Peter Hentges (jbru) wrote,
Peter Hentges

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Way to go Sabo!

My Congressperson, Rep. Martin Olav Sabo, just introduced (again) the The Income Equity Act of 2005. In a nutshell, it limits the amount of employee income that a company can deduct from their taxable income to 25 times the income of the lowest paid full time employee.

The current limit is $1 million. If a company's lowest-paid employee makes $20,000, the maximum they could not deduct is $500,000.

Companies have often claimed that skyrocketing executive salaries are necessary to attract top talent. Nothing about this bill would prevent a company from paying whatever they needed to attract and maintain the executives they need to keep their company successful. It will, however, give them an incentive to increase pay to the lowest-paid employees, giving those employees a higher standard of living and greater purchasing power. That, in turn would likely lead to greater consumer spending and a healthier economy.

I love it when my representatives do something cool!
Tags: politics

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