Somehow, free money is never free. According to the Taiwan News, President Obama plans to annouce $ 500,000 salary caps on executives of financial institutions who took bailout money. According to the article:
"The pay cap would lay the ground for next week's unveiling of a new framework for spending the money that remains in the $700 billion financial rescue fund, established late last year by the former Bush administration to prevent the collapse of the country's financial underpinnings."
The important part of this idea is that the administration also intends to limit the executive pay of companies that were not bailed. This is not what America is about. Salaries of public held companies are overseen by stockholders--not by the government. This is an area that the government has no business meddling in. If legislation to enforce salary caps is passed, we will see a mass exodus of American companies relocating to other countries and a significant loss of jobs. This is not a wise move.
America has the highest corporate taxes in the world. Cut those taxes in half, leave the executive pay packages alone, and you will see America rebound. Look at what has happened to the economy of Ireland since they have cut corporate taxes. The Irish are now the most successful country economically in the European Union.
According to Ireland Now, in 1997 Ireland had the highest level of job creation in the industrialized world. During the period of rapid growth, inflation has remained relatively low: the consumer price index has grown, on average, at less than 2% per annum between 1993-1997.
This is what lowering the corporate taxes does for a country. I would work here also.
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