Deep inside President Obama’s fiscal 2014 budget released last week is language to set in motion another effort to clamp down on the amounts taxpayers reimburse contractors for the compensation of their top executives as well as their workforce writ large.
Currently, contracting firms are permitted to write off pay and benefits of up to $763,000 for each of their top five executives. Lawmakers such as Sen. Barbara Boxer, D-Calif., and Rep. Paul Tonko, D-N.Y., have joined with unions such as the American Federation of Government Employees to lower the reimbursement cap to help curb the federal deficit. They argue that executive pay and benefits have risen by 300 percent since the cap was introduced in the mid-1990s.
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