Maximum Income
I would like to hear opinions on how we can rationally and scientifically decide what maximum yearly income should be warranted in specific countries. I am in favor of democratically deciding to impose a maximum income, and applying a 100% tax above that maximum income. If I were to personally express a preference relevant to my own country I’d vote for linking maximum income to a basic income, where the maximum income would related by national constitution to 100 times per month the basic income.
In other words – if a basic income would be 1500 euro per month, the richest people would experience 100% income tax over an income of 150.000 euro per month. Implementation of this tax regimen should start gradually and it should be counted for all forms of income, including perks, bonuses, transnational rewards, as long as you maintain a residence in Europe (or the Netherlands). If you can prove you pay more taxes elsewhere and can prove you are a resident elsewhere you won’t pay double. In terms of gradual introduction I am thinking an initial ratio of 1000:1 vis-s-vis income tax relative to a basic income, reducing that ratio by 5% per year for a period of 20 years.
I am not interested in discussion whether or not this would “demotivate” the rich, or “this would be theft”. We have a society, society needs money to operate, we have societal debts that needs to be paid and not enough people can find work. I am only interested debating a science/mathematic/fiscally sound formula or algorithm for the implementation of such a Maximum Income.
April 30th, 2014 at 16:23
(Q) Nancy Smith Khannea Suntzu why punish productivity?
(A) Success works. If we can actually measure productivity and link it to individual achievement I am VERY MUCH in favor of rewarding that a LOT MORE than is currently the case.
Problem is that we have a destructive crowd problem. In a so-called “destructive mob” Dilemma a lot of people crowd in ever more frantic energy for an increasingly scarce good. A good example is the crowding happening on board the Titanic, or the crowding occuring in a burning building. Quite often rational management will be able to deal with such emergencies, but in practice the crowd causes more mayhem, suffering, destruction and loss of life than is strictly necessary. I am all for people being successful, but we can’t have humanity operate a herd of wildebeests pushing one another in to a river swarming with crocodiles.
Most people who currently make most money are NOT productive. I am aware that a lot of people are hopelessly enamored with the independence and prestige extreme affluence brings, but we should realise that we now live in a world where the most financially privileges are engaging in societal and economic destruction rather than contribution.
Once you affirm or deny this we can continue to discuss this. My first question to you is – what if we establish a very high ratio for a maximum income, what ratio would you consent with? 10.000:1? That would mean basic income of 1500 euro (relative to my country) would equate a maximum income of 15 million euro per month. How much “productivity” is “worth” 15 million euro per month?