Sanders floats tax on big firms to pay livable wage

Sen. Bernie Sanders, IVt., will soon introduce legislation that would require large employers like Amazon, Walmart and McDonald’s to fully cover the cost of food stamps, public housing, Medicaid and other federal assistance received by their employees.

Sanders said the goal is to force corporations to pay a living wage and curb $150 billion in taxpayer dollars that go to funding federal assistance programs for low-wage workers each year.

The bill, which Sanders plans to introduce in the Senate on Sept. 5, would impose a 100 percent tax on government benefits received by workers at companies with 500 or more employees.

For example, if an Amazon employee receives $300 in food stamps, Amazon would be taxed $300.

“At a time of massive wealth and income inequality, the gap between the very rich and everyone else continues to grow wider,” Sanders said.

Labor groups say that gap is pronounced at the nation’s largest — and most profitable — companies, including Walmart, which has 2.2 million workers, and Amazon, which employs more than 575,000.

Public records obtained by the New Food Economy, a nonprofit news organization, show that thousands of Amazon employees rely on the government’s Supplemental Nutritional Assistance Program to make ends meet.

As many as one in three Amazon employees in Arizona — and about 1 in 10 in Pennsylvania and Ohio — receive food stamps, according to an April report by the New Food Economy, based in New York.

Amazon spokeswoman Melanie Etches said the figures were “misleading because they include people who only worked for Amazon for a short period of time and/or who chose to work part-time,” she said in a statement. “We have hundreds of full-time roles available, however, some prefer part-time for the flexibility or other personal reasons.”

Sanders’ bill would be an extension of a petition he started on Tuesday calling on the world’s richest man, Amazon founder Jeff Bezos, to pay workers a living wage and to improve working conditions at Amazon warehouses. As of Thursday morning, it had 105,000 signatures.

Bezos also owns The Washington Post.

“While Mr. Bezos is the most egregious example, the Walton family of Walmart and many other billionaire-owned profitable corporations also enrich themselves off taxpayer assistance while paying their workers poverty-level wages,” Sanders said.

Representatives for Walmart did not respond to requests for comment.

Etches, of Amazon, said the company had created more than 130,000 new jobs “with highly competitive pay and full benefits” in the last year.

Amazon reported profit of $3.03 billion last year.

TIMOTHY FADEK/BLOOMBERG NEWS A bill would impose a tax on federal benefits used by workers at firms of 500 or more.