Inflation is getting bad!

Jarod

Jarod

Well-known member
Contributor
CEO pay at America’s largest public companies is up 1,460% since 1978.

Talk about inflation.
 
US Corporate Profits Soar With Margins at Widest Since 1950
(Bloomberg) -- A measure of US profit margins has reached its widest since 1950, suggesting that the prices charged by businesses are outpacing their increased costs for production and labor.



... A measure of US profit margins has reached its widest since 1950, suggesting that the prices charged by businesses are outpacing their increased costs for production and labor.


After-tax profits as a share of gross value added for non-financial corporations, a measure of aggregate profit margins, improved in the second quarter to 15.5% — the most since 1950 — from 14% in the first quarter, ...


...‘Tide Is Turning’

Biden allies have singled out the energy industry, which has posted blowout profits this year, for criticism over price-gouging. Democratic Senator Ron Wyden has floated a measure that would impose a windfall tax on profits in the industry deemed to be “excessive.” Similar measures have been adopted in several European countries to help finance measures that will protect consumers the energy-price shock.


Across the economy, adjusted pretax corporate profits increased 6.1% in the April-to-June period from the prior quarter — the fastest pace in a year — after falling 2.2% in the first three months of the year. Profits are up 8.1% from a year earlier. ...
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Revealed: top US corporations raising prices on Americans even as profits surge
A Guardian analysis uncovers how companies enriched themselves and their investors while boasting about jacking up prices


...As inflation shot to a new peak in March, cost increases exacted a deep toll on the economy, eating into most Americans’ wages and further imperiling the financially vulnerable. But for many of the US’s largest companies and their shareholders it has been a very different story.

One widely accepted narrative holds that companies and consumers are sharing in inflationary pain, but a Guardian analysis of top corporations’ financials and earnings calls reveals most are enjoying profit increases even as they pass on costs to customers, many of whom are struggling to afford gas, food, clothing, housing and other basics.

The analysis of Securities and Exchange Commission filings for 100 US corporations found net profits up by a median of 49%, and in one case by as much as 111,000%. Those increases came as companies saddled customers with higher prices and all but ten executed massive stock buyback programs or bumped dividends to enrich investors....
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InB4:

- why do you hate price gouging driven profits. Corporations need to profit with no limits on them.
- why would Biden try to control price gouging profits as prior gov'ts always used to do and gov'ts around the world do.
- INFLATION is Biden's fault. He is not doing enough
 
cawacko said:
If you think this is a problem what would you like to see done?
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Glad you asked.

I would like to see that the IRS is staffed so that it can bust the ones that are cheating on their taxes.

And I would like to see all of the loopholes that allow Corporations and IRC's to completely skirt paying their FUCKING TAXES be stripped out of the TAX CODE.

I have no problem with Trump's Tax Bill in terms of the formulas of who pays what. BUT NOT IF WE CANNOT END THE LOOPHOLES I mentioned.

All Trump's Tax Bill did was change the formulas, BUT HE DIDN'T END THE LOOPHOLES that fill the 75,000 pages of our current Federal tax code. 75,000 pages? Are you fucking kidding me? No, I am not!

NEXT!
 
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This topic usually gets more bites because it’s an easy topic to complain about.

My understanding is a couple of decades ago there was a push to limit executive salaries (?) and to align more with shareholder interests they reduced salary’s and gave more stock options. Thanks to the Fed and easy money we’ve had a booming stock market for several decades now and coinciding with that has been the increase in executive compensation.
 
cawacko said:
This topic usually gets more bites because it’s an easy topic to complain about.

My understanding is a couple of decades ago there was a push to limit executive salaries (?) and to align more with shareholder interests they reduced salary’s and gave more stock options. Thanks to the Fed and easy money we’ve had a booming stock market for several decades now and coinciding with that has been the increase in executive compensation.
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Which in turn frosts the asses of the socialist left.
 
Geeko Sportivo said:
Glad you asked.

I would like to see that the IRS is staffed so that it can bust the ones that are cheating on their taxes.

And I would like to see all of the loopholes that allow Corporations and IRC's to completely skirt paying their FUCKING TAXES be stripped out of the TAX CODE.

I have no problem with Trump's Tax Bill in terms of the formulas of who pays what. BUT NOT IF WE CANNOT END THE LOOPHOLES I mentioned.

