Robert H. Frank says no. A wiser approach, he suggests, is to raise tax rates on the highest earners.
I agree. The motivation for limiting executive compensation is understandable. But the logistics of a true cap are problematic, and the merit of singling out executives as opposed to entertainers, athletes, and non-executive financial high-rollers is questionable.
January 8, 2009 at 12:52 am
A truly progressive tax is needed.
January 15, 2010 at 1:39 pm
I have been thinking about the issue of limiting high pay for the last few months. In September I mulled on the Web about some of the issues. Since then I’ve been rooting around looking for more material on this, which is how I came across your blog.
I (mischievously) wonder if we could compromise: We won’t put a cap, but use a progressive tax, which will hit 100% for all income above a certain level