Sanders prepares plan to clamp down on corporate tax avoidance.
Bernie Sanders’ proposed tax plan would levy tax on companies whose CEOs earn more than 50 times their average employee and will result in companies like Apple and Amazon paying more.
Under Sen. Sanders’ proposal companies whose CEO makes more than 50 times the average employee’s salary would have an additional 2% tax levied on them. Apple’s effective tax rate was 18.3% on taxable income of $72.9 billion. Bumping that up another 2% would have meant an additional $1.4 billion payout.
In 2018, Amazon paid zero federal income tax on billions of dollars of profit. In the UK, Amazon paid £14.7m in UK corporation tax despite reporting sales of £2.3bn.
Corporate tax loopholes achieved though lobbying has been very affective in undermining tax laws. It is assigned to be a major cause of budget deficit and austerity in many Western countries.
Similar proposals are under draft by leading left wing organisations in the UK.