Politics To break the corporate tax logjam, tax overinflated CEO pay
Family fund day
Millions of families are receiving child tax credits payments. Sweltering heat is moving farther east. It's Thursday's news.???? It's Julius, and let's dive right into Thursday's news.
Key players in the Capitol Hill budget debate are deadlocking over the U.S. corporate tax rate.
Senate Budget Committee Chair Bernie Sanders (I-Vt.) wants to push that rate up from the current 21 percent to , the corporate tax rate before the 2017 Republican tax cuts. President Biden has proposed hiking the current rate to . Sen. Joe Manchin (D-W.Va.) has set his sweet spot at .
Tax Preparer Sentenced to a Year for Not Paying Her Own Taxes
A Virginia woman has been sentenced to one year and a day in prison for failing to pay her taxes. Willette J. Holland, owner of Tax Professionals, came under investigation starting in August 2014 regarding her taxes. © Justin Sullivan/Getty Images California's sent out 2.5 million stimulus payments and if a person hasn't received one it may be because they haven't filed their taxes yet. In this Photo Illustration, twenty and five dollar bills are displayed on August 29, 2017, in San Anselmo, California.
Those percentage-point differences matter - especially as lawmakers face pressure to raise enough revenue to cover the full cost of an ambitious spending plan.
New data shows how white top companies are, despite diversity, inclusion pledges: 5 Things podcast
At America’s largest and most powerful companies, 1 in every 97 white workers is an executive. Only 1 in every 443 Black or Hispanic workers holds a top job.This transcript was automatically generated, and then edited for clarity in its current form. There may be some differences between the audio and the text.
Manchin's proposal would raise about $300 billion less than Biden's, a revenue gap significantly higher than for White House priorities that range from universal paid family and medical leave to universal pre-K.
Other than arm wrestling, how could all the players here resolve their differences? They could top off a corporate tax rate increase with a CEO pay surtax - an extra levy on firms that pay their top executives absurdly more than their typical workers.
This approach would have two appealing selling points for Manchin and other moderate Dems.
First, a CEO pay surtax would be widely popular because overpaid CEOs have become incredibly unpopular. An overwhelming of Americans believe the leaders of large U.S. companies make way too much money, a Stanford survey has found.
For true American prosperity, make the child tax credit permanent
Making the expansions to the Child Tax Credit permanent is a first step towards making our tax system work for all families. "We want the tax code to lift our low-income families up, and it wasn't doing that," stated Prosperity Now's Associate Director of Policy Joanna Ain, in a recent CBS News piece. It is no surprise that policymakers, economists and cabinet officials support extending or keeping this benefit. In USA Today, Sens. Cory Booker (D-N.J.), Michael Bennet (D-Colo.), Sherrod Brown (D-Ohio) and Raphael Warnock (D-Ga.
That sentiment might be even stronger in Manchin's West Virginia, where Big Pharma CEOs have made a fortune flooding communities with opioids. Three drug distributors - McKesson, Cardinal Health, and Amerisourcebergen - are over their role in the state's devastating addiction rates.
All these corporations paid their top executives more than in 2020. Average income in West Virginia is just .
Top Democrat offers bill to overhaul tax break for business owners
Senate Finance Committee Chairman Ron Wyden (D-Ore.) on Tuesday released a bill that would overhaul a deduction for non-corporate business income that was created by Republicans' 2017 tax law.The proposal comes after key Senate Democrats last week reached an agreement on a $3.5 trillion budget plan, and it comes as Democrats are discussing how to pay for their spending priorities."This bill is a win-win," Wyden said in a statement. "It's goingThe proposal comes after key Senate Democrats last week reached an agreement on a $3.5 trillion budget plan, and it comes as Democrats are discussing how to pay for their spending priorities.
Nationwide, Americans across the political spectrum have expressed support for much tougher policies to crack down on excessive executive compensation. Stanford pollsters , for example, that 52 percent of Republicans, 64 percent of Independents, and 66 percent of Democrats favor a hard cap on CEO pay relative to worker pay.
A CEO pay surtax would also directly address the global competitiveness of U.S. corporate enterprises.
Manchin and other moderate lawmakers have raised concerns about U.S. corporations bearing a heavier tax burden than their foreign competitors. But U.S. corporations only face a higher tax rate than their competitors on paper. In real life, massive loopholes have U.S. corporations paying significantly than corporations in any .
More than 100 business leaders urge lawmakers to pass infrastructure bill
A coalition of more than 100 business leaders on Monday penned a letter to Congressional leaders, urging them to pass the infrastructure bill that was agreed to by the White House and a bipartisan group of Capitol Hill negotiators."We write to express strong support for your promising efforts to design and pass a Bipartisan Infrastructure Framework, a long-awaited and desperately needed program to renew and rebuild our nation's crumbling"We write to express strong support for your promising efforts to design and pass a Bipartisan Infrastructure Framework, a long-awaited and desperately needed program to renew and rebuild our nation's crumbling infrastructure," the letter, which was signed by 146 business leaders, r
Moderate Democrats eager to improve corporate competitiveness do have a more promising option. They could incentivize U.S. corporations to rein in CEO pay.
Top American executives today make eight times as much on average as their Japanese counterparts, three times as much as French CEOs, and twice as much as U.K. and German CEOs, show.
This executive excess places U.S. firms at a global disadvantage. In after , exceptionally high CEO pay correlates with mediocre financial performance.
The problem turns out to be even greater at corporations with overpaid executives and underpaid employees. A 2018 , for instance, found that such disparities drive up employee dissatisfaction and turnover and reduce sales.
Corporate boards have proved incapable of fixing our deeply entrenched, highly ineffective corporate reward structure. In fact, during the pandemic, my research shows that of America's 100 largest low-wage employers moved executive bonus goalposts or otherwise rigged pay rules to inflate CEO pay while their workers suffered. The case for congressional action on the CEO pay front could hardly be stronger.
Elizabeth Warren cornered by billionaire: "I shouldn't get Social Security"
Watch: Sen. Warren patiently explains to Home Depot founder Ken Langone that Social Security is not welare Elizabeth Warren and Ken Langone Photo illustration by Salon/Getty Images
So how could a CEO pay surtax work?
Sanders has introduced legislation, the , that could easily be adapted for this purpose. Under this approach, firms with pay ratios of less than 50 to 1 between their highest-paid executive and their median worker pay wouldn't owe any surtax whatsoever. Others would face graduated tax rate increases, depending on the size of their pay gaps.
Both and , for example, awarded their highest-paid executive more than 1,000 times as much as their typical workers in 2020. If a CEO pay surtax had been in effect last year, these firms would have owed an extra $200 million for each percentage point increase in their tax rate.
The combination of an across-the-board rate hike with a CEO pay surtax would send a powerful message: All large profitable corporations are going to pay their fair share of much-needed public investments, and those that are contributing the most to inequality will pay even more.
Sarah Anderson directs the Global Economy Project and co-edits Inequality.org at the Institute for Policy Studies.
Cryptocurrency industry fears big tax hit in infrastructure bill .
Lawmakers want people facilitating trades in Bitcoin and other digital assets to be subject to reporting rules similar to those governing the sale of stocks and other securities.Buried in the still-unreleased bipartisan infrastructure package is a sweeping crackdown on cryptocurrency transactions that could generate significant tax revenue for the government and major anxiety in a financial technology industry that thrived during the coronavirus pandemic.