A proposed bill, SB1372, in the California Legislature Grand Soviet, would punish profitable publicly traded firms that make enough money to pay their CEO the large salary they think he is worth by hiking the businesses taxes from 8.8% to as high as 13%.
Many large and profitable firms pay their CEO many times what the “average worker” earns. Of course, being a successful CEO is a rarer talent than flipping burgers, and consequently those who are competent CEOs of large corporations can command large salaries. Are some of these CEOs earning more than they are worth? Most likely. However, this is the concern of the stock holders, not busybody California legislators.
This bill would do nothing but drive profitable businesses out of California, who would take all that tax money that California depends on with them.
Of course, there are plenty of ways to get around this, such as have a formal CEO who makes little while giving true control to other officers. Alternately, their salary could be low, but they could be compensated in other ways.
And yet, these very same legislators are wondering why people and businesses are fleeing California is droves. But then, perhaps they don’t care just as long as they can impose their vengeance on evil capitalists.