Where Does It Stop?

The Pitchforks and Torches Are Raised into the Air

In the past day, the Obama Administration released its preliminary findings regarding the compensation of CEOs of companies receiving Troubled Assest Relief Program (TARP). The executives will be, if the plan as proposed remains, will have 90% of their compensation snatched back by the federal government. The "Pay Czar" can arbitrarily set the pay of private businesses - some of which were forced to take TARP money.

Where does the Pay Czars reach end?

No one thought they would go below middle management, but the Fed admonished of the horrible misdeed in giving mail room, file room, and kitchen employees bonuses. The likely non-salaried, lowest on the proverbial totem pole, are being slammed for receiving up to a few thousand dollars.

Sure, Rush Limbaugh questioned will dealings with the government, such as Lockheed-Martin selling jet engines, constitute "taking tax payers money" and therefore, allow the bony fingers of Uncle Scrooge into Lockheed-Martin's day-to-day compensation? This is why Home Depot just a few years ago welcomed government shoppers but required they pay in cash. It was a way to keep the requirements and constraints from hamstringing the "Big Box" retailer.

Where does it government's reach cease?

In Minnesota Legislators could not successfully determine what and how welfare recipients spend our taxpayers money. They willingly - have to seek out - accept said subsidies from the government, but have very little responsibilities with our money.

Then there are corporate subsidies. Taxpayer monies such as Tax Increment Financing (TIF) are doled out for sports teams, retailers and corporations. Can governments at all levels, now determine how employees of Target or the Twins or Honeywell - from the top down - are compensated? Will the Pay Czar determine bonus amounts or even if they are paid out at all?

I Haven't Even Gotten to the Most Frightening Aspect

We do not know how far the government will go. We can only speculate at this time.

Allow me to speculate. Several weeks ago I posted the text of a bill attempting to "save" the printed press. The newpapers would become non-profits. The would also become tax-exempt in some cases. The would be free from tax liability. Would the government stop at determining compensation? As Obama did with his car company, would the Administration install "their" editor?

The class-envy slope can be the slipperiest!

Links

• Home Depot Refuses Sales to Federal Government - Wall St Journal; 06/18/2002 (subscription required)


• Home Depot Changes Tune on Government Business Atlanta Business Chronicle; 06/28/2002