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State Lawmaker Wants to Link CEO Salaries to Corporate Taxes

A state lawmaker wants to curb what he calls "skyrocketing" CEO salaries by linking them to corporate taxes.

Democratic Senator Mark DeSaulnier of Concord says CEOs make, on average, 280 times what a typical worker does and he wants to provide tax breaks for companies that lower that ratio.

"The bill has a sliding scale," DeSaulnier said. 

Pay 100 times higher would trigger a drop.

"And the rates will go up as the disparity is greater," he said. 

Former U.S. Secretary of Labor Robert Reich is a supporter, saying incentivizing higher worker salaries is a no-brainer when it comes to an economic recovery.

"There is not the purchasing power left in the middle class to turn around and buy what the economy is producing," he said. 

The California Chamber of Commerce has labeled the bill a "job killer," saying it will give every other state a more business-friendly tax environment.

 

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