Unfair Tax

UNFAIR TAXES

Aside from the healthcare issue, President Trump has repealed the executive order that capped corporate expenses associated with executive parachutes that could be used to off-set corporate income taxes. Under Obama Executive Orders, only the first $500,000 of an executive parachute could be applied to the expense line and thereby reducing corporate income tax. President Trump’s repeal of that rule now allows ALL of an executive parachute to be shown as an expense to the corporation and thereby reduce its tax liability. So, for example, Carrier Tolstedt, the Wells Fargo manager that supervised that whole Well Fargo fraud debacle, got a $125,000,000 parachute. Under Obama executive order only $500,000 of that could be charged off as an expense; under Trump’s executive order the entire $125 million can be charges off as an expense. The average corporate income tax rate is 35% therefore, the tax difference is $175,000 reduction in corporate income tax verses $4,375,000 – nice payday for a corporation.