Your Custom Text Here
Many Americans, especially progressives, believe that the income gap between the haves and the have nots is too large.
Progressives see income inequality as a flaw in capitalism and a reason to transform the economy to socialism. In the name of “equity,” the Biden Administration and Democrats in Congress are seeking to increase taxes on those who are wealthy and add to government entitlements for those who are not. READ MORE
The federal deficit hit an all time high of over $28 trillion in March 2021. Unlike the federal government, however, nearly all states are constitutionally required to have a balanced budget and depend on multiple sources of tax revenue to fund operations. No two state tax structures are exactly alike, and in some parts of the country, Americans pay fewer taxes than in others.
One of the primary revenue sources for most states is income tax. Depending on the state, personal income tax can account for over one-third of overall tax revenue — a tax burden shouldered exclusively by workers and investors. There are, however, eight states that do not levy any personal income taxes, and one additional state that only taxes income from interest and dividends. READ MORE
Researchers at Vanderbilt University recently studied patterns of people moving from place to place during the pandemic. They found a significant percentage of people moved from larger cities to smaller cities, but the reasons for relocating were different depending on their earnings.
When the pandemic hit last year, Mack McKelvey was renting a two-bedroom apartment in Manhattan. She runs a marketing firm, and before COVID-19, it made sense for her to be in New York. But working remotely, her location didn’t matter. So in September, she looked for a place in Vermont. READ MORE
More than half of 100 companies with the lowest median employee wages in the S&P 500 Index boosted CEO pay by changing the rules for assessing executive performance during the COVID-19 pandemic, according to a report by a left-leaning policy group published on Tuesday.
The report from the Institute for Policy Studies found that 51 of these 100 companies, including beverage and snack maker Coca-Cola Co, cruise ship operator Carnival Corp and fast food corporation Yum Brands Inc, reduced median worker pay by 2% to $28,187 on average in 2020 compared to 2019, even as the median compensation for their CEOs rose 29% to $15.3 million. READ MORE
The United States Department of Labor (DOL) announced on Wednesday that it is withdrawing the independent contractor rule that passed under the Trump administration.
The rule was slated to take effect on March 8. However, the Biden administration asked federal agencies to freeze pending regulations to give new leaders time to review them. The final rule, which was considered a more employer-friendly interpretation of employee status under the Fair Labor Standards Act than what was applied during the Obama administration, adopted an “economic reality” test for determining which workers qualify as independent contractors or employees. The rule primarily considered two “core factors” and three “guidepost factors” for determining if the worker is economically dependent. READ MORE
MSNBC anchor Stephanie Ruhle was slammed Monday for her take on how government unemployment benefits are affecting the U.S. labor force, arguing that the real question is why aren't employers offering workers higher wages.
In response to an underwhelming April jobs report, some liberals are pushing back against the notion that unemployment benefits are discouraging a return to the workforce.
"Why is it - that the unemployment benefits are too generous rather than the pay offered by employers too low?" Ruhle asked Sunday. "Pay more $ = find more workers [sic] If margins are so thin, that you cannot increase pay without passing it through/losing customers = your biz model doesn’t work." READ MORE
Restaurants are struggling to hire workers, so some, including Chipotle, are trying to sweeten the pot with higher pay and bigger career opportunities.
Chipotle is increasing the pay of its restaurant workers to an average of $15 per hour, the chain announced Monday. Some employees will become eligible to make a six-figure salary after just a few years on the job. READ MORE
U.S. Rep. Patrick McHenry (R-NC) introduced legislation that would include the gig workforce in the category of workers who can benefit from equity compensation.
The Gig Worker Equity Compensation Act (H.R. 2990) would help gig workers share in the economic resurgence while preserving their flexibility and independence. READ MORE
Sen. Ben Sasse announced he would introduce legislation that would reallocate expanded unemployment benefits into signing bonus payments for new hires, after this week’s disappointing jobs report.
Sasse said the bill would convert the pandemic-expanded federal unemployment benefit, which is currently up to $300 per week, into a two-month signing bonus "equal to 101 percent of their current unemployment payment." READ MORE
The Biden Administration has reportedly proposed significant changes to the capital gains tax, aiming to target the wealthiest Americans to help fund his historic aid programs.
