Portland to vote on taxing companies if CEO earns 100 times more than staff
City official proposing the tax, considered the first of its kind, says income inequality is among society’s greatest challenges: ‘It’s absolutely frightening’
The city council of Portland in Oregon will vote on Wednesday whether to impose a tax on companies whose CEO’s pay exceeds the median salary of their workers by a ratio of more than 100-to-one.
The measure, which was proposed by Portland city commissioner and former environmental lawyer Steve Novick, will take advantage of the fact that new Securities and Exchange Commission (SEC) rules will require companies to disclose their executive pay ratios for the first time beginning in 2017.
If it passes, experts said the tax would be the first of its kind.
Novick said that he was inspired by a similar measure proposed by the California state senate in 2014, which failed to reach the supermajority needed to make changes to the state tax code. He was also inspired by reading French economist Thomas Piketty’s book Capital.
“To me, after global warming, income inequality is the biggest challenge we face in our society,” Novick said. “It’s been absolutely frightful to see the divide between regular folks and the richest-of-the-rich. It’s economically destabilizing, it’s politically destabilizing, it’s unhealthy.”
The measure could gain support from both sides of the political spectrum. As candidates, Donald Trump and Bernie Sanders – diametrically opposed on many issues – both pointed to the “rigged system” that supported the wealthiest one percent as a problem, Novick said.
The disparity between workers’ and CEOs’ pay has been rising sharply since the 1960s, when the average ratio was around 20-1. It now stands at above 200-1.
Novick’s proposal would increase current corporate income taxes by 10% if a company CEO had a salary ratio of above 100-1, and by 25% for CEOs with a ratio of 250-1 or higher.
https://www.theguardian.com/us-news...lary-tax-vote-wealth-inequality?CMP=edit_2221
City official proposing the tax, considered the first of its kind, says income inequality is among society’s greatest challenges: ‘It’s absolutely frightening’
The city council of Portland in Oregon will vote on Wednesday whether to impose a tax on companies whose CEO’s pay exceeds the median salary of their workers by a ratio of more than 100-to-one.
The measure, which was proposed by Portland city commissioner and former environmental lawyer Steve Novick, will take advantage of the fact that new Securities and Exchange Commission (SEC) rules will require companies to disclose their executive pay ratios for the first time beginning in 2017.
If it passes, experts said the tax would be the first of its kind.
Novick said that he was inspired by a similar measure proposed by the California state senate in 2014, which failed to reach the supermajority needed to make changes to the state tax code. He was also inspired by reading French economist Thomas Piketty’s book Capital.
“To me, after global warming, income inequality is the biggest challenge we face in our society,” Novick said. “It’s been absolutely frightful to see the divide between regular folks and the richest-of-the-rich. It’s economically destabilizing, it’s politically destabilizing, it’s unhealthy.”
The measure could gain support from both sides of the political spectrum. As candidates, Donald Trump and Bernie Sanders – diametrically opposed on many issues – both pointed to the “rigged system” that supported the wealthiest one percent as a problem, Novick said.
The disparity between workers’ and CEOs’ pay has been rising sharply since the 1960s, when the average ratio was around 20-1. It now stands at above 200-1.
Novick’s proposal would increase current corporate income taxes by 10% if a company CEO had a salary ratio of above 100-1, and by 25% for CEOs with a ratio of 250-1 or higher.
https://www.theguardian.com/us-news...lary-tax-vote-wealth-inequality?CMP=edit_2221
