Those people have chosen to work for that company, and have agreed to work for a set wage, benefits, etc. The CEO is not responsible for their well-being. He is hurt when the company fails too. Sure, he for one will be fine if his company goes under, but he's being compensated more for a reason, and that reason is *not* because he will be forced to pay out of pocket the pension plans of every employee beneath him in the event of a disaster (and NOT in the event of a disaster, as you propose). Income disparities are a reality.
People can choose a company, but the fact remains the same that a person MUST* enter the corporate establishment . An agreement is made. They make it with regards to their expenditures, personal desires, life they would like to have, etc. The agreement established mandates the CEO to live up to his end if the worker lives up to his. If the CEO fails the company the worker will be out of wages. It can be completely the CEO's fault, yet the worker has to suffer? I absolutely do not agree, if the CEO does not live up to the agreement he has as responsibility (economic and moral) to those he now placed in a dire situation.
Five years working in a company, the CEO makes a killing and is able to save a ton. A normal worker
(by current american rates) has the worlds worst saving rate . The company fails after five years and the CEO goes to the Bahamas for vacation and all the regular workers are now squabbling just to survive. Is that fair?
And i repeat my point that corporations are not apt to make compensatory agreements for failures because the "for profit" nature of corporations does not place great interest in the livelihood of people. This is where the government has to step in
*freelancers have a slew of other concerns which replaces the constraints of corporations
This is a different issue altogether. I won't get into it except to say that we probably just disagree on the source of the money used for the bailouts.
Sorry, my point with that was to point to my great distaste in unions and what they do to this nation is due to the tax and government aide structures that either leaves people in the dark, or in an instance ruins someone's life. I want unions to be abolished, and the only way is for more security for the populace from the government.
What about the companies that DON'T fail? Why are those executives being taxed exorbitantly?
For the event that they do. Companies can, and will fail. Its a matter of time for which no one can really predict. You cannot simply look at financial trends.
Look what happened to BP this year. WHat if they failed to cap the well? What if the oceanic currents are now currents of oil? I doubt anyone would buy anything from BP.
For the workers sake, its better to be safe.
Now this raises the second concern which I didn't want to discuss at the moment but this example clearly shows. What if a CEO's incompentent management led to a environmental disaster. What if BP didn't have the assests to sell to fund the cleanup and the capping. The governemnt would have to step in using the tax payers money to pay for a CEO's mismanagement.
Is that fair to the average tax payer?
Now if there were some government mandated collection from them *only* in the event of bankruptcy (or whatever) as a "safety net" of sorts, I wouldn't have a problem with it.
Interesting thought. mmm, let me think about that
Again, I don't know why you consider the bolded to be a universal truth? Sure, in the examples you've used of corporate CEOs it *may* apply, but there are plenty of high earners who have very few--if any--people working under them. It doesn't make sense to make everyone responsible for anyone who might directly or indirectly be affected by their bad decision making. And to simply base the tax on the size of the income makes even less sense.
Well my examples have been extreme for effect. Of course the tax rate would be progressive. Someone who has a 5 people under him (my boss for example) would pay A LOT less than Steve Jobs for example.
And I never intended for it to be based solely on income, they are other factors. But income is generally a good indication of responsibility. Do you disagree?
Of course I agree that a healthy and capable populace is crucial. And I am of course happy to pay taxes to a government on which I can depend to use those taxes wisely. Even though that is not the case, I'm even happy to pay taxes to an inept government simply for providing me with the freedom and opportunity to live and work here. But it doesn't follow that I then support income-based taxation. I have yet to see evidence that a "progressive" tax is even correlated with a "healthy and capable populace".
Well clearly a fixed tax rate will provide a government with fewer funds thus allowing for less services.
What would your alternate be?
Statements like these kill me, dude. The other option we have is reform.
Aye, sorry man. You are right. Very stupid for me to say that. Reform is the route, but I guess I didn't jump to that because of.....
And since the route to that is a total clusterfuck of bureaucracy which seldom accomplishes anything, I would rather not throw any more money at the federal government than is absolutely necessary. Of course we have to pay taxes for things like public goods, state services, etc. But it's in the arena of social programs where the government's incompetence really shines through. It isn't that I disagree with them in principle, it's that I have no confidence that they can be effectively carried out or implemented. Make no mistake, much of our tax money simply goes to waste in the end, not that the lack of funds has ever put a damper on federal spending.
... ^ that. Inefficiencies and incompetence are a large source of waste. but I know we can come up with a better system that benefits the people as well as the corporate sector without dismantling governemnt. Europe is capable of doing this, I know America can.