Under the current rules, the more a firm pays its CEO, the more the firm can deduct from its taxes.
To be clear, corporations can compensate their executives as much as they’d like. The idea is to prevent corporations from passing the buck to the American taxpayers.
My bill would eliminate a “backward” incentive for excessive compensation, which the bill defines as more than 25 times that of the lowest paid workers at the company.
Please take a look at a chart (below) by the Economic Policy Institute showing the total economy’s productivity over more than half a century vs the real hourly compensation of production/non-supervisory workers in the private sector.
To understand the impact of the incentives that our tax code creates,
see a report by the Institute for Policy Studies.
It documents 25 corporations that paid their CEOs more than the entire company paid in federal income taxes.
If you believe this out-of-control income inequality is bad for our economy, bad for the workers who fail to share in the benefit of their increasing productivity and bad for the social fabric that binds our nation together, please sign my petition now.
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