Ken Mitchell is incorrect
Reader comment on: Another Revolving Door Example
in response to reader comment: Only for Regulated Businesses
Submitted by Fast Eddie (United States), Feb 9, 2012 09:46
Reynolds original proposal was in a post on Instapundit on April 10, 2011. It proposed " a 50% surtax on anything earned within five years after leaving the federal government, above whatever the federal salary was." He went on to give as an example somebody making $150K at the White House leaving for a job at Goldman Sachs paying $1 Million.
This is far too broad. For example, all of the top security guys (e.g. Secret Service and FBI honchos in the Senior Executive Service pay grades and at the top of the regular GS pay grades) all make more than $150K. So if some of them do security work OR ANY OTHER WORK for Goldman, they're going to pay Reynold's tax. And, of course, Reynolds choice of $150K was just used as an example. The White House and the federal govt. in general pay far less than $150K to the vast majority of their employees.
Reynolds should have been very specific about the necessary relationship between what the person did as a federal employee and what private sector activities would be subject to his special tax. It is silly to make the test one which is limited to just the name of the private employer, irrespective of the job duties at that employer.
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