November, 12 2019, 11:00pm EDT
For Immediate Release
Contact:
Sanders contact: Keane_Bhatt@sanders.senate.gov
Lee contact: Nissa.Koerner@mail.house.gov
Tlaib contact: Denzel.McCampbell@mail.house.gov
Sanders, Lee, and Tlaib Partner to Combat Outrageous CEO Pay
Sen. Bernie Sanders (I-Vt.), Rep. Barbara Lee (D-Calif.) and Rep. Rashida Tlaib (D-Mich.) introduced the Tax Excessive CEO Pay Act, which rewrites the federal tax code to tackle the inequality crisis created by corporate America's unrestrained greed.
WASHINGTON
Sen. Bernie Sanders (I-Vt.), Rep. Barbara Lee (D-Calif.) and Rep. Rashida Tlaib (D-Mich.) introduced the Tax Excessive CEO Pay Act, which rewrites the federal tax code to tackle the inequality crisis created by corporate America's unrestrained greed.
The typical restaurant employee at McDonald's would have to work for more than 2,000 years to earn what the company's CEO Chris Kempczinski received last year. A retail worker at Gap Inc. would have to work for more than 3,000 years to receive the annual compensation of Gap's former CEO Art Peck. Peck's pay was increased by 33 percent in 2018, even after he presided over years of declines in sales and stock prices.
The Tax Excessive CEO Pay Act would pressure corporations to curb these outrageous pay gaps that are the norm today, by imposing graduated taxes for companies that pay their CEO more than 50 times the pay of the median worker. The tax penalties would begin at 0.5 percentage points and rise to 5 percentage points for firms compensating their chief executives at more than 500 times the rate of their workers. A recent report by the Institute for Policy Studies found that 80 percent of S&P 500 firms paid their CEOs more than 100 times the pay of their median worker.
Many of the firms lavishing multi-million-dollar compensation packages on their top executives rely on taxpayer support--through public housing, nutrition assistance, and Medicaid, for example--to assist full-time workers who struggle with poverty wages.
"In America today, ordinary workers at some of the richest corporations are making poverty wages. Meanwhile, we've got a class of corporate CEOs who make hundreds--sometimes thousands--of times more than their employees," said Sanders. "The last time I checked, corporations got by just fine when CEOs made a million bucks a year--one-tenth of what they make now. All around the world today, large, successful businesses manage to be profitable while treating their workers with dignity and not handing out obscene pay packages to their CEOs. If America's corporate boards can't understand the absurdity of paying their CEO friends--in one year--more than their workers will earn in a lifetime, then the Tax Excessive CEO Pay Act will help them figure it out."
"In the last four decades, inequality has ballooned in our nation and more and more wealth is going to those at the top while workers' wages, especially for workers of color, have remained stagnant," said Congresswoman Barbara Lee. "It is unjust and unacceptable that the CEOs of major corporations are making an average of 287 times more than their average worker - with some CEOs making upwards of 1000 times more. The Tax Excessive CEO Pay Act will incentivize companies to reduce the CEO-worker pay gaps and pay their workers the wages they deserve. Because if companies can afford to pay their CEOs tens of millions of dollars, they can afford to raise wages for their employees."
"Corporate greed is a disease that has long inflicted this country--income inequality and the pay gap between CEOs and their employees are just two of its symptoms that are harming everyday people," said Congresswoman Rashida Tlaib. "In 2018, for example, General Motors' CEO made nearly 300 times more than the median income of an employee there. We have had enough. The Tax Excessive CEO Pay Act will help ensure there is more fairness in the workplace when it comes to wages. It's common sense legislation on the path toward justice for all."
In the 1970s, the average middle-class American worker could raise a family and save for retirement with their pay. CEOs of successful U.S. corporations in the 1970s received about $1 million annually--roughly 20 to 30 times the average pay of their company's middle-class workers. At present, a CEO at a Fortune 500 firm receives about $20 million per year--200 to 300 times the average pay of a typical worker, according to research by the AFL-CIO.
