March 11, 2020
Tying Corporate Tax Rates to Pay Ratios?
– Lynn Jokela
Liz blogged last fall about how executive pay was getting more political as bills were introduced in Congress aiming to get companies with high pay ratios to pay higher taxes. Now, news reports say California lawmakers are considering a similar idea – under California SB 37 companies making over $10 million would pay a higher California tax rate with the actual rate determined based on the ratio of CEO pay to average worker pay.
It doesn’t sound like the California bill is expected to get much traction, it’s currently stuck in California’s Senate Rules Committee. It will be interesting to see if other states or cities start putting similar bills up for consideration.