STREAMING NOW: Watch Now

Bernie Sanders releases tax plan to target income inequality

Vermont Sen. Bernie Sanders released a new plan on Monda...

Posted: Sep 30, 2019 6:40 AM

Vermont Sen. Bernie Sanders released a new plan on Monday to tax companies with large pay gaps between their executives and 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," the Democratic presidential candidate said of the plan. "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."

Corporate pay disparities have come under increasing scrutiny as politicians and individual activists — including, most notably, the heiress Abigail Disney — have called out CEO pay packages at companies that rely on low-wage workers.

The income inequality tax, which comes less than a week after Sanders released a separate wealth tax plan, would penalize companies who have large disparities in compensation between their highest paid officials and median workers. The plan would raise an estimated $150 billion over the next decade, according to a Sanders campaign statement.

The tax kicks in at half a percentage point for companies who pay their chief executive -- or their highest paid employee, if it's not the CEO -- more than fifty times their median worker and caps off at 5 percentage points for companies who pay their top executive as much as five hundred times more than the median employee. This tax applies to all private and publicly held corporations with annual revenue of more than $100 million. The Securities and Exchange Commission requires companies to disclose its CEO to median work pay ratio.

In the release of the plan, Sanders outlined how much this tax would have forced large corporations to pay in taxes.

According to the campaign, if this tax were in effect last year, "McDonald's would have paid up to $110.9 million more in taxes, Walmart would have paid up to $793.8 million more in taxes, JPMorganChase would have paid up to $991.6 million more in taxes, Home Depot would have paid up to $538.2 million more in taxes, and American Airlines would have paid up to $18.8 million more in taxes."

Calling out large corporations for getting away with paying little in taxes is a central part of Sanders' stump speech. The presidential hopeful will often do a call and response with the audience, asking them how much corporations like Amazon have paid in taxes, to which the audience typically replies "zero" in unison.

Sanders has previously attacked several of these companies for having relatively low minimum wages for their workers.

A year ago, Sanders lashed out at Walmart, McDonalds, American Airlines and several other major firms for paying some employees so little that they have to sign up for government benefits. He introduced a bill that would slap a tax on these companies equal to the value of the public assistance their workers receive.

He has also urged companies to raise their minimum wage to $15 an hour. Some, including Amazon and Disney, did so. McDonalds said earlier this year it would stop lobbying against raising the minimum wage, which is $7.25 an hour on the federal level.

For Sanders, a tax on corporations with large pay discrepancies fits into the larger narrative of his campaign's message of elevating workers' rights and exposing levels of income and wealth inequality.

"This campaign is about transforming this country and creating a government, and an economy that works for all of us, not just the top 1%. This campaign is about ending the grotesque level of income and wealth inequality that exists in this country," Sanders said in Rock Hill, South Carolina, earlier this month. "I want each and every one of you to be thinking hard about whether you are comfortable living in a country where three people own more wealth than the bottom half of American society. Where the top 1% owns more wealth than the bottom 92%."

Oregon Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 32994

Reported Deaths: 547
CountyConfirmedDeaths
Multnomah7204138
Marion469594
Washington454060
Umatilla298741
Clackamas242061
Malheur163327
Lane123417
Jackson11615
Deschutes85212
Yamhill76213
Jefferson5418
Polk53215
Linn52213
Morrow5056
Lincoln48213
Union4462
Benton3146
Wasco2963
Klamath2802
Hood River2520
Douglas2334
Clatsop2170
Josephine1982
Columbia1791
Coos1570
Baker942
Crook621
Tillamook530
Lake330
Curry310
Wallowa311
Sherman180
Harney120
Grant100
Gilliam80
Unassigned00
Wheeler00

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 812711

Reported Deaths: 15633
CountyConfirmedDeaths
Los Angeles2684556515
Riverside589321206
San Bernardino54482925
Orange534481216
San Diego46734776
Kern31994369
Fresno28441382
Sacramento22356406
Santa Clara21241314
Alameda21240406
San Joaquin20245441
Contra Costa16640206
Stanislaus16471356
Tulare15970263
Ventura12775150
Imperial11852317
San Francisco11195101
Monterey995372
San Mateo9897150
Santa Barbara9090113
Merced8872142
Kings765180
Sonoma7412122
Marin6730118
Solano640065
Madera453965
Placer358745
San Luis Obispo356229
Butte283344
Yolo281555
Santa Cruz23609
Sutter170511
Napa169013
San Benito134811
Yuba11537
El Dorado11304
Mendocino93418
Shasta88317
Lassen7400
Glenn5783
Tehama5735
Lake55511
Nevada5377
Colusa5316
Humboldt5088
Calaveras31714
Amador29616
Tuolumne2274
Inyo18815
Mono1662
Siskiyou1650
Del Norte1391
Mariposa752
Plumas500
Modoc270
Trinity160
Sierra60
Alpine20
Unassigned00
Medford
Clear
90° wxIcon
Hi: 97° Lo: 55°
Feels Like: 90°
Brookings
Overcast
57° wxIcon
Hi: 73° Lo: 57°
Feels Like: 57°
Crater Lake
Clear
72° wxIcon
Hi: 86° Lo: 45°
Feels Like: 72°
Grants Pass
Clear
82° wxIcon
Hi: 96° Lo: 55°
Feels Like: 82°
Klamath Falls
Clear
72° wxIcon
Hi: 87° Lo: 41°
Feels Like: 72°
Hot and dry week, smoke returns
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events

Latest Video

Image

Tuesday, September 29th Evening Weather

Image

MEDFORD SCHOOL DISTRICT RESPONDS AFTER EXPLICIT 'ZOOM BOMBING'

Image

Tuesday, September 29 morning weather

Image

Possible housing solutions after wildfires

Image

Monday, September 28th Evening Weather

Image

Similarities in days had southern Oregonians on edge

Image

Monday, September 28 afternoon weather

Image

Monday, September 28 morning weather

Image

Sunday, September 27 evening weather

Image

Sunday, September 27 morning weather