Wednesday, June 25, 2008

Fixing The Minimum Wage

Here's an idea McCain nor Obama will never go for: creation of a law attaching the annual compensation of company/corporate executives to the annual pay of their lowest paid employees.

The executives can get no more than, perhaps, 20 X more than the annual pay (to be taxed at 35%) of their lowest paid employees, anything above that amount in compensation (including stock options, etc.) will be taxed 100%. You do need a little bit of a spread (hence the 20X vs. 5X) because of all of the skilled levels of jobs within a company.

This would also include employees outside of the U.S., as well as employees of companies for whom work has been outsourced to, namely those displacing American employees. Executives cannot receive an increase in their compensation package until their employee's pay has first been increased.

If this were to happen, there would be no need for a minimum wage, being boardroom greed as it is, because you would begin to see all of the company employees getting pay raises really quickly.

In addition, this would assist in improving the standard of living for employees on a world wide basis, as well as level the playing field between applicants for jobs in America vs. applicants in other countries.

This could also provide a real boost for the economy (not the sorry excuse for a rebate we got this year), as these pay increases would be permanent, not a one time shot in the wallet.

What are your thoughts?

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