Windfall Bonus Tax
Subject: Windfall Bonus Tax Date: 11/16/2009
In light of the resurgence of large corporate bonuses in the finical sector it may be better to apply a special tax on the bonuses rather than attempt to modify or eliminate them.
There is not much legal authority to regulate bonus amounts in the private sector but there is authority to tax the amounts at different rates.
In addition the "WINDFALL BONUS TAX" could be applied so as to encourage the recipients to spend the money rather than just hand it over to the government. If a fifty five percent tax was placed on bonuses which exceeded fifty thousand it would tend to curb such practices.
However people that were subject to the bonus tax could avoid paying the tax completely if they could prove they spent at least fifty five percent of the bonus money on Main Street, purchasing consumer goods etc....The money would have to be spent in a 6 month period.
This spend it or tax it philosophy could generate local stimulus money for the entire society. The good part is that the stimulus would come from people that actually can spend money without incurring more debit.
Thank You
James Martin
Poor man's view
In light of the resurgence of large corporate bonuses in the finical sector it may be better to apply a special tax on the bonuses rather than attempt to modify or eliminate them.
There is not much legal authority to regulate bonus amounts in the private sector but there is authority to tax the amounts at different rates.
In addition the "WINDFALL BONUS TAX" could be applied so as to encourage the recipients to spend the money rather than just hand it over to the government. If a fifty five percent tax was placed on bonuses which exceeded fifty thousand it would tend to curb such practices.
However people that were subject to the bonus tax could avoid paying the tax completely if they could prove they spent at least fifty five percent of the bonus money on Main Street, purchasing consumer goods etc....The money would have to be spent in a 6 month period.
This spend it or tax it philosophy could generate local stimulus money for the entire society. The good part is that the stimulus would come from people that actually can spend money without incurring more debit.
Thank You
James Martin
Poor man's view
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Created by WAMU 88.5 May 13, 2008 at 9:58am. Last updated by Jason Novak (WAMU 88.5) Sep. 22, 2008.
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Created by Jason Novak (WAMU 88.5) May 13, 2008 at 9:55am. Last updated by Jason Novak (WAMU 88.5) Aug. 28, 2008.
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