musings on salary cap

I had already considered the need for a salary cap, as mentioned in some older blogs. The fact that Corbyn and his team have hit on this, as a solution to inequity, has caused me to commit sume of my own musings to blogdom.

It’s not intended as a fully thought-out plan. Just a contribution.

In an era when we have marriages and partnership’s, no longer conforming to the classical concept of a family unit, it is time to re-evaluate income tax structure.
We no longer have the male breadwinner and the stay at home housewife, so it’s time to treat all citizens as stand-alone taxpayers.
The family allowance was to encourage the creation of a stronger nation, at a time when workers and soldiers were of importance.
This no longer applies, as technology is increasingly replacing muscle power.
In fact, the problem of a geometrically increasing overpopulation demands that we should take measures to gently resist it.
Everybody is entitled to receive consideration from the whole of Society and to return it in equal measure.
In terms of taxation, this means everyone legally defined as an adult (of sufficiently sound mind and body to make a useful contribution to Society *), should be remunerated in proportion to their contribution to Society. This can not be decided by committee and must relate to market forces. The only problem with market forces is that they are corrupted by monopolies and cartels.
The only way to defeat the conniving of bureaucratic committee’s and avaricious cartels etc. is to limit the range of remuneration (a cap on income).
The bottom of the range must be a citizen’s pension, for those unable to contribute to any useful extent. This should cover the cost of basic needs, which humanity insists should include a modicum of joie de vivre. (Gandhi is supposed to have said that you can judge how a nation treats its people by how it treats its animals.. joie de vivre).
The next rung must be to reward those in employment that can, or would be done, by anyone. I would say that this would include employment such as shop assistant, call centre operative, porter etc. but Society should decide.
Society would also have to decide how many tiers of employment there should be and the appropriate pay increments.
First Society needs to decide on the top of the range of pay and this will be the real problem.
For me, any person’s income must relate to how much greater his, or her, contribution to Society is, than someone on the lowest rung.
Consider a few of the, at present, highest paid.
{Don’t quibble about the exact values being quoted, they are extremely rough guestimates but carry the essence of the position being presented}
A premier league footballer, for instance: In my lifetime, such a salary has gone from 5x basic wage, to 500 x  basic wage. This is a reflection of the joie de vivre that they contribute, to a much larger number of people, but also to their political muscle, or market forces.
How about an M.P.? Their basic pay is only about 4x basic wage. Add in allowances, golden pensions etc. and it’s probably nearer 10 x basic wage.
A banker? their pay is just obscene, so skip it for a minute.
A C.E.O. of a multi-national? Paid millions with some paid hundreds of millions. Again, skip for a minute.
A pop-star? Internationally known pop-stars rake in more than banker’s, although they do add joie de vivre to millions. Only problem is they decide how much each person pays for it, so effectively in a monopoly position.

How do you decide their worth?
Few have the skills of Wayne Rooney but he does give pleasure to many, for a few hours, each week, of the football season.
On the other hand, how does he compare to a G.P.? A person with skills, years of training, making a huge difference to the lives of several thousand, as and when needed.
I think most would say that a G.P. earns his salary and possibly more.
This pay is about 5x basic wage.
So does Wayne Rooney contribute 100 x more to Society than a G.P.?
It seems to depend on replaceability and the amount of positive interaction with other people.
It’s all very subjective and would need to be put to a public vote.
Simplest would be rate to these jobs in terms of swapsies.
How many G.P.’s for one teacher, road sweeper, nurse, surgeon, M.P., banker, CEO, farmer, shepherd, coalminer, etc.?
At the end of the exercise, we take the figure, which is the largest multiple of the basic wage.
Let’s say it’s 100 x basic wage.
We set a tax system which starts with zero tax for those on 2 x basic wage and goes up to 100% at 101 x basic wage (a cap). That’s not a mistake. If you are being paid 101 x basic wage, you can reduce your tax rate to say 50% (whatever the top rate is), by a simple tax donation of the excess. It would be up to the individual to ensure that they don’t get caught cheating, e.g. by taking payment in kind.
The last would require an end to all bonuses and allowances for business expenses. No farmer’s Range Rovers, no business man’s entertainment in strip club’s, no private jets etc. for PM’s and CEO’s.
Some leeway might be excused for accidental oversight’s but only upto 1 x basic wage.

This is just a skeleton view, which those capable of deeper thought could flesh out and those on obscene pay would want thrown out.

Some attention has to be paid to those unable to make a significant contribution. Ignoring young entrepreneur’s and the likes of Bruce Forsyth, most non-adults, disabled and elderly would qualify for the basic wage.
Now, another problem arises. Ever since “Cathy come home”, popular support has been in favour of supporting the unmarried Mother, or “single parent”. Previously, “having a bastard” was almost a sin and so Cathy had been cast out by Society. In order to take the moral sting out of the situation, the “bastard” became “the innocent child, who didn’t ask to be born”. Abortion was still illegal and back street abortions (the film “Alfie”) were morally repugnant.
It became social mores that all children should be supported by the State, if the errant father couldn’t be hunted down etc.
The CSA apparently does a wonderful job of persecuting and prosecuting those fathers, who are happy and willing to support their progeny but offer little service in terms of the feckless and prolific, who service equally feckless young women who see State support for single parents as a means of avoiding responsibility for their own lives.
If each child received the minimum wage, there would appear to be a problem but only if their single parent had control of it. Instead, each parent could be given control of one child’s wage, whilst the wages of any further children would go to the local Council’s care fund, giving them a co-parental duty of care, when needed..
A single parent could have more than one child but would have to treat the Council care officer as a partner, supporting when needed, or stepping in, if the parent was unable to cope.
Families, who were able to fund their progeny, from their own income, would merely need to show it through regular school attendance etc. (i.e. by not becoming a cause of concern to local authorities).
Errant father’s could still be pursued by the CSA but, on the assumption that they were on min wage, could be conscripted into some form of Community support…. depends on what could be made to work!

Businesses would also need to be capped in some form, perhaps in terms of the number of subsidiaries, or divisions, or partnerships. No one person can usefully be said to control hundred’s of diverse businesses, in diverse locations operating in various fields of commerce.
In any work group, you have one leader, an aide and four or five co-workers. Any bigger group has non-contributing members, or a clique working in opposition to the leader. The leader of a group can only really oversee about 30 people. This is, co-incidentally, a typical teacher’s class size. Taking this further, in school terms, each faculty has upto 9 teachers, with some heads of Department, under the head of Faculty. The headteacher may have a group of Assisstant Headteacher, Deputy Head teacher and Senior teacher’s, each overseeing a few faculties, pastoral heads (one for each year group, with 6/7 form teachers). Essentially groups of six.
Any boardroom, committee, cabinet etc., with more than six people, effectively has a load of makeweights (and they know it).
Continuing with the Secondary school model, any business with more than about 1200 (a cap) shop floor employee’s, is too large and should be split up, under a new tier of management. However, no new tier should coninequity trol businesses with no direct link.
No single person, or group of persons, should own so many businesses that the hierarchical salary structure takes their pay above the income cap for individuals.
Obviously businesses can hire very clever people, who can invent ways and arguments to try and circumvent such control but the spirit of the cap

Advertisements

Tags: , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: