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Maximum wage?
Topic Started: Sep 27 2011, 10:00 PM (788 Views)
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Flashy Thing!

Minimum wages exist to prevent employers from inadequately paying their employees but should their be a cap (maximum wage) on income? Is there a point were it can be determined that a person has enough money? What justification can be used to say that "X" amount of income is the most that a person can make?

I definitely feel like there should be some way to curtail the income of select people, the ones making 10s of millions of dollars a year for example. I'm not sure yet on what would constitute too much money but i do feel like there is a point were greed comes into play. People don't need private planes, chauffeur drivers, they don't need the home large enough to house 15 but only a third of that amount lives there, and they don't need a private island.

If extremely rich people want to live in society then they're going to have to take a pay cut or in some way reinvest that money into the community/nation. Live for ever as an average joe or live a short time as royalty?
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Optimus Banana
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Well you have to take into account businesses that are self owned where the person invests the money earned into equipment and other things. I dont really mind rich people besides the ones who are like multi-TRILLIONAIRES. I kinda think they are just taking money out of society and causing inflation because money has to printed when there isn't enough to go around.
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Meowth
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It wouldn't work, the person who owns the company would still get money and get rich, as well as if they wanted to give it to board members, they could just give it as bonuses or through other means that aren't wages.

There are ways around a maximum wage.
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Daniel
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For example, if he/she wanted to get around Maximum Wage, he could just give the guy money and say it was a gift they goverment can not resrict that and have no right to.
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Crazy Awesome Legend

The simple solution to this is to tax rich people more. Which I think is what's done in most countries nowadays anyway. The problem is tax havens. Places where people can deposit their money and get out of paying the tax for it. However I think that I read somewhere that things are being done about such things.

To be honest, if people are earning more then they're also paying more. Not just through taxes but expenditures too. So the money they earn is still being put back into the economy. Freezing that large amount of cash in times of a financial crisis like we have now seems like a bit of a silly idea.


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lunar2
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i personally believe the income tax should be replaced with a wealth tax. if you have a net worth over a certain amount, you have to pay a small percentage of it into a tax fund, that then gets divided up among federal, state, and local governments. that wealth tax would be the only tax. no income, sales, or property taxes (besides that one).

and then, of course, we need things like a balanced budget amendment to the federal and state constitutions, as well as laws prohibiting expenses for education, law enforcement, emergency services, healthcare, and infrastructure from falling below a certain percentage of the budget.

beyond that, the idea of a maximum wage is just ridiculous. what, they're going to throw you in jail because your chain of restaurants was unexpectedly successful, or because you invented a cheap, clean burning, synthetic gasoline that can run in existing engines? you can't punish success, or else people will stop succeeding, and the world will fall apart at the seems.
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Rockman
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To the original post, the easiest way to accomplish what you propose, is to move to China. You'd create a cap on society so that no one can sit in between the cap, and business owners would still be billionaires regardless. Also, some jobs are so difficult, that putting a cap on their wage wouldn't pay for the difficulties that they encounter during their job, and thus the job would cease to exist.
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Flashy Thing!

Well i made this topic because i was asked this question in school and i was curious about what you guys had to say. The few people that actually spoke up in class expressed a slightly different opinion. In a sense they want maximum wages to cut back on excessive pay but know that maximum wages just won't work.

The main topic was about CEO pay (including bonuses/stock options/long term bla bla bla). Most people came to the conclusion that a few CEOs are significantly overpaid and that we need to find a way to limit their pay. This is basically how the idea of maximum wages came up in class.
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Cal
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Jobs/Careers are based on so many different things.

Demand for job, Difficulty of job, Requirements for job, etc.

To answer the OP, I doubt it would work. The obvious example though is to tax everyone the same amount, and the richer obviously end up paying in more money.


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