Swiss support rises for reduced executive pay

I came across this headline tonight, and with arguments raging on both sides about income inequality I thought it was a relevant addition to the conversation.

According to the article, more traction is gaining for the "1:12" ratio:

Hoping to see the same kind of backlash that in March saw Swiss voters back a ban on golden handshakes in the business world, the left-wing campaigners behind the "1:12" initiative are working round the clock ahead of the November 24th plebiscite.

The 1:12 label refers to the ratio between the lowest and highest salaries in companies, which the referendum spearheaded by the youth wing of the Swiss Socialist Party would lay down in the law.

The Local

Now, I haven't really heard of this idea being floated in American circles personally. I think most Americans would consider this a very socialist move. It is being opposed without much success:

The 1:12 proposal is opposed fiercely by the Swiss business world and the right and centre of the political spectrum, and had been expected to fall flat.

But a poll commissioned by Switzerland's public broadcaster SSR, released at the end of last week, showed that supporters and opponents on 44 percent each

Do you think Americans would ever consider something like this? If a CEO wanted to triple his paycheck, he'd have to raise his lowest paid employee by three times as well. What say you ATS?

I think of this as the "Ben and Jerry's" pay model, and I think it's brilliant; I would do it both for public and private pay. With government, we could make it mandatory across the board, and in effect (slightly) reduce the plundering of our treasury by our elected officials. With the private sector, I would tie it in with income tax reform as an incentive. For example, we could establish two flat income tax rates for business. If a company chooses to follow this model, they would pay the lower flat tax... if they choose not to follow this model, they can pay the higher flat tax. In theory at least, the company using the 12:1 ratio would be paying their employees a fair wage and keeping them off government doles, thus helping everyone in the economy.

In my ideal income tax reform, there would be NO TAX on earned income -- as in the person who goes out and actually works for that income -- nor any VAT/national sales tax. We own our labor! However, unearned income would be taxed (usually called "capital gains," to obscure the fact that people working their butts off are charged a higher tax rate for their sweat and labor than those who make a profit off of stocks, bonds, dividends, interest, etc.). We already pay taxes every time we purchase something, as the company includes their tax expenses in the cost of the product. As it is, we are being taxed multiple times on the same dollars.

I believe that this would do wonders for our economy long-term. I'm so glad you posted it

Well my 2cents - sounds like it might be a good fit.
CEO's - imo- have never earned wut they earn - in other words I have never heard a ceo decision making a ton of money for any one other than the boards and a few downlines and stock holders (occasionally).
SO hope it works for 'em - maybe have a domino affect.