Bill proposes higher taxes on CEOs with high wage disparity

This seems to be a common sense approach to incentivize closing the earnings gap between high level (so called C-Level) executives and the average worker in publicly traded companies.

State company tax rates would be progressively higher on those corporations with the largest.disparities

www.bizjournals.com...

California Democrats proposed a law Thursday that would raise state taxes on publicly traded companies that pay their top-earning employee 100 times as much or more as the company's average worker.

“The job creators are not CEOs,” he said. “The job creators are not the rich. The job creators are the middle, lower middle class and the poor with enough money to buy.”

Now many will say this is a 'job killer' as mentioned in the article. But remember that the C-level is responsible for maintaining 'stockholder value' . Moving a company is quite expensive. So companies will have to choose whether to degrade 'shareholder value' by expensive moves, or mitigate increased local taxes by paying their execs less. Which is easier.

Now I just heard about this a couple of days ago and I don't know whether 'salary' includes actual salary and all other compensation or not. The law will provide for penalties for corporations that:

There also would be steep tax penalties imposed on companies that tried to evade the new structure by replacing workers with contractors.

It will be interesting to follow this.....

reply to: FyreByrd

I doubt many companies will be maintaining a headquarters in California if this passes.

You can't legislate morality.

a reply to: FyreByrd

i support this.

itll never happen tho, reps got too much power.

I am just a grunt worker. What does a CEO do anyway to deserve that much more money than his employees?

One time, my husband left me for a week, he thought I would fall apart without him. I did just fine, I was a lot happier without him. If the big companies and their CEO's think we can't live without them, PLEASE leave and someone else will take your place.

Raise their taxes. The more they pay the less they have to buy congress with.