Rep. Barbara Lee

Rep. Barbara Lee (Photo:

We’re now a decade and a half into the 21st Century and the notion that our nation’s runaway inequality is going to get any better anytime soon via the “genius of the market” has been shown to be utter nonsense. To the contrary, the incomes of the nation’s ruling class continue to skyrocket at such an astounding rate that the idea of the U.S. as a “middle class society” has come to seem quaint.

Meanwhile, the New York Times reports that congressional Republicans can’t get their act together to do much of anything.

Of course, it doesn’t have to be this way. If a majority of the members of Congress possessed a modicum of courage and common sense, they’d be rushing through this bill as soon as possible.

As Congresswoman Barbara S. Lee of California explained here about the Income Equity Act of 2015 that she introduced last week:

“Few realize that CEO bonuses and ‘performance pay’ are subsidized by the American people. Corporations are given major tax breaks for providing exorbitant compensation.

Surely we can agree that corporations don’t need taxpayers to subsidize massive CEO pay?—?pay that’s grown nearly 1000 percent since 1978.

In America, corporations and executives are playing with a deck stacked against hardworking families.

And the Republican response to this profound income inequality has been a collective yawn.

It’s wrong for any business to keep workers in poverty while padding CEO’s wallets.

It’s even worse that some of these same businesses take huge tax deductions for millions in bonuses.

Clearly, our tax code is not designed to work for all Americans?—?just the select few.

My bill, the Income Equity Act, prohibits employers from taking tax deductions for excessive compensation—defined as any pay more than 25 times that of the company’s median wage worker or $500,000.

Congress should get to work for hardworking families, not millionaires and billionaires that want to get even richer on the backs of taxpayers.”

Amen, Congresswoman.


The good people at Too Much Online – a newsletter put out by the group have an interesting and provocative idea that would seem guaranteed to improve the image of  America’s nonprofit community (which has been suffering from depressed contributions of late) and help combat the nation’s runaway inequality: cap nonprofit CEO salaries.

“Jack Gerard, the CEO of the American Petroleum Institute, pulled down $13.3 million in compensation last year. Yet his Institute operates as a ‘nonprofit’ — and reaps a variety of tax benefits from that status. In effect, average Americans are subsidizing this lobbying giant for the fossil fuels industry. Back in 1998, a member of Congress from New Jersey, Robert Menendez, introduced legislation to cap the salary that nonprofit executives could grab at no more than the salaries of U.S. cabinet secretaries, currently just under $200,000. That legislation never moved. But economist Dean Baker recently resurrected the notion of limiting the executive pay nonprofits could dish out and still qualify for nonprofit status. That limit could be tied to the ratio between a nonprofit’s CEO and typical worker pay. The 2010 Dodd-Frank Act requires for-profit corporations to disclose this ratio. Menendez introduced this disclosure mandate provision.”

Sounds like a good idea to us. As economist Dean Baker notes in the column cited above (which discusses the idea of capping the pay of university presidents):

“The universities will also complain that they cannot get qualified people for $400,000 a year. This one should invite a healthy dose of ridicule. If we can get qualified people to run the Defense Department and Department of Health and Human Services for half this amount, perhaps their school is not the sort of institution that deserves taxpayer support if it can’t find anyone willing to make the sacrifice of running the place for twice the pay of a cabinet secretary.

Free market economics is so much fun!”


The maddening data on wealth inequality in America have now gotten so ridiculously out of hand that the headline for this post really does sum up what ought to be the single, defining issue in today’s election. For confirmation, check out the following amazing graphic from the good people at

Wealth inequality


The good folks at continue to do a great job of documenting America’s obscene and metastasizing wealth and income gaps. This week, in their online newsletter Too Much, they highlight as fascinating comparison between French and U.S. households when it comes to wealth. As you can see, Americans top the French when it comes to average wealth because the rich here are so much richer and all of their holdings gets factored in. When one looks at median wealth however (i.e. the wealth of the most typical adult) the French leave us in la poussière.  This graphic from the Too Much website tells the grim story.

US France wealth stats