Since 2003 Major League baseball has instituted a luxury tax to discourage high payroll and create a better competitive balance. How can we create this balance in America without it being construed as Socialism? I purpose a cap on capitalism. A simple formula to encourage a fair payroll balance.
The formula goes like this: the highest payed employee cannot make more than a 1000 times more than the lowest payed employee. An employee making more than 1000 times the lowest paid employee will be taxed 75% on every dollar that exceeds the limit. An example of this would be a company with the lowest paid employee making 30,000 a year would have a CEO capped at 30 million dollars a year. (Bonuses are included in this formula) This formula is fair and will encourage CEO's who want to make more to pay more. All tax proceeds from this "Cap Tax" could go towards education and social services. The funds would assist lower paid americans with getting medical insurance and pursuing higher education.
