Germany rejects bid to tax companies for executive pay

But Social Democrats continue to push labour-friendly policies including increased pension funding and minimum wages
||Last Updated: 04/30/2008

German Chancellor Angela Merkel's conservative Christian Democrats turned down a proposal from their coalition partners to limit the amount a company can pay an executive without being taxed.

The Social Democrats' proposal would have limited the amount of executive salary that companies can deduct fully from their taxable profit to $1.6 million Cdn.

However, the Social Democrats have managed to push through several populist measures over the past year, signalling the party's shift to the left in preparation of next year's election.