Corporations with high principal executive officer additional tax imposed to median worker pay ratios, and companies disqualified from receiving state subsidies and grants.

The bill proposes that corporations with a significant pay gap between their top executive and their median worker will face an additional tax. Additionally, these companies would be barred from receiving state subsidies and grants, aiming to encourage fairer pay practices.

Supporters of the bill argue that it promotes income equality and holds corporations accountable for their wage practices. They believe that by imposing a tax on companies with high executive pay ratios, it will incentivize fairer compensation for all workers, ultimately benefiting the economy and society as a whole.

Critics of the bill contend that it could discourage businesses from operating in Minnesota, as the additional tax and loss of state subsidies may deter investment. They argue that this could lead to job losses and hinder economic growth, as companies may seek to relocate to states with more favorable tax policies.