Average U.S. taxpayers subsidize executive compensation by more than $20 billion per year, thanks to various tax and accounting loopholes, according to a new report.

The report, by the Institute of Policy Studies, cited preferential capital gains treatment of carried interest as one leading subsidy, which it estimated at an annual cost of $2.661 billion to taxpayers. Unlimited deferred compensation amounts to $80.6 million in taxpayer subsidies, according to the group. Offshore deferred compensation costs taxpayers $2.06 billion, unlimited tax deductibility of executive pay amounts to $5.25 billion, while stock option accounting costs a whopping $10 billion.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access