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Most corporations and many governments have figured this out. Kentucky’s politicians remain largely oblivious.
This, from WSJ.com, may help:
“Normally, companies can deduct the cost of deferred comp only when they actually pay it, often many years after the obligation is incurred. But Intel’s contribution to the pension plan was deductible immediately. Its tax saving: $65 million in the first year. In other words, taxpayers helped finance Intel’s executive compensation.”
Taxpayer-financed executive pay will be red meat for the anti-corporate types. If it wakes them up to Kentucky legislators’ pension scam, perhaps we will be on the way to really repairing our own unsustainable public employee benefits system.