This will also do zero to fix the problem of income inequality, its just an extra tax. No large national or multinational company is going to adjust CEO pay to avoid a tiny tax increase in 1 city even if they were right on the borderline of the pay ratio.
What’s also funny is business will probably adjust this tax into their pricing, so when the city buys directly from them at a slightly higher price they will still brag about the extra tax revenue. But really the tax revenue is canceled out by the new price.
The fact of the matter is historically speaking highest level managers and executives had salaries that were much lower multiples of their employees salaries than today. This does not mean they were paid less, it means that the average worker was compensated better for their labor. I think limiting the salaries is a decent start but we really need to raise wages for the average American across all fields, not just the lowest paying.
This is a very long research article every American should read:
But more important, I wish the average American would wake up and realize that they are getting screwed, that we don’t live in a free market, and you are probably making half of what you should be.