Again that is a generalization, as I am the CEO and I certainly don't get that kind of compensation! We could move up an income bracket if we terminated our employee's position, but that would mean working 50% more hours.
Michigan has a new tax called the Michigan Business Tax, which I covered in depth in the other thread. It taxes businesses a percentage of gross sales AND a much bigger chunk of profit. Realistically, this combined tax is approximately 10% of our net profit. Plus we have to pay a state unemployment tax, federal unemployment tax, social security and medicare taxes on our employee wages. And since the the Michigan Unemployment Trust fund is running in the red, they added another tax supplement to help bolster the budget. What's the best way to reduce those taxes? Cut employee compensation and cut the number of employees. Sounds like a great way to promote business in Michigan, right?
Then, once we receive our net profit, we are taxed on it again, both state and federal income taxes.
Then once we spend what is left, we pay 6% sales tax.
What's left? Not much.
It is in general and I doubt you make that. That was an average figure on CEOs and I'm thinking that's more from the big corporations. The ratio cap idea is just an idea. I think we can both agree that something needs to be done on outrageous compensation.
I can understand no state tax on businesses. I was thinking of personal income taxes. The Michigan business tax sounds outrageous. I'm not sure what ND's tax rate is on business. I know personal income tax is 2-6% which is lower than other states. I will agree a business gets taxed from many different ends and I can believe it doesn't leave much left.
"An ignorant man thinks he knows everything, a wise man knows he doesn't."
