So I was bouncing this idea around in my head for awhile. Originally I was thinking of a maximum salary. Like if we said you can only have a maximum income of $1M and every dollar after that gets taxed at 90% or something. But when I watched this video, “Inequality for All” which is about the growing salary gap in the US.
Now I am thinking about salary caps for corporations. We have salary caps in sports to prevent the wealthy teams from obtaining all the best players. To keep things interesting the league owners know that every team has to have a shot at winning.
What if we did the same thing with corporations and had salary caps. Sure you could pay the CEO 10 million dollars but how many actual production workers would you need to forego? What would the trade off be?
One thing that leaps to mind is they would off shore all the jobs and focus the wealth in the hands of the senior executives, but how can we cap salaries? Can the government say that the highest paid earners should only earn 5X the lowest paid person? What about 10? How about 100? How about 331 times as much?