Thursday, August 18, 2011

Buffett and Higher Taxes -- A Hypothetical Case Study

Let's say that Warren Buffett owned a company that was deeply in debt, hemorhaging cash, losing market share and supporting large numbers of idle employees.

What would the Oracle of Omaha do to turn things around? It's simple -- cut the commissions of the top 3% of salemen who bring in half the revenues and use the savings to give raises to the idle employees. This will encourage the top salesmen to go out and win new business while the idle employees stimulate the company's finances by spending money in the company cafeteria.

Yeah, right.

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