September 04, 2009

Income, Taxes and some Wage Growth : What American's Need Now

Burger King and Goldman Sachs

Let's cut the crap... the way to end income concentration and restore the middle class is taxes, but it's not what you think. Instead of taxing massive corporate salaries and bonuses that are received by individuals, tax the companies giving them. Massively, for any management level salary that exceeds 20x the pay of the lowest paid worker. The second thing that absolutely has to be done is a tax CUT to companies on a scale that increases as the lowest paid worker (no distinction between hourly and salary) gets closer to making more than twice the poverty level. For a family of four.

This incentivizes good behavior, creates real wage growth and has no net negative effect on businesses because they'll get a tax cut just by doing the right thing. The stick there is scrubbing every corporate loophole and making this the only way to reduce tax burden.

I offer this as a solution to income disparity and the lack of strength in employment. If this country is to endure, it's the middle class that must expand. Keep in mind this is coming from someone who makes many multiples of the poverty line. I voted for Obama knowing that my taxes would probably go up either on earned or unearned income.

Some of you will think it's unfair that we tax higher incomes more than lower incomes. Here's the thing... a doctor in Botswanna doesn't make anything close to what a doctor in the US makes. Part of that disparity is that the American doctor was lucky enough to be born in the US. For winning the ovarian lottery, he or she gets the privilege of a prosperous career. This country is the way it is in large part because of those who came before us, who paid their taxes and created an environment where that doctor could prosper. Why shouldn't they help pay to support it for the next generation?

To put it more plainly, someone like myself has a skillset that allows us to make a very comfortable living in the US. In Bangladesh, those skills would be worthless. Being HERE, in this country at this time, affords me the opportunity to live very well. So, no, I don't have a problem supporting the country that enables me to do that.

Neither should CEO's and the other uberwealthy whose only talent was coming out from between the right pair of legs.

Posted by mcblogger at September 4, 2009 12:21 PM

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