Senate Panel Limits Pay Deferrals for Executives

Measure Is Part of Broad Tax-Break Package to Help Small Businesses Offset Cost of Minimum Wage Rise

By Lori Montgomery and Jeffrey H. Birnbaum

Washington Post Staff Writers
Thursday, January 18, 2007; Page D01

The Senate Finance Committee approved legislation yesterday to limit one element of the big pay packages awarded to corporate executives, a move that business lobbyists saw as the harbinger of an assault on corporations and the wealthy now that Democrats control Congress.

On a voice vote, the committee agreed to change rules permitting some executives to amass millions of dollars in tax-deferred accounts. Limiting that perquisite would raise $806 million over 10 years, by congressional estimates. The money would be used to help cover tax breaks for small businesses hurt by a proposed increase in the minimum wage, a top Democratic priority.