posted on Oct, 25 2013 @ 06:16 AM
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