Average workers annual salary in the United States is $19000, but average CEOs salary is $36 million a year, according to U.S. Bureau of Labor Statistics. In 1990, average CEOs got 107 times more than average company workers; it is nearly $2 million. In 2005, CEOs pay jumped to 525 times that is about $14 million. And last year, this gap jumped to sky level high is 1,400 times that is $36 million a year! This is completely injustice; this is unfair.
According to Institute for Policy Research, all corporate workers earn totally less than half amount than total of all CEOs. The workers pay nearly double taxes than the CEOs. Because CEOs get millions of dollars, they supposed to pay 35% of tax. And the average workers should pay somewhere between 0 to 20% tax. But the news is completely shocking. ExtremeInequality.org reports that last year in 2008, CEOs should pay$35 billion taxes but they paid only $12.6 billion. Can you believe it? It is less than 13% tax rate! Their tax rate is even below than their office representatives.
Each year a large portion government’s tax should come from CEO salaries. Because CEOs pay average of only 12.6% tax, government imposes higher tax on workers. If CEOs pay proper tax, we might see that low earning people who earn less than $10,000 a year, they don’t need to any tax. So they can live their lives better.
Sincerely,
Hasan Ahmed Numan
Student of Finance major.
Fox Sxhool of Business and Management, Temple University.
