NEWS: Sanders, Tlaib Introduce Bill to End Outrageous CEO Pay and Combat Corporate Greed

WASHINGTON, Sept. 15 - At a time when 60% of Americans live paycheck to paycheck, Sen. Bernie Sanders (I-Vt.) and Rep. Rashida Tlaib (D-Mich.) today introduced the Tax Excessive CEO Pay Act to take on corporate greed and rein in the obscene salaries of America's top executives.

The legislation would raise taxes on corporations that pay their executives more than 50 times the wages of their workers. If Elon Musk receives the full $975 billion compensation package that Tesla's board proposed, Tesla could owe up to $100 billion more in taxes over the next decade under this legislation.

Joining Sanders and Tlaib as cosponsors of the bill are Sens. Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.), Peter Welch (D-Vt.), Ed Markey (D-Mass.) and 22 members of the House of Representatives.

"We can no longer tolerate a rigged economy that enables the richest man in the world, Elon Musk, to become the first trillionaire while 60% of Americans live paycheck to paycheck and millions work longer hours for lower wages," Sanders said. "It is unacceptable that the CEOs of the largest low-wage corporations make more than 630 times what their average workers make. This is not only morally obscene, but also insane economic policy. No society can survive when one man becomes a trillionaire while the working class is unable to afford basic necessities. At a time of record-breaking income and wealth inequality, we must demand that the wealthiest people and most profitable corporations in America finally pay their fair share of taxes and treat all employees with the respect and dignity they deserve. That's precisely what this legislation begins to do."

"Working people are sick and tired of corporate greed. CEOs are now making 290 times more than their average worker," Tlaib said. "It's disgraceful that corporations continue to rake in record profits by exploiting the labor of their workers. Every worker deserves a living wage and human dignity on the job. I'm proud to re-introduce the Tax Excessive CEO Pay Act with Senator Bernie Sanders to address the massive income and wealth inequality in our nation. It's time to make the rich pay their fair share."

The facts are clear:

• In the 1970s, CEOs of successful U.S. corporations made roughly 20 to 30 times more than their workers. Today, CEOs at the largest 350 U.S. publicly-owned firms make 290 times more than the average pay of a typical worker.
• In 2024, Walmart's CEO made $27.4 million - 930 times more than the median Walmart worker's pay of $29,469. JPMorgan Chase CEO Jamie Dimon made $37.7 million - 348 times more than his average employee. Home Depot's CEO made $15.6 million - 443 times more than the company's median pay. And at Coca-Cola, the CEO took home $28 million - 1,980 times more than the median worker, earning just $14,144.
• A typical Starbucks worker would need to work more than 6,600 years to equal the $95.8 million Starbucks CEO Brian Niccol made in 2024.

A recent national survey found that the typical American believes CEOs should make no more than six times what their workers earn. About 62% of Americans - including 62% of Republicans and 75% of Democrats - favor capping CEO pay relative to worker pay.

How the bill works:

• Corporations that pay their top executives more than 50 times what they pay their median workers would face higher corporate tax rates.
• Penalties would start at 0.5 percentage points for companies with CEO-to-worker pay ratios between 50-to-1 and 100-to-1, increasing to the highest rate for firms where executives make more than 500 times worker pay.
• The proposal would raise an estimated $150 billion over 10 years if current pay patterns continue.

If the Tax Excessive CEO Pay Act had been in effect in 2024, the nation's largest corporations would have paid billions more in taxes, including:

• JPMorgan Chase: $2.38 billion
• Google: $2.16 billion
• Walmart: $929 million
• Home Depot: $725 million
• Starbucks: $204 million
• Nike: $161 million

Importantly, if corporations boosted median worker pay to just $60,000 and capped CEO pay at $3 million, they would not owe any additional taxes under this plan.

The Tax Excessive CEO Pay Act also requires the Treasury Department to crack down on tax avoidance schemes, including corporations disguising pay disparities by outsourcing jobs to contractors. It would also expand transparency, requiring privately held corporations to disclose pay-ratio data just as publicly traded companies must under current law.

The bill is endorsed by the Institute for Policy Studies, Global Economy Project, AFL-CIO, Association of Flight Attendants-CWA, Service Employees International Union (SEIU), Public Citizen, International Longshore and Warehouse Union (ILWU), Oxfam America, National Nurses United, NETWORK Lobby for Catholic Social Justice, Patriotic Millionaires, Americans for Financial Reform, United for Respect, Strong Economy For All Coalition, Communications Workers of America (CWA), Jobs With Justice, Accountable.US/Accountable.NOW, The Value Alliance, Athena Coalition, MoveOn, United Electrical, Radio & Machine Workers of America (UE), Social Security Works, RootsAction, PowerSwitch Action, People's Action InstitueVoices for Progress, P Street, Coalition on Human Needs, the American Federation of State, County and Municipal Employees (AFSCME), and the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW).

Read the bill text here.

Read a summary of the bill here.

Read FAQs for the bill here.

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