Media Promoting Left-Wing, Class Warfare Rhetoric
It‚Äôs easy to be envious of those who make more money, but when you‚Äôre calling for government involvement based on that, you interfere with the American dream.
The August 30 ‚ÄúUSA Today,‚ÄĚ in an article by Adam Shell, referred to an effort by a left-wing organization to change the tax code, specifically ‚Äúto close the loophole allowing private investment managers to pay lower tax rates than ordinary Americans.‚ÄĚ
As BMI has previously reported, the use of the word ‚Äúloophole‚ÄĚ is one of the top errors journalists make when covering taxes. Using the term implies that the money rightly belongs to the government and that the person or organization taking advantage of a tax break is acting immorally or even illegally.
‚ÄúTo say the pay gap between Wall Street‚Äôs top titans and average Americans is widening would be an understatement,‚ÄĚ wrote Shell.
Shells‚Äôs story cited an August 29 study by the Institute for Policy Studies (IPS) and United for a Fair Economy (UFE) that criticized the compensation of private-equity and hedge-fund manager executives. The report also recommended government involvement to prevent the ‚Äúpay gap between CEOs and workers‚ÄĚ from widening.
‚Äú[W]hat we are talking about though in terms of proposals in Congress is allowing shareholders to vote every year on these pay packages and also fixing the loopholes that are in our tax policies that actually encourage excessive CEO pay,‚ÄĚ said Sarah Anderson, an IPS director, on CNBC‚Äôs August 29 ‚ÄúThe Call.‚ÄĚ
Shell‚Äôs USA Today story called private-equity firms and hedge funds the ‚Äúposter children of financial excess.‚ÄĚ ‚ÄúLawmakers, labor unions and corporate governance advocates have taken aim at private investment funds this summer,‚ÄĚ wrote Shell.
Most corporations‚Äô executive pay is set by their board of directors, but
However, more reasonable voices underscored that this type of compensation is what the marketplace dictates.
‚Äú[T]he question is what are you getting for [higher executive compensation] and that is what this report doesn‚Äôt show,‚ÄĚ said David John of the Heritage Foundation on CNBC‚Äôs August 29 ‚ÄúThe Call.‚ÄĚ ‚ÄúI‚Äôm willing to pay someone 10 million bucks if he‚Äôll earn me a hundred million bucks.‚ÄĚ