STATE-CORPORATIONS MUST PAY HIGHER TAXES IF THE CEO’S SALARY IS MORE THAN 100 TIMES THAT OF THE MEDIAN WORKER’S SALARY

By Bob Katzen

The Revenue Committee held a virtual hearing that would require that an additional 2 percent tax be paid by publicly-traded corporations which pay the CEO more than 100 times the median worker’s salary.

“In 1955, chief executives earned about 11 times more than their employees,” said sponsor Sen. Jason Lewis (D-Winchester). “By 2019, according to the Economic Policy Institute, the ratio of CEO-to-typical-worker compensation reached an obscene level of 320-to-1. The dramatic rise in CEO pay along with the anemic growth in worker pay over the past several decades is a major contributor to the destabilizing income and wealth inequality that plagues our commonwealth and country. This bill would be a small step in addressing income inequality and advancing economic justice for working people.”

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