Sanders unveils plan to tax companies with high-earning CEOs
Bernie Sanders has a new plan to reduce the widening gap between the rich and poor.
The presidential candidate and decadeslong crusader against income inequality unveiled a proposal Monday to raise taxes on businesses whose CEOs make at least 50 times more than their median workers.
The boost in corporate taxes would be imposed on companies that bring in $100 million or more in annual revenue.
“The American people are sick and tired of corporate CEOs who now make 300 times more than their average employees, while they give themselves huge bonuses and cut back on the health care and pension benefits of their employees,” Sanders said in a statement. “It is time to send a message to corporate America: If you do not end your greed and corruption, we will end it for you.”
According to government data released this month, income inequality in the U.S. is at its highest point in at least 50 years.
Sanders also introduced a wealth tax plan last week in hopes of lessening the nation’s divide in fortunes. His presidential primary opponent Sen. Elizabeth Warren proposed a wealth tax early this year. Both candidates have expressed support for wealth taxes before this year.
Sanders’ plan would increase taxes on businesses progressively: If the CEO or highest-paid employee of a company makes more than 50 times but not more than 100 times the median worker, its corporate taxes would go up by 0.5 percentage points; for those whose top employee earns between 101 times and 200 times more than a typical worker, taxes would increase by 1 percentage point; and so on, ending with an increase of 5 percentage points in corporate taxes for firms with CEOs who reap more than 500 times the median employee.
Like proposed wealth taxes, Sanders’ tax plan may face constitutional challenges.
If Sanders’ proposal had been on the books last year, his aides said, Walmart would have been on the hook for up to $790 million in extra taxes, while McDonald’s would have owed $110 million more. JPMorganChase would have had to pay an additional $990 million in taxes, they said.