To: robert b furman who wrote (1102 ) 4/28/2014 10:44:01 AM From: Kirk © Read Replies (1) | Respond to Are you and I really that much smarter than anyone in politics or are they trying to destroy the country and CA under cover of some tax fairness BS?taxfoundation.org Scott Drenkard SB 1372 , which would tie the corporate income tax rate in the state to the ratio of pay of a company’s CEO compared to its median worker. While proposals to cap CEO pay are not entirely novel , this is the first such proposal I know of to attempt to do so through the tax code.Proponents of the bill argue the measure would push “companies to put less money into the hands of their CEOs and more into the hands of average employees.” But I’m not convinced the outcomes would be as proponents intend.If the CEO to median worker compensation ratio is The applicable corporate income tax rate is Over zero but not over 25 7% Over 25 but not over 50 7.5% Over 50 but not over 100 8% Over 100 but not over 150 9% Over 150 but not over 200 9.5% Over 200 but not over 250 10% Over 250 but not over 300 11% Over 300 but not over 400 12% Over 400 13%
NOTE: This special formulation would only apply to publicly-traded corporations, and CEO compensation would be calculated based on SEC definitions. already the highest in the world !), companies would face a top marginal rate of 48 percent, which doesn’t really pass the laugh test for competing in a global market. JC Penny, Abercrombie and Fitch, Starbucks, and other popular employers ). These businesses would be less competitive at attracting capable CEOs if they were forced by tax law to cut executive wages in half.job creation , spur research and development , boost investment , preference American manufacturing , change business geographical location , the list goes on. This proposal, if nothing else, adds “promote wage equality” to that list of tasks for the corporate tax code.California .
