03-18-2016, 02:47 AM
Remarkable logic not to tax 'job creators' once again in action on a proposal to link state tax rates to the ratio of CEO pay and workers:
The explosion of executive pay is one of the reasons the US economy has produced stagnant wages and has been growing less and investing less from the 1980s onwards
Quote:Under a bill introduced in the California legislature last year, a company whose CEO earns only 25 times the pay of its typical worker would pay a corporate tax rate of only 7 percent, rather than the 8.8 percent rate now applied to all California firms. On the other hand, a company whose CEO earns 200 times the pay of its typical employee, would face a 9.5 percent rate. If the CEO earned 400 times, the rate would be 13 percent.Robert Reich (The Outrageous Ascent of CEO Pay)
The bill hasn’t made it through the legislature because business groups call it a “job killer.” The reality is the opposite. CEOs don’t create jobs. Their customers create jobs by buying more of what their companies have to sell. So pushing companies to put less money into the hands of their CEOs and more into the hands of their average employees will create more jobs.
The explosion of executive pay is one of the reasons the US economy has produced stagnant wages and has been growing less and investing less from the 1980s onwards