All Trump's Tax Bill did was change the formulas, BUT HE DIDN'T END THE LOOPHOLES that fill the 75,000 pages of our current Federal tax code. 75,000 pages? Are you fucking kidding me? No, I am not!

NEXT!
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What loopholes? And who put them there, and why?
 
This isn't the season to discuss inflation.

Basketballs and footballs are inflated.

Baseballs are tightly wound with yarn internally.

Perhaps our foreign contributors made this mistake.



I have two large buckets of baseballs which I used to pitch batting practice to my son about forty years ago.
Then we had to retrieve all of the balls. Lots and lots of them.
Eventually it became easier to get rolls of quarters from the bank and go to the batting cage.
It was more expensive but easier on my then already aging back.

But I don't throw things away as often as perhaps I should.
I'm looking at those two big buckets of once white balls, now all yellowed, which serve as part of my mancave's décor.
I thought that I was over sentimental, but my son tells me that he still has two dozen "new" balls, still in wrappers,
that we never got around to using.
 
Jarod said:
I’d like to see a lot of that shared with the shareholders or lowering prices.
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That’s the whole argument, by aligning executive compensation with shareholder value their interests are aligned. When shareholder value increases so does executive compensation.

So you’re arguing for the current system.
 
Callinectes said:
What loopholes? And who put them there, and why?
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That is a good question!

Do you pay your fair share of taxes? I assume you do!

But since you pay your fair share of taxes, don't you think everyone else should be paying theirs?

Why do you pay your taxes, but yet some billionaire somewhere has a special tax break set up (just for him) in the TAX CODE by some Senator that wrote the tax break into law, by adding it onto a popular Bill at the last minute, before it can be read while being approved by Congress. A tax break requested by a lobbyist working for some Billionaire that heavily contributed to that Congressman's campaign, that tacked it onto the bill!

That is how the Tax code book of tax breaks has 75,000 pages now. Do not tell me you do not know this has been going on for almost a century now!

Next!
 
Geeko Sportivo said:
That is a good question!

Do you pay your fair share of taxes? I assume you do!

But since you pay your fair share of taxes, don't you think everyone else should be paying theirs?

Why do you pay your taxes, but yet some billionaire somewhere has a special tax break set up (just for him) in the TAX CODE by some Senator that wrote the tax break into law, by adding it onto a popular Bill at the last minute, before it can be read while being approved by Congress. A tax break requested by a lobbyist working for some Billionaire that heavily contributed to that Congressman's campaign, that tacked it onto the bill!

That is how the Tax code book of tax breaks has 75,000 pages now. Do not tell me you do not know this has been going on for almost a century now!

Next!
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The tax code is a very valid discussion topic but how are the points you are addressing related to CEO compensation?
 
cawacko said:
The tax code is a very valid discussion topic but how are the points you are addressing related to CEO compensation?
Click to expand...

Glad you asked!
https://americansfortaxfairness.org...booklet/fact-sheet-tax-subsidies-for-ceo-pay/

Fact Sheet: Tax Subsidies for CEO Pay
Key Facts

Closing the CEO pay loophole would save taxpayers $50 billion over 10 years.
Walmart dodged $104 million in federal taxes over the past six years by exploiting the CEO pay loophole.
Voters strongly oppose the CEO pay loophole. By nearly 2 to 1 (63% to 34%) they want to “prevent corporations from avoiding taxes when they award their executives millions of dollars in stock options (Hart Research, Q 12).
CEOs of major corporations earn nearly 300 times more than an average worker. This is 10 times more than the CEO-to-worker pay ratio in 1978 when CEOs earned 30 times more.
CEOs often get their “performance-based” bonuses even when they don’t reach performance goals.

Talking points

Under the CEO pay tax loophole, the bigger the bonuses corporations give to their executives the less the company pays in taxes. That means average taxpayers have to pick up the tab.
Corporate profits are soaring, CEO pay is skyrocketing, but workers’ wages are standing still. It’s outrageous that average Americans are subsidizing the lavish bonuses of their bosses.
Tax loopholes like this make voters feel that the system is rigged against them. And they are right. We need a tax system where everyone plays by the same set of rules.
When giant corporations don’t pay their fair share, small businesses and working families have to make up the difference. The $50 billion cost of this loophole could pay for a lot of things we need — educating our kids, rebuilding roads and bridges and finding new cures for diseases.
The CEO pay loophole encourages the reckless risk-taking that helped cause the 2008 financial crash. The more CEO bonuses are linked to stock prices and other short-term measures of “performance,” the more incentive CEOs have to take giant risks.

