SEVERE WX : Special Weather Statement View Alerts

Bernie Sanders releases tax plan to target income inequality

Vermont Sen. Bernie Sanders released a new plan on Monda...

Posted: Sep 30, 2019 8:40 AM

Vermont Sen. Bernie Sanders released a new plan on Monday to tax companies with large pay gaps between their executives and workers.

"The American people are sick and tired of corporate CEOs who now make 300 times more than their average employees, while they give themselves huge bonuses and cut back on the healthcare and pension benefits of their employees," the Democratic presidential candidate said of the plan. "It is time to send a message to corporate America: If you do not end your greed and corruption, we will end it for you."

Corporate pay disparities have come under increasing scrutiny as politicians and individual activists — including, most notably, the heiress Abigail Disney — have called out CEO pay packages at companies that rely on low-wage workers.

The income inequality tax, which comes less than a week after Sanders released a separate wealth tax plan, would penalize companies who have large disparities in compensation between their highest paid officials and median workers. The plan would raise an estimated $150 billion over the next decade, according to a Sanders campaign statement.

The tax kicks in at half a percentage point for companies who pay their chief executive -- or their highest paid employee, if it's not the CEO -- more than fifty times their median worker and caps off at 5 percentage points for companies who pay their top executive as much as five hundred times more than the median employee. This tax applies to all private and publicly held corporations with annual revenue of more than $100 million. The Securities and Exchange Commission requires companies to disclose its CEO to median work pay ratio.

In the release of the plan, Sanders outlined how much this tax would have forced large corporations to pay in taxes.

According to the campaign, if this tax were in effect last year, "McDonald's would have paid up to $110.9 million more in taxes, Walmart would have paid up to $793.8 million more in taxes, JPMorganChase would have paid up to $991.6 million more in taxes, Home Depot would have paid up to $538.2 million more in taxes, and American Airlines would have paid up to $18.8 million more in taxes."

Calling out large corporations for getting away with paying little in taxes is a central part of Sanders' stump speech. The presidential hopeful will often do a call and response with the audience, asking them how much corporations like Amazon have paid in taxes, to which the audience typically replies "zero" in unison.

Sanders has previously attacked several of these companies for having relatively low minimum wages for their workers.

A year ago, Sanders lashed out at Walmart, McDonalds, American Airlines and several other major firms for paying some employees so little that they have to sign up for government benefits. He introduced a bill that would slap a tax on these companies equal to the value of the public assistance their workers receive.

He has also urged companies to raise their minimum wage to $15 an hour. Some, including Amazon and Disney, did so. McDonalds said earlier this year it would stop lobbying against raising the minimum wage, which is $7.25 an hour on the federal level.

For Sanders, a tax on corporations with large pay discrepancies fits into the larger narrative of his campaign's message of elevating workers' rights and exposing levels of income and wealth inequality.

"This campaign is about transforming this country and creating a government, and an economy that works for all of us, not just the top 1%. This campaign is about ending the grotesque level of income and wealth inequality that exists in this country," Sanders said in Rock Hill, South Carolina, earlier this month. "I want each and every one of you to be thinking hard about whether you are comfortable living in a country where three people own more wealth than the bottom half of American society. Where the top 1% owns more wealth than the bottom 92%."

