Issue Position: Regulation and Executive Pay

Issue Position

The long push for deregulation in the last decade has proven itself to be a total failure. This is particularly apparent from the economic meltdown in 2008 but should have been foreseen by simply looking back at history before the great depression. However, as adamant as I am about the critical need of government regulation of large companies, especially those deemed too big to fail, I am a strong proponent of staying away from regulating small businesses. Small businesses are the lifeblood of the U.S. economy, the primary source of innovation, and the main hope to create new jobs and lead us out of our present economic problems.

As an attorney with a Master's Degree in Taxation and who regularly advises clients of tax consequences, I prefer reform of excessive executive pay, which I believe to be one of the main causes of the recent economic meltdown. This can be done through increased taxation of unconscionable bonuses which have been designed to encourage employees who only look at the short term to justify their excessive compensation. Bonuses should be paid based on long term performance, rewarding decisions that are good for the long term health of the company and, in turn, the long term health of the nation. One way this can be achieved is to tax executive pay in excess of $1 Million per year at a rate well above 50%. However, I would also bring back income averaging that once was contained in the Internal Revenue Code, so that someone who works years for the success of their project and realizes the gain or profit in a single year should be able to average such amount over a minimum of 5 years so that in such cases the much higher tax rate can be avoided.

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