Americans across the political spectrum are outraged by the extreme gaps between CEO and worker pay. According to a nationwide survey, the typical American would limit CEO pay to no more than 6 times that of the average worker. About 62% of all Americans--52% of Republicans and 66% of Democrats--favor capping CEO pay relative to worker pay.
The Tax Excessive CEO Pay Act would raise roughly $150 billion over 10 years if current compensation trends continue. The bill also requires the Treasury Department to issue regulations to prevent tax avoidance, including against companies that increase the use of contractors rather than employees. Pay-ratio data for privately held corporations would also be made public, just as publicly held corporations are required to make public under current law.
The Tax Excessive CEO Pay Act is endorsed by the AFL-CIO, Americans for Democratic Action, Campaign for America's Future, Center for Popular Democracy, Communications Workers of America, Coalition on Human Needs, EPI Policy Center, Franciscan Action Network, Institute for Policy Studies/Global Economy Project, International Brotherhood of Teamsters, International Federation of Professional & Technical Engineers, Jobs With Justice, National Council of Churches, National Federation of Federal Employees, National Health Care for the Homeless Council, NETWORK, Other98, Our Revolution, People's Action, People Demanding Action, Public Citizen, Restaurant Opportunities Centers United, Service Employees International Union (SEIU), Social Security Works, Strong Economy for All, Take on Wall Street, and the Working Families Party.
The bill was cosponsored by Representatives Schakowsky (D-Ill.), Grijalva (D-Ariz.), Norton (D-D.C.), Huffman (D-Calif.), Jayapal (D-Wash.), Khanna (D-Calif.), Thompson (D-Miss.), DeLauro (D-Conn.), Haaland (D-N.M.), Espaillat (D-N.Y.), Pressley (D-Mass.), Garcia (D-Ill.), Omar (D-Minn.), Takano (D-Calif.), Watson Coleman (D-N.J.) and McGovern (D-Mass.).
Read the bill summary here.
Read the legislative text here.
Read an FAQ here.
Read a support letter by 28 major economic justice organizations here.
Watch the bill's release video here.
LATEST NEWS
Sanders: 'The Netanyahu Gov't Should Not Receive Another Penny from US'
The bill passed the Senate in a 74-24 vote at 2:03AM
Mar 23, 2024
Following the passing of the U.S. government appropriations bill early Saturday morning, Senator Bernie Sanders said:
I voted NO on the appropriations bill that the Senate passed last night. While hundreds of thousands of Palestinian children face starvation in Gaza, this bill actually prohibits funding to UNWRA, the key United Nations aid agency delivering life-saving humanitarian support. This will only intensify the already horrific situation in Gaza. This bill also provides another $3.3 billion in U.S. military aid for Netanyahu’s right-wing government to continue this barbaric war. The Netanyahu government should not receive another penny from U.S. taxpayers.
The bill passed the Senate in a 74-24 vote at 2:03AM Saturday morning following hours of intense negotiations.
Later on Saturday, President Biden signed the $1.2 trillion government funding bill to stave off a government shutdown.
Keep ReadingShow Less
Modi Government Crackdown on Dissent Hits 'Crisis Point' Before Indian Elections
"The growing crackdown clearly shows the authorities' blatant disregard for human rights and rule of law," said one Amnesty International campaigner.
Mar 22, 2024
As India's right-wing government cracks down on opposition ahead of next month's general elections, Amnesty International on Friday urged authorities to "stop weaponizing the criminal justice system to intimidate and harass" political candidates, activists, and others.
Protests broke out in the capital New Delhi and other Indian cities after police on Thursday arrested Delhi Chief Minister Arvind Kejriwal, an opposition leader from the Aam Aadmi Party, over corruption allegations AAP members say are politically motivated. Two other AAP leaders were previously arrested in connection with the same case, which involves the alleged favoring of certain alcohol vendors and illegal campaign financing.
