In Applying the $1 Million Limit on Deducting Executive Compensation

question 144

Essay

In applying the $1 million limit on deducting executive compensation, what corporations are subject to the deduction limit? What executives are covered?

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Definitions:

Textile Products

Goods produced by weaving, knitting, or felting fibers, including clothing, towels, and bedding.

North American Free Trade Agreement

A trilateral trade block agreement made by Canada, Mexico, and the United States to reduce trading costs and increase business investments.

Infant Industries

Industries in their early stage of development, which may be protected by the government from international competition to allow them to grow.