Target: Senate Majority Leader Harry Reid
Goal: Repeal tax-deduction for executive compensation
In 1993, Congress attempted to limit the tax deductions large corporations could claim for executive pay. That law created a loophole, however, allowing unlimited write-offs for “performance-based compensation.” The loophole has resulted in the rapid growth of “performance-based compensation,” and, according to the Economic Policy Institute, costs the government an estimated $7.5 billion a year.
This law is also one of the many structural injustices in our economic system contributing to the massive pay gap between corporate executives and the average American worker: while CEO’s earned 42 times the income of the average worker in 1980, in 2012 they earned 354 times as much, according to the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). Shocking by itself, it’s even more outrageous when one considers that median household incomes have fallen over the last decade.
The Senate has introduced a bill that would rectify this injustice. Entitled the “Stop Subsidizing Multimillion Dollar Corporate Bonuses Act”, the bill would limit the deduction per employee to one million dollars and broaden the scope of companies covered by the previous law. Please urge the Senate to pass this important bill.
Dear Senator Reid,
I am writing to express my support for the “Stop Subsidizing Multimillion Dollar Corporate Bonuses Act”. In these times of economic hardship, with over one hundred million Americans on food stamps and sequestration cuts hampering the administration of numerous vital programs, it is unconscionable that our government is subsidizing the richest and most successful in our nation. I ask that you use your leadership as Majority Leader and President of the United States Senate, to see that this important law is passed.
Under the current law, the United States is losing 7.5 billion dollars a year to this ridiculous program. That money would be better spent on almost anything. Furthermore, the current law is one of the many laws, tax code provisions, and financial regulations contributing to the economic gulf between the richest of the rich and the rest of the nation. Such government-sponsored social and economic inequality is inherently dangerous to our nation, as it leads to the creation of an oligarchic ruling class with undue influence on politics and subverts our core principles of equal protection and representative government. Please see to it that this importance legislation is passed.
[Your Name Here]
Photo Credit: 2bgr8 via Wikimedia Commons