On Monday Sanders’ announced the Income Inequality Plan which would tax “companies with exorbitant pay gaps between their executives and typical 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,” Sanders said in a statement. “They want corporations to invest in their workers, not just dividends, stock buybacks and outrageous compensation packages to their executives.”
The plan comes on the heels of Sanders’ separate wealth-tax plan to tax the nation’s ultra-rich.
The plan would increase the tax rate by 0.5 percentage points for companies whose ratio falls between 50-to-1 and 100-to-1, up to a 5-point increase for companies whose pay ratio is more than 500-to-1. The tax would apply to all private and publicly held corporations with annual revenue of more than $100 million. Companies would not owe any additional taxes under the plan if they increased annual median worker pay to $60,000 and curbed CEO compensation to $3 million, the Sanders campaign said.
Sanders’ campaign said the inequality tax would raise an estimated $150 billion over the next decade. The revenue generated from the tax would be used to pay for Sanders’ plan to eliminate existing medical debt.
Here’s how much more companies would have paid in taxes if the tax plan had been in effect last year, according to the Sanders campaign:
- McDonald’s would have paid up to $110.9 million more.
- Walmart would have paid up to $793.8 million more.
- JPMorgan Chase would have paid up to $991.6 million more.
- Home Depot would have paid up to $538.2 million more.
- American Airlines would have paid up to $18.8 million more.
“At a time of massive income and wealth inequality, the American people are demanding that large, profitable corporations pay their fair share of taxes,” Sanders said. “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.”