When Congress passed the Dodd-Frank Act, it included a requirement that U.S. companies annually report the ratio between their CEO and median worker pay. This modest provision takes effect this year, but it’s unlikely to reverse America’s widening pay gap.
In fact, if President Trump has his way on tax reform, the earnings gap will get much worse courtesy of the federal government.
That’s not to say tax reform isn’t needed; in fact, it’s long overdue. But tax reform needs to put working families first, not overpaid CEOs and top executives. Furthermore, it shouldn’t add to the national debt, which means that lower corporate rates must be paid for by eliminating some of the trillion dollars in tax breaks handed out each year.
One way to ensure that CEOs and their firms don’t gouge the American taxpayer under the guise of tax reform – and offset the cost of lowering the corporate tax rate – would be for Congress to take a simple, straightforward step: eliminate the tax break for excessively high CEO pay.
Continue Reading at The Hill.