Now I’m convinced. The political left is nuts, out of control and naive beyond belief. What the hell business is it of a city what companies pay their CEOs or anyone else? Address inequality? What nonsense, what utter nonsense! This penalty tax has nothing whatsoever to do with addressing inequality. It is merely a revenue raiser under the guise of some vague feel good notion of fairness.
Imagine you built a small business, imagine you put your blood, sweat and tears and years of effort into that business and some left-wing do-gooder comes along and decides how much you should pay yourself based on what he or she considers equality.
It’s hard to imagine, but it’s real.
Moving to address income inequality on a local level, the City Council in Portland, Ore., voted on Wednesday to impose a surtax on companies whose chief executives earn more than 100 times the median pay of their rank-and-file workers.
The surcharge, which Portland officials said is the first in the nation linked to chief executives’ pay, would be added to the city’s business tax for those companies that exceed the pay threshold. Currently, roughly 550 companies that generate significant income on sales in Portland pay the business tax.
Under the new rule, companies must pay an additional 10 percent in taxes if their chief executives receive compensation greater than 100 times the median pay of all their employees. Companies with pay ratios greater than 250 times the median will face a 25 percent surcharge…
… Portland’s executive-pay surcharge will be levied as a percentage of what a company owes on the city’s so-called business license tax, which has been in place since the 1970s. City officials estimated that the new tax would generate $2.5 million to $3.5 million a year for the city’s general fund, which pays for basic public services such as housing and police and firefighter salaries.