—————————-
Overview

Most American taxpayers would be shocked to learn that they subsidize CEO bonuses. A tax loophole allows corporations to deduct from their taxable income any amount paid to CEOs and their executives, as long as the pay is “performance-based.” This means that the more they pay their executives, the less they pay in federal taxes.
Why does this tax loophole exist?

The CEO pay loophole defies common sense, but Congress thought was doing the right thing when it passed legislation in 1993 that capped the tax deductibility of executive pay at $1 million. But there was a huge loophole — the cap doesn’t apply to “performance-based” pay, which includes stock options. Incentive bonuses were supposed to make CEOs better stewards of shareholders’ money. This theory has proved false, with the 2008 financial crisis being only the most severe example of how huge performance bonuses can encourage risky activities that endanger single companies and the broader economy.
How much does this loophole cost taxpayers?

Closing the CEO pay loophole would save taxpayers $50 billion over 10 years, according to the non-partisan Joint Committee on Taxation.
 
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Geeko Sportivo said:
Glad you asked!
https://americansfortaxfairness.org...booklet/fact-sheet-tax-subsidies-for-ceo-pay/

Fact Sheet: Tax Subsidies for CEO Pay
Key Facts

Closing the CEO pay loophole would save taxpayers $50 billion over 10 years.
Walmart dodged $104 million in federal taxes over the past six years by exploiting the CEO pay loophole.
Voters strongly oppose the CEO pay loophole. By nearly 2 to 1 (63% to 34%) they want to “prevent corporations from avoiding taxes when they award their executives millions of dollars in stock options (Hart Research, Q 12).
CEOs of major corporations earn nearly 300 times more than an average worker. This is 10 times more than the CEO-to-worker pay ratio in 1978 when CEOs earned 30 times more.
CEOs often get their “performance-based” bonuses even when they don’t reach performance goals.

Talking points

Under the CEO pay tax loophole, the bigger the bonuses corporations give to their executives the less the company pays in taxes. That means average taxpayers have to pick up the tab.
Corporate profits are soaring, CEO pay is skyrocketing, but workers’ wages are standing still. It’s outrageous that average Americans are subsidizing the lavish bonuses of their bosses.
Tax loopholes like this make voters feel that the system is rigged against them. And they are right. We need a tax system where everyone plays by the same set of rules.
When giant corporations don’t pay their fair share, small businesses and working families have to make up the difference. The $50 billion cost of this loophole could pay for a lot of things we need — educating our kids, rebuilding roads and bridges and finding new cures for diseases.
The CEO pay loophole encourages the reckless risk-taking that helped cause the 2008 financial crash. The more CEO bonuses are linked to stock prices and other short-term measures of “performance,” the more incentive CEOs have to take giant risks.

—————————-
Overview

Most American taxpayers would be shocked to learn that they subsidize CEO bonuses. A tax loophole allows corporations to deduct from their taxable income any amount paid to CEOs and their executives, as long as the pay is “performance-based.” This means that the more they pay their executives, the less they pay in federal taxes.
Why does this tax loophole exist?

The CEO pay loophole defies common sense, but Congress thought was doing the right thing when it passed legislation in 1993 that capped the tax deductibility of executive pay at $1 million. But there was a huge loophole — the cap doesn’t apply to “performance-based” pay, which includes stock options. Incentive bonuses were supposed to make CEOs better stewards of shareholders’ money. This theory has proved false, with the 2008 financial crisis being only the most severe example of how huge performance bonuses can encourage risky activities that endanger single companies and the broader economy.
How much does this loophole cost taxpayers?

Closing the CEO pay loophole would save taxpayers $50 billion over 10 years, according to the non-partisan Joint Committee on Taxation.
Click to expand...

On my phone so not able to copy and paste but this article refutes the claim above and explains why.

https://taxfoundation.org/blog/tax-code-does-not-subsidize-ceo-pay/
 
Jarod said:
CEO pay at America’s largest public companies is up 1,460% since 1978.

Talk about inflation.
Click to expand...

So? So long as the company is making a profit and paying its employees and bills on time, it's all good. If people don't want what that corporation sells at the price they sell it, then it will go out of business or change its prices.

