The city of Portland, Oregon, is imposing a surtax on companies whose CEOs earn more than 100 times the median pay of their lower-wage workers.
Companies will see a 10 percent increase on their tax rate if the CEO makes 100 times the average employee and a 25 percent increase if they make 250 times the average salary, The New York Times reported.
The new law, which passed 3-1 in the city council, is estimated to generate about $2.5 to $3.5 million per year, which will be used to address income inequality on a local level.
On "Your World" today, Portland City Commissioner Steve Novick said that aside from climate change, extreme economic inequality is the greatest problem of our time.
"The richest one percent - and especially the richest one-tenth of one percent - have far more income and wealth and power than they did 40 years ago," Novick said. "And it's been economically destabilizing, socially destabilizing, politically destabilizing."
Neil Cavuto countered that this will just lead to businesses leaving Portland to cities with more friendly tax rates.
He said that CEO pay should be decided by companies, and it's not up the city council's to attempt to influence it with taxes.
Watch more above, and let us know what you think in the comments.

Mr. Novick's never produced a thing in his life. He's a born regulator:
Novick is an attorney and former U.S. Department of Justice litigator. He spent nearly ten years arguing on behalf of the Environmental Protection Agency (EPA), culminating in the Love Canal case in upstate New York, on which he served as lead counsel.[7] Returning to Oregon, Novick worked as policy director for Tom Bruggere's unsuccessful 1996 Senate bid. He then served as chief of staff to the Democrats in the Oregon State Senate from 1997 to 1999.
Subsequently, he was Executive Director of the Center for Constructive Citizen Action, which spearheaded the fight against Bill Sizemore's Measure 91, which would have cut the State budget for schools, health care and public safety by more than 20%.[citation needed]
In 2002, Novick was policy director for Oregon Governor Ted Kulongoski in his first, successful campaign for the governorship. From 2004 to 2006, he worked for Citizens for Oregon's Future, an organization dedicated to providing taxpayers useful, reliable information on tax and budget issues. In 2005, Novick developed a "balance the state budget" classroom exercise for high school students, which was used by social studies teachers in CreswellSpringfieldSalem and Portland.[citation needed]
Beginning in 1999, Novick turned his attention to the Oregon Lottery's payments to retailers, which he contended were illegally high. He and other education advocates brought a lawsuit challenging the lottery's payment, the lawsuit was successful at the Oregon Court of Appeals.[8] However, the Oregon Supreme Court overturned the decision, declaring the Lottery's payments legal.[9]