Limitation of Permitted Income

Social inequality is inevitable in any human society. All that one can hope for and, more pertinently, legislate for, is a decent and reasonable measure, so that inequality does not become excessive or grotesque.

Social inequality arises out of and is maintained by inequalities in both capital and income. Today I address only income. My contention is that the maximum post income tax income must be capped at (2016 values) £200,000 per annum. Needless to say, only a relative handful of UK citizens actually receive anything like that after tax; the average is closer to £20,000. Still, it is important that the huge incomes which a few have, be lopped off at that level or, arguably, at one even lower, for the preservation of some sense of social contract in society. That is a more worthwhile reason for this policy, rather than just the (often criticized) aim of raising more tax revenues, which might not even happen, taking things in the round.

The work of all citizens should be valued, by society, by the citizens themselves (valuing the work of others and having a modest pride in their own contribution, too). When a few award themselves or are awarded incomes in the many hundreds of thousands or even millions of pounds per annum, the whole fabric of society is gradually ripped to shreds.

There is another and oft-discussed policy to complement the above maximum-income cap. That second aspect is the concept that the pay of the highest employee or office-holder in an enterprise or a public service should not exceed that of the lowest-paid employee of the same body by more than a certain decided multiple. To my mind, that multiple should be 10x, that referring to post-income-tax income.

The above two policies will go far to knitting society together. There will be anomalies, special cases etc, but the important point is that the general idea will  be accepted by all or almost all…and will work practically.

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