What's one way to stop companies from paying their CEOs too much?Romance Archives Taxes.
Portland, Ore. this week passed a law that penalizes companies whose chief executives make more than 100 times the median pay of their workers.
The tax, approved by Portland's city council, is a way of combatting income inequality.
Companies will have to pay an additional 10 percent in taxes if they violate the rule, according to the New York Times. If a chief executive earns more than 250 times as much as his employees taxes will increase 25 percent.
Portland's tax is the first of its kind in the United States, the New York Times said. About 550 companies in Portland pay the business tax that the penalty is based on, the Times reported.
Time to lower that CEO pay or raise workers' salaries.
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