LANSING, Mich. (WLNS) — Michigan U.S. Rep. Rashida Tlaib, D-Detroit, launched a invoice Monday with U.S. Sen. Bernie Sanders, I-Vt., that will considerably tax corporations whose executives earn excess of their staff.
Home Invoice 5298, often known as the Tax Extreme CEO Pay Act, would elevate taxes on companies that pay executives salaries at the very least 50 instances greater than these of their staff.
In line with a information launch, Tesla would owe as much as $100 billion extra in taxes over the subsequent decade underneath this laws if CEO Elon Musk receives the total $975 billion compensation package deal.
The invoice would impose penalties beginning at 0.5 proportion factors for corporations with CEO-to-worker pay ratios between 50-to-1 and 100-to-1, rising to the best charge for companies the place executives make greater than 500 instances employee pay.
The proposal is estimated to boost $150 billion over 10 years if present pay patterns proceed.
Rep. Rashida Tlaib, CPC Vice Chair, speaks on Capitol Hill in response to the proposal to chop Medicaid, on Might 21, 2025 in Washington, D.C. (Tasos Katopodis/Getty Photographs for Individuals’s Motion Institute)
“Working people are sick and tired of corporate greed. CEOs are now making 290 times more than their average worker,” Tlaib stated. “It’s disgraceful that companies proceed to rake in document earnings by exploiting the labor of their staff. Each employee deserves a residing wage and human dignity on the job.”
Becoming a member of Tlaib and Sanders as cosponsors are Sens. Elizabeth Warren, D-Mass., Chris Van Hollen, D-Md., Peter Welch, D-Vt., Ed Markey, D-Mass., and 22 members of the Home.
Whereas the invoice has important Democratic help, each chambers of Congress are managed by Republicans.