If the current proposal goes into effect, it will have an impact on startup employees who aren’t (yet) wealthy. And it’s unlikely the Biden Administration has considered the consequences, because many of these employees aren’t yet in the highest tax bracket. But startup employees need to pay close attention to these changes when planning what to do with their stock options. READ MORE
There already has been a lot of discussion about the elements anticipated to be part of President Joe Biden’s American Families Plan, including some of the tax increases being considered to pay for the proposed “human infrastructure” benefits. One question largely undiscussed to date is to what extent will proposals affecting executive compensation be utilized to help offset the spending provisions of the American Families Plan? READ MORE
Under amendments to the Illinois Business Corporation Act and the Illinois Equal Pay Act, certain corporations will be required, beginning in 2023 and continuing thereafter, to report data concerning the gender, race, and ethnicity makeup of their workforces, along with information about their compensation practices and efforts to comply with equal pay laws. Much of this information will become public, and failure to report the necessary information can lead to significant penalties. READ MORE
Some companies adjust pay depending on where employees live, raising the question of whether they’ll change employees’ salaries now that working remotely is becoming more common.
In a new survey about work-from-home policies, 4.3% of companies who responded said they would reduce employee’s cash compensation if they moved to a lower-cost geographic area, while 56.5% said they wouldn’t, according to the executive compensation consultancy Pearl Meyer. About a quarter of respondents said that it would depend on the individual situation and about 14% said they’re unsure. READ MORE
Money makes the world go round, a truth as reliable as death and taxes. Companies often lure and retain high performing employees, particularly executives, through promises of incentive compensation. Sophisticated employees seek certainty through a written agreement specifying their compensation package, while employers often insist on maintaining a large degree of discretion over performance-based compensation. This tension frequently results in a written agreement that contains language so broad that its enforceability becomes questionable. READ MORE
The topic of compensation has historically been a delicate one that has left many people — especially startup employees — wondering just what drives what can feel like random decisions around pay and equity.
Last June, software engineers (and housemates) Miles Hobby and Geoffrey Tisserand set about trying to solve the problem for companies by developing a data-driven platform that aims to help companies structure their compensation plans and transparently communicate them to candidates. READ MORE
Montana Gov. Greg Gianforte announced Tuesday the state will end its participation next month in the federal unemployment program, as the state struggles with a worker shortage.
Beginning June 27, unemployed workers in the state will no longer receive $300 in extra weekly benefits, forgoing payments that were approved through Sept. 6. READ MORE
It will take some time for the full scale and scope of President Biden’s recent executive order directing federal contractors to pay a $15 minimum wage for their workers starting next year to be seen.
Biden issued an executive order on April 27 that builds on one from President Obama in February 2014, which required federal contractors to pay their workers $10.10 per hour. Currently, the minimum wage for workers on federal contracts is $10.95 per hour and the tipped minimum wage is $7.65 per hour. READ MORE
Various economic indicators are surpassing their pre-pandemic highs as stimulus and reopening drive the country toward a full recovery.
US wages are the latest to rebound.
Salaries and hourly wages finally leaped above their February 2020 peak in March 2021, according to the Bureau of Economic Analysis. Employee payment across the country rose to a seasonally adjusted annual rate of $9.78 trillion from $9.67 trillion, marking a new record high and an eleventh consecutive climb. READ MORE
On a Tuesday afternoon last June, Humberto was yanking old wires from the walls of a middle school in suburban Birmingham, Alabama, when his cellphone rang.
Humberto’s wife, who had just returned from her weekly trip to the grocery store, was on the line. “Our account is negative,” she said. READ MORE
At the start of the pandemic, software engineer and aspiring CIO Kerry Fields was laid off. In an already challenging time, she unexpectedly had to begin searching for work during one of the biggest job crises of the past several decades. She poured over job boards, networked virtually, worked with mentors, and took every opportunity to continue building her portfolio and professional skills. She also applied for upwards of 100 jobs. READ MORE