American People Are Being Misled as to the Consequences of Company Bonusesby Representative K. Michael Conaway
Posted on 2015-01-07
CONAWAY asked and was given permission to address the House for
1 minute and to revise and extend his remarks.)
Mr. CONAWAY. Mr. Speaker, yesterday, from these microphones, there
was more than one occasion when my colleagues would argue that somehow
giving a bonus of $1 million to the business owner or a chief executive
officer of a company would somehow go untaxed; that because the company
got a tax deduction that that somehow spread the burden of that across
all of America.
What was left out of the conversation each and every time was the fact that the recipient of that bonus--this individual--actually puts that on their tax return and pays it at a much higher rate. In fact, that $1 million would probably be taxed at the 43 percent rate--or 39.6, plus the add-ons that are in place.
So, over and over again yesterday the American people were misled as to the consequences of getting bonuses or paying chief executive officers. It does not go untaxed simply because the company gets a tax deduction. That employee has to put that on their tax return and pay the appropriate taxes on that.
I just wanted to set the record straight on yesterday's misguided comments with respect to how individuals who create businesses and grow those businesses are compensated, and the misinformation that that somehow is a negative impact on the rest of us.