Should Congress put a cap on executive pay?

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.

2 thoughts on “Should Congress put a cap on executive pay?

  1. 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

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