Skip to content

Sherman Seeks Harsher Tax on Executive Pay

A handful of House Democrats are rallying behind legislation that would tax executives at bailed-out firms whose compensation totals more than $1 million per year, a proposal that goes even further than House-passed legislation targeting executive bonuses.Rep. Brad Sherman (D-Calif.), a member of the Financial Services Committee, on Monday introduced a bill to impose a 70 percent surtax on all pay that exceeds $1 million at firms that took more than $500 million in Wall Street bailout funds.“My bill deals with all compensation, whether it is called a salary, bonus, retention payment, commission, employee of the week prize, or whatever,— Sherman said in a statement. Some people will still say that a $1 million annual cap is too low, Sherman said, which is why the bill also allows the Treasury Department to permit bailed-out firms to give executives restricted stock. Sherman’s bill differs from similar legislation that cleared the House this month that would impose a 90 percent tax on executive bonuses at firms that took more than $5 billion in federal aid. That bill, which has stalled because of White House opposition, only applies to bonuses made after Jan. 1 and does not prevent bailed-out firms from giving million-dollar-a-month salaries to executives. Bill co-sponsors include Democratic Reps. Marcy Kaptur (Ohio), Bob Filner (Calif.), Dennis Kucinich (Ohio) and Peter DeFazio (Ore.).

Recent Stories

Alabama IVF ruling spurs a GOP reckoning on conception bills

House to return next week as GOP expects spending bills to pass

FEC reports shine light on Super Tuesday primaries

Editor’s Note: Never mind the Ides of March, beware all of March

Supreme Court to hear arguments on online content moderation

In seeking justice by jury trials, Camp Lejeune veterans turn to Congress