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San Francisco Passes "Overpaid Executive Tax" Law



In a brilliant and long-overdue move, the city of San Francisco, in which many of the newly-minted millionaires from Silicon Valley live, just voted in a new tax that will be levied on companies that pay their CEOs too much. If a company pays its chief executive more than 100 times the median salary of its workforce, it will be taxed an additional 0.1%. The surcharge increases by 0.1 percentage point for each factor of 100 that a CEO is paid above the median salary, up to a maximum of 0.6%. This is a small but creative start in addressing the creation of socioeconomic inequality. The architect of the law hopes it will be imitated by other cities, states and nations. We hope so, too.


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