With the arena’s richest individual, Tesla CEO and Republican megadonor Elon Musk, at the cusp of becoming the first trillionaire on the planet, two leading progressive lawmakers are calling on Congress to pass a bill to “rein in the obscene salaries of America’s top executives.”
Sen. Bernie Sanders (I-Vt.) and Rep. Rashida Tlaib (D-Mich.) on Monday introduced the Tax Over the top CEO Pay Operate with the struggle of elevating taxes on corporations that pay their executives greater than 50 instances their employees’ wages.
The law would impose consequences founding at 0.5 proportion issues for firms with CEO-to-worker pay ratios between 50-to-1 and 100-to-1. Corporations the place executives produce greater than 500 instances their employees’ pay could be compelled to pay the absolute best price.
The invoice would additionally require the U.S. Treasury Branch to split unwell on tax avoidance, together with schemes that conceal pay disparities via outsourcing jobs to contractors.
Sanders stated that exorbitant CEO pay and immense pay gaps at firms are insupportable “while 60% of Americans live paycheck to paycheck and millions work longer hours for lower wages.”
“It is unacceptable that the CEOs of the largest low-wage corporations make more than 630 times what their average workers make,” stated the senator, who has been criss-crossing the rustic this day along with his Fighting Oligarchy Tour, galvanizing family in pink and blue districts in opposition to wealth inequality, political corruption, and company energy.
“This is not only morally obscene, but also insane economic policy,” stated Sanders. “At a time of record-breaking income and wealth inequality, we must demand that the wealthiest people and most profitable corporations in America finally pay their fair share of taxes and treat all employees with the respect and dignity they deserve. That’s precisely what this legislation begins to do.”
The proposal would carry an estimated $150 billion over a decade if tech giants, Wall Side road companies, and alternative massive firms proceed their tide repayment patterns, and Sanders and Tlaib famous that the most important corporations in america would have paid billions of bucks extra in taxes endmost day had the law been in impact.
JPMorgan Chase would have paid $2.38 billion in taxes, life Google would have paid $2.16 billion and Walmart would have paid $929 million.
With 62% of Republican electorate and 75% of Democrats supporting a cap on CEO pay relative to employee salaries, the law would most probably be smartly won via American citizens around the political spectrum — however Republican lawmakers have proven minute to little interest in confronting the pay hole, making sure truthful wages for staff, or reining in over the top govt repayment.
With the tide CEO-employee pay hole, CEOs on the 350 greatest publicly owned companies produce 290 instances greater than the typical pay of an ordinary employee at their corporations, with the distance a lot better at some firms.
The median Walmart employee made $29,469 in 2024, life CEO Doug McMillon took house $27.4 million — a 930-to-1 hole.
The median Starbucks employee must paintings for greater than 6,000 years to earn the pay CEO Brian Niccol took house in 2024.
“Working people are sick and tired of corporate greed,” stated Tlaib. “It’s disgraceful that corporations continue to rake in record profits by exploiting the labor of their workers. Every worker deserves a living wage and human dignity on the job.”
“It’s time,” she added, “to make the rich pay their fair share.”
Tlaib and Sanders offered the law as Pope Leo spoke out in opposition to exorbitant CEO pay in his first interview since taking the helm of the Catholic Church, booking specific condemnation for Musk, for whom the Tesla board proposed a $1 trillion pay package deal if he grows the corporate via eightfold over the then decade.
“CEOs that 60 years ago might have been making four to six times more than what the workers are receiving… it’s 1758063356 600 times more than the average workers are receiving,” the pope informed the Catholic outlet Crux.
“Yesterday, the news that Elon Musk is going to be the first trillionaire in the world: What does that mean and what’s that about?” he added. “If that is the only thing that has value anymore, then we’re in big trouble.”
Sanders said Monday that the pope “is exactly right.”
“No society can survive when one man becomes a trillionaire while the vast majority struggle to just survive — trying to put food on the table, pay rent, and afford healthcare,” stated Sanders. “We can and must do better.”
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