May 15, 2018
Status of State & Local “Pay Ratio” Tax Proposals
– Liz Dunshee
Although “pay ratio” taxes have been proposed in seven jurisdictions, Portland is the only one to-date that’s enacted a tax surcharge based on pay ratios. This blog from Meridian’s Don Kalfen has a handy chart summarizing the proposals & their status. Don also gives this commentary:
The recent disclosures of CEO pay ratios has neither caused a flood of new jurisdictions proposing taxes linked to a company’s CEO pay ratio nor any meaningful movement on outstanding legislative proposals. We believe this reflects the largely symbolic nature of these tax proposals, which do not appear to have broad-based legislative support. In fact, the California proposal is the third attempt to pass such legislation in that jurisdiction. At this juncture, we would be surprised if any of these proposals were enacted.