Authorities also froze the bank accounts of another leading opposition party, the Indian National Congress, over a tax dispute that dates back to 2018. Party leader Sonia Gandhi accused Indian Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) party of perpetrating "a systematic effort to cripple the party financially."
“They want to know we are corrupt like them, which is not the case.” – AAP chief spokesperson Priyanka Kakkar on the BJP’s crackdown on opposition politicians.
AAP leader Arvind Kejriwal was arrested just today on charges of corruption.
The India Report: https://t.co/rxPr6zKnWx pic.twitter.com/P3eSbxVTVm
— Al Jazeera English (@AJEnglish) March 21, 2024
Gandhi, Kejriwal and others have repeatedly accused of Modi's government of misusing federal agencies and resources to repress opposition figures as elections loom. The BJP denies the allegations.
"The Bharatiya Janata Party-led Indian government's crackdown on peaceful dissent and opposition has now reached a crisis point," Amnesty International India board chair Aakar Patel said in a statement.
"The authorities have repeatedly exploited and weaponized various financial and terrorism laws to systematically crack down on human rights defenders, activists, critics, nonprofit organizations, journalists, students, academics, and political opposition," Patel added. "The arrest of Arvind Kejriwal and the freezing of Indian National Congress' bank accounts a few weeks before India holds its general elections show the authorities' blatant failure to uphold the country's international human rights obligations."
Patel continued:
What we are witnessing is a brutal crackdown on human rights including through the misuse of central investigative and financial agencies, attacks on peaceful protests, arbitrary arrests, use and export of invasive spyware for unlawful surveillance, [and] systematic discrimination against religious minorities to feed into their majoritarian Hindutva politics and targeted suspension of opposition leaders from the Parliament who dare to hold the authorities to account.
"The growing crackdown clearly shows the authorities' blatant disregard for human rights and rule of law," Patel added. "Authorities must respect, protect, promote, and fulfill the human rights of everyone in the country including human rights defenders, activists, and opposition candidates before, during, and after the general elections which are due to begin in April 2024. Authorities must also ensure access to justice and effective remedies for victims of human rights violations."
On Thursday, the U.S. House of Representatives' bipartisan Tom Lantos Human Rights Commission held a hearing on the situation in India.
The commission noted that in recent years, as Modi and the BJP have consolidated power, "concerns about human rights abuses in India have grown" over "a wide range of significant rights issues, including restrictions on religious and press freedoms, violence or threats of violence targeting members of national/racial/ethnic and religious minorities, harassment of and restrictions on civil society and human rights organizations, corruption, and lack of accountability."
Keep ReadingShow Less
House GOP 'Imploding' as Gallagher Resigns and Greene Moves to Oust Speaker
"House Republicans had a bad day," said one reporter, listing challenges and changes to leadership as a government shutdown looms.
Mar 22, 2024
The U.S. House of Representatives started a two-week recess on Friday, but not before a series of events that provoked fresh declarations of what has become a familiar phrase over the past few years: "Republicans in disarray."
Before leaving Capitol Hill, House members passed a spending package intended to prevent a partial government shutdown that could still occur unless the Senate acts. Fewer than two dozen Democrats and over 100 Republicans opposed the bill. Democratic opposition was largely related to Israel's war on the Gaza Strip.
Meanwhile, far-right Republicans like Texas Congressman Chip Roy have made comments like, "Everyone that I know and trust about the border, about overall spending, see it as a complete and total failure and a capitulation by Republicans. And leadership worked the deal, so it's on leadership."
Congresswoman Marjorie Taylor Greene (R-Ga.) not only opposed the package but also filed a motion to vacate, hoping to remove House Speaker Mike Johnson (R-La.)—which would only require a simple majority if it came up for a vote.
