Sarah Anderson

Sarah Anderson is the director of the the Institute for Policy Studies' Global Economy Project, and also is the lead author on the Institute’s annual executive compensation report

Recent Articles

Why Supersized CEO Pay Is the Worst—in Three Charts

Flickr/seadigs
Flickr/seadigs A t the Institute for Policy Studies, we’ve tallied the top 25 highest-paid CEOs for each of the past 20 years. That’s a total of 500 richly rewarded executives—each one of whom made more in a week than average workers could make in a year. We’re told CEOs deserve these massive rewards because they add exceptional “value” to their businesses. They’re getting “paid for performance.” Really? Hmm. Let’s consult the numbers. Institute for Policy Studies Let’s start with the firms that led our nation into financial crisis. Of the 500 places on our annual top-paid lists, 112 are filled by Wall Street CEOs who drove their companies to bankruptcy or bailout in 2008. Richard Fuld of Lehman Brothers made the top 25 highest-paid list for eight consecutive years until his firm’s bankruptcy precipitated the financial crisis. And how about CEOs who end up getting fired? No one could possibly consider them “high performers.” Yet fired CEOs make up another 39 names on the highest-paid...

Happy Birthday, Dear Income Tax

Five lessons for progressives from our first century of income taxes. 

flickr/jpconstantineau
flickr/jpconstantineau I n February 1913, exactly a century ago, the Sixteenth Amendment gave Congress a constitutional green light to levy a federal tax on income. Later that same year, lawmakers made good on that opportunity. An income tax has been part of the federal tax code ever since. So what can we learn, as progressives, from this first century of income taxation? Lesson One Steeply graduated income tax rates can help societies do big things. A half-century ago, America’s federal income tax rates rose steadily—and quite steeply—by income level, with 24 tax brackets in all. On income roughly between $32,000 and $64,000, in today’s dollars, couples in the 1950s faced a 22 percent tax rate. On income that today would equal between $500,000 and $600,000, affluent Americans faced a tax rate of 65 percent. The highest 1950s tax rate, 91 percent, fell on annual income that would today exceed $3.2 million. Today, o ur federal tax rates rise much less steeply. The current top rate? The...