The US city of Portland in Oregon will impose a tax on public companies which have CEO - worker income ratios of greater than 100 - 1 . The tax , which was passed last year , will increase corporate income tax by 10 % for a higher than 100 - 1 ratio and by 25 % for a higher than 100 - 1 ratio . It is estimated that the tax will raise $ 2.5 m annually from January 2018 . The money will be used to fund schemes for homeless people . Approximately 540 publicly traded companies are currently subject to business income tax in the city .
The US city of Portland in Oregon will impose a tax on public companies which have CEO-worker pay ratios of greater than 100-1. The tax, which was passed last week, will increase corporate income tax by 10% for a higher than 100-1 ratio and by 25% for a higher than 250-1 ratio. It is estimated that the tax will raise $2.5m annually from January 2018. The money will be used to fund schemes for homeless people. Approximately 540 publicly traded companies are currently subject to business income tax in the city.