CEO's are basically stealing from their very own workers.
It's good to be chief executive.
American CEOs saw their pay spike 15 percent last year, after a 28 percent pay rise the year before, according to a report by GMI Ratings cited by The Guardian. Meanwhile, workers saw their inflation-adjusted wages fall 2 percent in 2011, according to the Labor Department.
That's in line with a trend that dates back three decades. CEO pay spiked 725 percent between 1978 and 2011, while worker pay rose just 5.7 percent, according to a study by the Economic Policy Institute released on Wednesday. That means CEO pay grew 127 times faster than worker pay.
Income inequality between CEOs and workers has consequently exploded, with CEOs last year earning 209.4 times more than workers, compared to just 26.5 times more in 1978 -- meaning CEOs are taking home a larger percentage of company gains.
From the end of WWII until 1980
the tax on incomes over $4,000,000 were over 80%
and during which period CEOs made 40 times median employee compensation
and during which period compensation of CEOs and workers doubled equally
along with doubling of productivity.
After the top tax rate was reduced from over 80% to below 40% early in the Reagan Presidency
median employee compensation remained constant
while productivity again doubled
but during this period CEO compensation increased to 400 times median employee.
With low tax rates on top incomes
CEOs have no incentive to share gains of productivity with their employees.
With high marginal tax rates on top incomes
CEOs would rather share income growth with their employees
rather than give it away in taxes.
Consequently, American employees will never get a raise
as long as top taxes are so low.
This is a terrible policy that has gone on for far too long. It is why i think we need to raise the minimum wage to $10/hr and have a much higher tax on very high earners....like 50% on income over $5 million/year and 75% over $10 million
They do that in France and those people started moving to neighboring countries. So instead of getting 30% of their income, they will get nothing. You can tax a people 100% or 0% but you will get the same amount of tax revenue either way.
And would you tax companies the 50-75% too? If so, I assume you have a plan to provide government jobs to workers when nobody is left to hire them?