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 480845

Reported Deaths: 6511
CountyCasesDeaths
Hennepin997381576
Ramsey42744796
Dakota35818383
Anoka33010383
Washington21862253
Stearns18683200
St. Louis14655262
Scott13119107
Wright12414114
Olmsted1170088
Sherburne866373
Carver756340
Clay683686
Rice664291
Blue Earth587235
Kandiyohi576674
Crow Wing514780
Chisago493644
Otter Tail479470
Benton441390
Winona414248
Mower400231
Douglas390768
Nobles385347
Goodhue383368
Polk341062
McLeod336349
Beltrami335350
Morrison321846
Lyon311543
Itasca308545
Becker307841
Isanti303453
Carlton298544
Steele297611
Pine280616
Freeborn276823
Nicollet252341
Todd244030
Brown240737
Le Sueur230520
Mille Lacs225747
Cass218124
Waseca206917
Meeker205534
Martin186728
Wabasha18543
Roseau178317
Hubbard159740
Houston156414
Dodge15124
Renville147340
Redwood146327
Fillmore13648
Chippewa135735
Cottonwood133520
Wadena128120
Pennington127016
Faribault121716
Aitkin117833
Sibley116410
Rock115513
Watonwan11518
Kanabec106719
Pipestone100724
Yellow Medicine97617
Murray9418
Jackson92510
Swift87218
Pope7885
Marshall76815
Stevens7378
Lake72617
Clearwater71514
Lac qui Parle68216
Wilkin66510
Koochiching61711
Big Stone5123
Lincoln5032
Grant4888
Norman4648
Mahnomen4377
Unassigned43668
Kittson40721
Red Lake3544
Traverse3015
Lake of the Woods2131
Cook1190

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 359747

Reported Deaths: 5357
CountyCasesDeaths
Polk57625545
Linn20536311
Scott18203205
Black Hawk16187286
Woodbury14875211
Johnson1374173
Dubuque13480194
Dallas1123790
Pottawattamie10716140
Story1012945
Warren550271
Clinton540783
Cerro Gordo531080
Webster515686
Marshall493772
Sioux491568
Buena Vista469736
Des Moines455059
Muscatine446789
Wapello4261107
Jasper406865
Plymouth393377
Lee373551
Marion356969
Jones293854
Henry292535
Carroll284048
Bremer276554
Crawford272035
Boone258230
Washington253145
Benton250454
Mahaska223145
Jackson220438
Dickinson216338
Tama211564
Kossuth206954
Clay192925
Hamilton191641
Delaware188539
Winneshiek186926
Fayette184033
Buchanan183630
Page181619
Hardin179638
Wright179131
Harrison178969
Cedar175522
Clayton168153
Butler165731
Floyd162439
Mills162420
Cherokee153535
Madison153418
Poweshiek153429
Hancock146529
Lyon145441
Iowa143823
Allamakee143644
Appanoose138447
Grundy138230
Jefferson137532
Winnebago137530
Calhoun133010
Cass132448
Mitchell130040
Louisa127941
Union125931
Chickasaw124613
Sac123718
Emmet120740
Shelby119933
Franklin118319
Humboldt116725
Guthrie116028
Montgomery104036
Palo Alto103921
Howard102421
Clarke99220
Keokuk97529
Unassigned9300
Monroe92628
Adair91626
Ida90732
Pocahontas85419
Davis82223
Monona81525
Greene76610
Lucas73121
Osceola70014
Worth6907
Taylor66312
Fremont5869
Decatur5729
Van Buren55818
Ringgold51416
Wayne48621
Audubon4839
Adams3244
Rochester/St. Mary'S
Clear
28° wxIcon
Hi: 33° Lo: 22°
Feels Like: 20°
Mason City
Cloudy
27° wxIcon
Hi: 31° Lo: 21°
Feels Like: 19°
Albert Lea
Cloudy
28° wxIcon
Hi: 32° Lo: 17°
Feels Like: 22°
Austin
Partly Cloudy
27° wxIcon
Hi: 33° Lo: 16°
Feels Like: 18°
Charles City
Partly Cloudy
27° wxIcon
Hi: 34° Lo: 19°
Feels Like: 21°
Minor snow chances into the weekend
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Aaron's Thursday Evening Forecast

Image

Johnson & Johnson vaccine will be reviewed tomorrow

Image

Minnesota announces new vaccine timeline

Image

Assisted Living allowing visitors

Image

Iowa Vaccine rollout timeline

Image

Catalytic Converter Thefts Continue

Image

Community Kitchen Serves More Meals During The Pandemic

Image

MercyOne North Iowa Wait List For Vaccine

Image

LTC Facilities Advocate For Vaccinations

Image

02-25-2021 for Bri

Community Events