Jumbo Bonuses: Dial Your Envy Down a Notch
Wednesday, January 10th, 2007[This is a Letter to the Editor to the NY Times, which they chose not to publish.]
Editor:
I’m frankly astonished you published this fig leaf of apologia by Phyllis Korkki. For starters, the Times has published many articles over the years on how high income individuals have used and abused tax shelters and other schemes to avoid paying their allegedly high share of taxes, meaning the assertion that “The tax bite from a six-figure bonus is likely to be substantial” is hardly likely to be accurate.
Second, while the $137,000 amount may be accurate in the broadest terms I doubt its meaningful in the context of this discussion since the secretaries, couriers and shipping department staff are hardly likely to get six figure bonuses and ought to be excluded. The true relevant number should be the average bonus paid to partners, executives and other top of the line Wall Streeters and I expect it would be far greater than $137,000.
Finally, the entire short article reeks of condescension. Even if the people getting high six and seven figure bonuses pay out half in taxes then the bonuses are still many multiples of the average American take home earnings each year, with these bonuses coming on top of high salaries, benefits and perks.
If anyone criticizes the New York Times as a card-carrying member of the liberal media, you can correct them by pointing them to Ms. Korkki’s article.