Feb 9, 2007

ERIC Urges House Ways & Means Committee: "Drop Deferred Comp Language In Minimum Wage Bill"

In a letter to House Committee on Ways & Means Chair Charles Rangel (D-NY) and Ranking Member Jim McCrery (R-LA) ERIC urged the Committee to drop Senate language restricting deferred compensation affecting both middle and senior management in the Fair Minimum Wage Act of 2007 (H.R. 2).

ERIC's letter strongly opposes the Senate's inclusion of provisions that would (1) cap deferred compensation for any individual at the lesser of (i) $1 million or (ii) the individual's average annual compensation over the preceding 5 years; (2) expand the section 162 (m) limit on the deductibility of compensation to former employees; and (3) impose mark-to-market regime on certain retirement assets of if an individual terminates their U.S. residency or U.S. citizenship.

The House Ways & Means Committee has scheduled a mark-up of a small business tax bill for Monday, February 12 at which it reportedly does not currently intend to include the Senate-passed provisions to which ERIC objects. Nevertheless, that bill could be amended in committee to include some version of the Senate language.


Text Files:

McCrery Letter

Rangel Letter

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