The attempt by the government to punish bankers by limiting salaries is clearly not working. A simple solution would be a 90% marginal tax rate on income over some reasonable amount – say $1 or 2 million. That should pretty well eliminate the interest in making huge salaries. As a result of the savings in executive pay, companies would have more money to invest in research, new facilities, hiring more workers, increasing worker pay, paying dividends, etc. Since the tax rate would apply to all high earners, there would be no incentive to flee from one job to another in hopes of making more. Increasing management stability would probably be a good thing. Also, with greed moderated, more people might devote themselves to areas they were really interested in rather than just those where they could make a killing.
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