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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%."

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 96032

Reported Deaths: 2894
CountyConfirmedDeaths
Hinds7110159
DeSoto556559
Harrison385374
Jackson348670
Madison329788
Rankin329377
Lee271468
Forrest247872
Jones247579
Washington223872
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Lauderdale2049125
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Oktibbeha177850
Lamar170035
Lowndes156958
Neshoba1566104
Panola147129
Sunflower146546
Warren140550
Leflore140481
Pontotoc126616
Pike123451
Monroe122868
Copiah118433
Scott117427
Coahoma115528
Holmes109659
Marshall109517
Lincoln109053
Grenada108336
Yazoo105930
Simpson103346
Union99724
Tate98737
Leake95338
Adams93837
Wayne90021
Pearl River88353
Marion85935
Prentiss85517
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Itawamba81521
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George77113
Newton77024
Tallahatchie77021
Winston73819
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Chickasaw67924
Tippah66917
Attala65925
Walthall60026
Clay59218
Clarke58746
Hancock58222
Jasper57315
Noxubee54816
Smith53215
Calhoun51512
Tunica48615
Claiborne46316
Montgomery46120
Lawrence43313
Yalobusha43314
Perry42319
Humphreys37715
Greene37517
Quitman3735
Stone37112
Jefferson Davis34111
Webster33813
Amite32910
Carroll31612
Wilkinson30518
Kemper28915
Sharkey26613
Jefferson2439
Benton2263
Franklin1923
Choctaw1856
Issaquena1043
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Alabama Coronavirus Cases

Confirmed Cases: 134231

Reported Deaths: 2357
CountyConfirmedDeaths
Jefferson19572348
Mobile13320292
Montgomery8811183
Tuscaloosa8586117
Madison782078
Shelby592349
Lee588759
Baldwin545650
Marshall393343
Calhoun349942
Etowah343945
Morgan327328
Houston280221
Elmore265947
DeKalb240620
St. Clair230835
Walker230683
Talladega214628
Limestone208820
Cullman189020
Dallas178326
Franklin176729
Autauga175725
Russell17573
Lauderdale169833
Colbert164126
Blount160815
Escambia160324
Chilton156431
Jackson156011
Covington138527
Dale135844
Coffee13206
Pike119410
Chambers116142
Tallapoosa115685
Clarke108916
Marion95729
Butler91639
Barbour8737
Winston73812
Marengo71620
Pickens65614
Lowndes65327
Bibb65210
Randolph64213
Hale63428
Lawrence61623
Geneva6074
Cherokee60313
Bullock59914
Monroe5848
Clay5797
Washington55613
Perry5416
Crenshaw53632
Conecuh53511
Wilcox53111
Henry4935
Macon48119
Fayette4508
Sumter43519
Lamar3662
Cleburne3646
Choctaw34912
Greene30315
Coosa1683
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