Correspondent of the Day

Don't Reward CEOs Receiving Bailouts
Editor, Times-Dispatch: I am writing regarding Scott Bleicher's Correspondent of the Day Letter on Oct. 28 ("Cutting Salaries Cuts Taxes, Too"). Surely, if Bleicher is an accountant -- as he proclaimed -- then he must realize that cutting executive compensation at firms receiving government assistance also would result in those firms having reduced salary and benefit expenses. This in turn would create higher levels of income resulting in higher income tax receipts for federal, state, and, in some cases, local governments.

One cannot even try to make an argument of different tax rates being applied, since most accountants realize that because of tax loopholes available to higher earning executives their effective tax rates are usually no higher than rates on incomes of the lowest earning taxpayers.

Of course, cutting the undeserved pay for such corrupt executives is the only correct thing to do, regardless of how it might impact income tax receipts. No fair-minded person would possibly support rewarding such bad behavior that was, and continues to be, exhibited by executives of AIG, other Wall Street players, and most major banks receiving government bailouts.

Terry L. Cook.
Midlothian.