Sanders, Warren Want to Raise Taxes to Rein In Excessive CEO Pay

Companies that pay their chief executives at least 50 times more than the typical employee would face higher taxes under a new bill offered Wednesday by Senators Bernie Sanders and Elizabeth Warren.

Under the proposal, the tax rate would increase 0.5 percentage points for companies that pay their CEO between 50 and 100 times more than their typical worker. The highest penalty would be 5 percentage points for companies with leaders making more than 500 times what the typical employee. The bill could raise as much as $150 billion in tax revenue over 10 years, its backers say.

“At a time of massive income and wealth inequality, the American people are demanding that large, profitable corporations pay their fair share of taxes,” Sanders, a Vermont Independent who caucuses with Democrats, says in a statement. The measure doesn’t have any Republican backing as of now and is unlikely to move ahead in the evenly divided Senate.

Sanders, the chairman of the Senate Budget Committee, is holding a hearing Wednesday on income and wealth inequality. Inc. CEO Jeff Bezos declined an invitation to attend.

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