Warren: Trim Corporate Pay Tax Breaks to Cover Extra Social Security Checks
Elizabeth Warren blasted corporate greed on Thursday, calling for all Social Security recipients to receive a $580 check paid for by trimming tax perks for corporate salaries.
Warren is a well-known for being against corporate greedy and for her desires to make Wall Street pay their fair share via taxes and other social programs.
The Hill reports:
Noting that CEO compensation for the nation’s 350 biggest companies rose 3.9 percent in 2014, Warren proposed giving Americans that rely on Social Security, veterans benefits or equivalent programs a one-time $580 payment, which is equal to 3.9 percent of the benefits they would otherwise receive.
Warren’s bill comes a few weeks after the Obama administration announced there would be no cost-of-living increase to Social Security payments in 2016. The rationale behind halting the increase for the first time since 2011 is that low inflation has kept consumer prices relatively flat.
But Warren argues that CEOs are still enjoying income boosts, and they can chip in to cover heightened payments for Americans reliant on Social Security.
To pay for this emergency payment, Warren proposed scrapping a tax code provision that allows corporations to deduct a portion of executive salary, so long as the pay is “performance based.”
Under the tax code, corporations can only deduct the first $1 million in cash-based executive pay, but there are exemptions for performance-based pay, like stock options.
Photo credit: Mother Jones.