30 Apr 2014 adminPS
If elected I will propose:
Michigan impose a 100% tax on Michigan based Fortune 500 (America 500 biggest public companies) CEO pay which is more than 25 times the average American worker.
This tax expires when the US Congress passes a 1,000% tax on Fortune 500 CEO pay above 25 times the average American workers’.
America is unique in the world in that its CEO class has turned capitalism’s rules on its head. Capitalism has always allowed entrepreneurs to start companies and become fabulously wealthy if the business is a great success. Non-entrepreneurs (managers of businesses they do not own or start) have the opportunity to make very good livings and enjoy the power and prestige of running major companies.
American CEO’s accepted this basic rule of capitalism until 1980. American CEO pay in the 1960’s was 20 times what the average worker made. Starting around 1980 American CEO’s started supercharging their paychecks. American CEO’s have not done a better job than non-American CEO’s since 1980. In fact, you could almost argue that they have not done as well as foreign CEO’s since 1980. In 1980, America dominated the world’s ten largest industries. Today, America dominates three of the world’s ten largest industries.
Here is a comparison of CEO pay per average worker pay in major countries:
Why does it make sense for Michigan to lead the way in attacking CEO Pay?
Michigan is an ideal state to lead. The CEO’s cannot just pick up and move the headquarters of an automobile company.
American companies have continuously told their workers that they could not give bigger raises because the companies had to be competitive with its competitors. This is the opportunity for the nation’s workers to collectively tell American CEO’s that they also have to be competitive with their foreign counterparts.
Tags: CEO Pay