The \u201cRepublican-controlled\u201d House just passed a $1.2 trillion spending bill that doesn\u2019t secure our border, but funds full term abortion and trans ideology on our youth.\n\nI filed a Motion to Vacate because the House needs a Speaker who\u2019s able to win for Republicans and our\u2026— (@)
House Republicans elected Johnson to the leadership role in late October, after ousting former Speaker Kevin McCarthy (R-Calif.)—who then opted to leave office at the end of last year—and rejecting three other candidates for the post: Reps. Tom Emmer (D-Minn.), Steve Scalise (R-La.), and Jim Jordan (R-Ohio).
Noting that Greene filed a regular motion rather than a privileged one, meaning it could be referred to a committee, "where it would likely languish," NBC Newsreported Friday:
Greene told reporters that her motion to vacate was "more of a warning than a pink slip," saying she does not want to "throw the House into chaos," like the three and a half weeks that the chamber was without a speaker when McCarthy, her close ally, was ousted.
"I'm not saying that it won't happen in two weeks or it won't happen in a month or who knows when. But I am saying the clock has started. It's time for our conference to choose a new speaker," she said.
Johnson's October election led Rep. Matt Gaetz (R-Fla.)—who filed the motion to vacate targeting McCarthy—to declare that "MAGA is ascendant," a reference to the "Make America Great Again" campaign slogan of former President Donald Trump, the presumptive GOP nominee for the November election.
While Gaetz voted against the spending package on Friday, he also said that "if we vacated this speaker we'd end up with a Democrat. You know, when I vacated the last one, I made a promise to the country that we would not end up with a Democrat speaker and I was right. I couldn't make that promise again today."
Asked if he thinks Johnson's job is safe, Gaetz responded, "It is."
House Minority Leader Hakeem Jeffries (D-N.Y.) also responded dismissively when questioned about Greene's motion on Friday, tellingPunchbowl News, "She's a joke."
A spokesperson for Johnson, Raj Shah, toldPolitico that the speaker "always listens to the concerns of members, but is focused on governing. He will continue to push conservative legislation that secures our border, strengthens our national defense, and demonstrates how we'll grow our majority."
However, Johnson's limited control over the House is dwindling. Congressman Mike Gallagher (R-Wis.), who backed the spending bill, revealed that he is resigning from his seat effective April 19 after previously saying that he would not seek reelection. Friday was also the last day of Rep. Ken Buck (R-Colo.), who announced earlier this month that he would step down from his seat.
The Washington Post noted Friday that "Buck and Gallagher are the sixth and seventh members of the House who are quitting midterm simply to leave for the private sector, a trend we dubbed 'the Great Resignation' last weekend. It's also the highest number of lawmakers quitting public service altogether in at least 40 years."
Responding to Gallager's announcement on social media, HuffPost's Jennifer Bendery said that "House Republicans are imploding in plain sight."
In yet another disruption to the chamber's GOP leadership, Rep. Kay Granger (R-Texas)—who announced last year that she wouldn't seek reelection—wrote in a Friday letter to Johnson that she plans to step down as chair of the House Appropriations Committee.
Granger told the speaker she would stay in the post until the Republican Steering Committee chooses her replacement and then remain on the panel through the end of her term to offer "advice and counsel for my colleagues when it is needed."
The Texas Tribunepointed out that "the Appropriations Committee will need to pass another set of federal funding bills before the end of September to keep the government funded. Congress has failed to meet that deadline for nearly 30 years, and Granger acknowledged in her letter that election years in particular often distract Congress from passing spending bills on time."
GOP members of the upper chamber were also accused of sowing chaos on Friday, as the midnight shutdown deadline loomed.
Senate Budget Committee Chair Sheldon Whitehouse (D-R.I.) said on social media, "Well, it looks like we're headed for a shutdown at the hands of Senate Republican gremlins who (1) know that amendments can't pass because there's no House to send an amended bill back to (they adjourned) and (2) want amendments anyway."
"And (3) can't decide amongst themselves what won't-pass amendments they want," Whitehouse added. "I sure hope I'm wrong. But the Republican Senate caucus is a rudderless ship right now, so the gremlins are running the show."
Keep ReadingShow Less
Most Popular