The CEO of the Kroger grocery chain makes $19 million. Is that too much? The company made $31.8 billion in 2022. Should the company reduce its profit margin and cut his salary?
 
Geeko Sportivo said:
Glad you asked!
https://americansfortaxfairness.org...booklet/fact-sheet-tax-subsidies-for-ceo-pay/

Fact Sheet: Tax Subsidies for CEO Pay
Key Facts

Closing the CEO pay loophole would save taxpayers $50 billion over 10 years.
Walmart dodged $104 million in federal taxes over the past six years by exploiting the CEO pay loophole.
Voters strongly oppose the CEO pay loophole. By nearly 2 to 1 (63% to 34%) they want to “prevent corporations from avoiding taxes when they award their executives millions of dollars in stock options (Hart Research, Q 12).
CEOs of major corporations earn nearly 300 times more than an average worker. This is 10 times more than the CEO-to-worker pay ratio in 1978 when CEOs earned 30 times more.
CEOs often get their “performance-based” bonuses even when they don’t reach performance goals.

Talking points

Under the CEO pay tax loophole, the bigger the bonuses corporations give to their executives the less the company pays in taxes. That means average taxpayers have to pick up the tab.
Corporate profits are soaring, CEO pay is skyrocketing, but workers’ wages are standing still. It’s outrageous that average Americans are subsidizing the lavish bonuses of their bosses.
Tax loopholes like this make voters feel that the system is rigged against them. And they are right. We need a tax system where everyone plays by the same set of rules.
When giant corporations don’t pay their fair share, small businesses and working families have to make up the difference. The $50 billion cost of this loophole could pay for a lot of things we need — educating our kids, rebuilding roads and bridges and finding new cures for diseases.
The CEO pay loophole encourages the reckless risk-taking that helped cause the 2008 financial crash. The more CEO bonuses are linked to stock prices and other short-term measures of “performance,” the more incentive CEOs have to take giant risks.

—————————-
Overview

Most American taxpayers would be shocked to learn that they subsidize CEO bonuses. A tax loophole allows corporations to deduct from their taxable income any amount paid to CEOs and their executives, as long as the pay is “performance-based.” This means that the more they pay their executives, the less they pay in federal taxes.
Why does this tax loophole exist?

The CEO pay loophole defies common sense, but Congress thought was doing the right thing when it passed legislation in 1993 that capped the tax deductibility of executive pay at $1 million. But there was a huge loophole — the cap doesn’t apply to “performance-based” pay, which includes stock options. Incentive bonuses were supposed to make CEOs better stewards of shareholders’ money. This theory has proved false, with the 2008 financial crisis being only the most severe example of how huge performance bonuses can encourage risky activities that endanger single companies and the broader economy.
How much does this loophole cost taxpayers?

Closing the CEO pay loophole would save taxpayers $50 billion over 10 years, according to the non-partisan Joint Committee on Taxation.
Click to expand...

Should all the other workers, managers, and executives of a company be treated that way? They get pay and bonuses too...
 
T. A. Gardner said:
Should all the other workers, managers, and executives of a company be treated that way? They get pay and bonuses too...
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Yes, but they are not gifted company preferred stock annually! They have to pay for theirs and put it into 401K's to defer their paying taxes on them.

This I truly thought you would see my side of this, as a guy who paid his fair share of taxes all his life!
 
Geeko Sportivo said:
Yes, but they are not gifted company preferred stock annually! They have to pay for theirs and put it into 401K's to defer their paying taxes on them.

This I truly thought you would see my side of this, as a guy who paid his fair share of taxes all his life!
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Pay is pay whatever the form. Your argument is that only certain types of pay targeting "The Rich" should be gone after.

In 2022, Walmart netted $13.9 billion after paying salaries and bills, etc. The CEO of Walmart made $25.7 million. That's .02% of Walmart's net income last year. Was that unfair?
 
T. A. Gardner said:
Pay is pay whatever the form. Your argument is that only certain types of pay targeting "The Rich" should be gone after.

In 2022, Walmart netted $13.9 billion after paying salaries and bills, etc. The CEO of Walmart made $25.7 million. That's .02% of Walmart's net income last year. Was that unfair?
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I don't see anything wrong with his salary- QUESTION IS- How much in taxes did he pay?

Probably not a dime! :thinking:
 
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