Simmer Down Economics

No more bad town...

I just invented the answer to all our economic woes - a way to redistribute wealth in a meaningful way... and it's brilliance lies in it's simplicity. I propose a yearly compensation cap of $5,000,000 for everyone. It is an undeniable truth that anyone who is being compensated more than five million dollars in a calendar year is probably doing something either very illegal or patently un-American.

I shall call my prophecy Simmer Down Economics.

Here's how it works: If any person is compensated during a tax year a total value exceeding five million dollars, they will be brought up on Federal charges, black listed, and the standard punishment of such an instance will be a 200% tax on every dollar over five million (example: someone making $6,000,000 would subject to an immediate tax of $2,000,000, then be taxed at the standard rate for the remaining four million). That covers Americans living and paying taxes in the US, with one or more compensatory source equaling a value greater than $5,000,000. It is important to note that because the calculation is based on compensation and not actual pay, it limits other gimmies like stock options and private jets.

To cover foreign executives, any company compensating any individual in a value greater than five million dollars will be brought up on federal charges, be forced to endure a lengthy and very public flogging, be subject to potential asset seizing and be on the hook for no less than 200% of the total compensation (example: a foreign executive making $6,000,000 would cost the company hefty legal fees as well as an additional $12,000,000 in taxes).

The genius of the plan is that by forcing the richest companies to limit the amount of compensation they distribute to their top-tier employees, the companies will have these assets freed up to do any of the following: pass savings onto consumers, pay lower level employees more, or spend on capital equipment and/or research and development - all of which stimulate the economy. It's like trickle down economics, but without all the offensive math and backroom slap and tickle.

Worst case scenario? Companies still pay execs exorbitant amounts of money, and they all get taxed painfully, thus providing funding for such frivolity as education, heath care, roads... maybe paying off the National Debt. Making America better by holding the greed mongers accountable.