I’m wondering what the legal powers of Congress would be to force salary caps on corporations. We have government mandates and investment cap rules on so many other parts of our lives, why not for the 1% to be a part of the solution instead of using an age old tactic that we all know doesn’t work; taxes.
Taxes only ever seem to hurt the middle and working class. The upper class pay good money to avoid paying even more when tax season comes around. Most multi-millionaire/billionaire moguls and bankers pay less taxes than their secretaries. What’s wrong with this picture?! Instead of a simplified tax code for businesses and workers we are stuck with bibles of codes and loops that are so complicated, it’s no surprise to see someone like President* Donald Trump never pay taxes.
It seems to me that there are 2 basic steps to bringing the balance back to the economy.
- Flatten the tax code, close the loops, and treat all income as income. Stop the special treatment of carried interest and other loopholes.
- Cap executive salaries to a reasonable limit, such as 4x or less the average salaries of their workforce. Allow room for financial incentives to exist outside of the top 1% of each corporation. I would also consider stocks, shares, land, gifts, signing bonuses, or anything else of monetary value as part of this limit. We can not have executives with $1 salaries who were given a signing bonus of $100M; that’s not how this works.
Anyone who has had a 401K, or IRA, or even an HSA plan understands there are fiscal limits. We can put only so much money into these investments. There is value in following up on a similar approach to business regulations.
I’m not saying the government should cap the companies’ profits. I’m suggesting that companies start reallocating their money. I don’t understand why corporations are spending all of their hiring capital on a handful of elbow greasers at the top when they could have more people in the field making them money.
I realize this is very strange idea that will only see push back from the hard Right, but we know trickle-down economics do not work. When you give money to the rich, they keep it. We need another way; this is just one alternative…