Sunday, October 24, 2010
Companies Pump Up Pension Plans
Several, large, American corporations have started allocating chunks of annual revenue to enhance their employee's pension plans. A big incentive for this is the public action tool of tax expenditures. Apart from safe-guarding human capital from future adversity, these fiscal boosts are tax deductible. Thereby incentivizing companies to cut into their profit margins and redistribute the money elsewhere. This tool is particularly successful in partially lifting the United States out of the recession, because it efficient in allowing employees greater fiscal security, equitable, since it applies to all employees within the company, effective in promoting positive corporate culture, manageable for companies, as a portion of the revenue is simply extracted and redistributed, and a legitimate step towards the economic betterment of the nation.
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