Great Idea fround in liberal Washington Post: Tax Cuts for Companies that Pay Cost of Living Adjustment

Every now and then I am rewarded for reading liberal talking points in the main stream media. This is one such idea.

Democratic House leaders have introduced proposals to limit tax deductions for corporations that give their chief executives performance bonuses but don’t similarly reward their workers. (They should go further and propose reducing tax rates on companies that give their employees wage hikes keyed to increases in productivity and the cost of living.) 

The first idea about limiting tax deductions unless companies have to reward workers if their CEOs get performance bonuses sounds like something that could be dodged. However, that second idea is pure gold. Tying corporate tax rates to providing a COLA sounds like something the Congressional Budget Office needs to score. If the savings is substantial I can see quite a few companies reducing their taxes through giving their employees a raise.

You can tie tax incentives to quite a few different perks for employees as well. Perhaps providing strait dollar for dollar matching or maybe a 1.5x match to an IRA the company gets a tax credit. A corporate tax code that is advantageous to the worker that ties it to corporate tax cuts that benefit the company would be some great out of the box thinking. It would be a middle class tax cut that will really help America.