CEOs’ Salaries Subsidized by Taxpayers
Wouldn’t it be nice if you could simultaneously 1) narrow the financial gap between CEOs and their lowest-paid employees, and 2) reduce your own tax burden. Well, now you CAN.
The Income Equity Act of 2007 would amend the Internal Revenue Code so that corporations will no longer get tax deductions when they pay “excessive compensation” to their top executives. If any employee is paid more than 25 times what the lowest-paid employee makes, the money beyond that 2500% mark would not be tax deductible.
So if a company’s lowest-paid worker makes $20,000 a year, and any other employee makes more than $500,000 a year, all of that person’s income beyond the $500,000 mark will NOT be tax deductible.
Fair enough? This bill is sure to bring out the usual conservative blubberings about “bootstraps” and “government meddling.” But there really isn't any government interference involved here. If corporations want to pay their CEOs nine hundred quatrabazillion dollars a year, they still can. They just won't be getting subsidized by YOUR tax dollars any more.
Conservatives should be in favor of a law like this, since they're always blathering about “welfare” and “government giveaways.” But it’s become all too obvious in the past few years: Conservatives have nothing against government handouts. They only object when the money goes to needy people.
And besides, companies could continue to pay huge salaries to their top executives and still keep their tax deductions. All they'd have to do is — let’s go waaay out on a limb here — raise the pay of their lowest-paid workers. Riiight, that'll happen.
If you'd like to start putting the brakes on our downward spiral into Third World status — where two percent of the population has most of the wealth — please click here. Ask your Representative to support the Income Equity Act (H.R. 3876).