a serious tax proposal

The other day it was reported that the average pay for the top 25 hedge fund managers in 2009 was $1 billion per manager. The top guy last year made over $4 billion. That is BILLION and it was their compensation for one year.

What kind of a country do we want to be?

Here is my proposal for the kind I believe we should be: The current tax rates should apply on the first $50 million of compensation and the rate should increase by 10% for every $10 million above that up to a top rate of 90%. In other words, above $100 million annual compensation should be taxed at 90%. (By the way, 90% tax on the top 25 hedge fund guys would have produced enough tax revenue to fund the entire U.S. Department of Education last year.)

How much money does one person need? Anyone who thinks this is a bad idea or that it will be a disincentive or that the system will unravel as a result of this change is wrong.

This I believe.

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