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State Senate Taking On Pay Gap Between CEO's and Employess

Posted April 27th, 2014 @ 4:15pm by KFBK News

Democrats in the California State Senate are looking to tackle a widening pay gap between CEO's and their employees.

New legislation would impose higher corporate taxes on companies that pay CEO's more than 100-times the average wage of their workers.

Its estimated that most get about two-hundred-80-times their pay right now - which upsets former US Labor Secretary Robert Reich. 'Now this is not only unjust but it's also bad for the economy,' says Reich. 

Reich also says there needs to be more money in the pockets of the middle class.

The California Chamber of Commerce has labeled the bill a job killer that will discourage investment.

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