Bill would limit contractor salaries

Two members of the Senate last week introduced bipartisan legislation that would limit contractor salaries paid by federal tax dollars to $400,000—the same as the president’s salary.

The bill, dubbed the Commonsense Contractor Compensation Act of 2012 (S. 2198), was introduced March 15 by Sens. Barbara Boxer (D-Calif.) and Chuck Grassley (R-Iowa).

Under the current federal executive compensation benchmark, tax-funded salaries earned by a government contractor’s top five executives are limited to $693,951—a cap the lawmakers say has almost doubled over the past 12 years. Moreover, according to a release from the two senators, “employees of government contractors outside of the top five can and do earn taxpayer-funded amounts in excess of the current benchmark.”

S. 2198 would extend the $400,000 cap would to cover all contractor employees. The contractor compensation has been a point of contention for some time.

“The direct taxpayer-funded salaries of government contractors clearly need to be contained, and this legislation is designed to do so,” Grassley said in a press statement. “There’s no justification for these payments to be higher than the salary of the president of the United States.”

While the bill would limit taxpayer-provided compensation, contractors would not be limited from paying employees additional amounts out of their own revenues, the lawmakers pointed out.

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Reader comments

Mon, Mar 26, 2012 Robert MD

Keep in mind this garbage comes from the same crooks who use their insider knowledge to make stock market purchases. Congress also reduces veterans medical benefits while they increase their own benefit. This is a bill I highly recommend making noise about. Government's role is clearly going big brother here. Write you congress person and express your point of view if you care about the impacts this has!

Tue, Mar 20, 2012 JimO

Typical of Congress, the new American Royalty. Doing to others what they should do to themselves FIRST! Think they will ever reduce their own pay or benefits? What a bunch of hypocrites.

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