Wage and Price Controls Don’t Work
Government doesn’t work in the area of logic.
Check it out:
“California’s Bid to Tax Companies Who Don’t Share the Wealth — Last week, a committee of the California Senate not only talked about economic inequality — everybody’s doing that — but actually did something about it. By a 5-to-2 vote, it recommended to the full Senate a bill that would cut the state’s taxes on companies with lower ratios between their chief executives’ pay and the pay of their median workers, and raise taxes on companies with the kind of insanely high gap between chief executive and median worker pay that has become the norm in American business.
“To the best of my knowledge, the bill — SB 1372 — is the first in the nation that seeks to mitigate economic inequality through corporate tax reform. At a time when all the traditional institutions that enabled workers to win raises have broken down, it offers a way forward for those who’d like to see workers make a fair day’s pay for a fair day’s work. … The proposed legislation wouldn’t exactly plunge CEOs into poverty. It would reduce, on a sliding scale, California’s corporate taxes — currently set at 8.84 percent of net income — for any company paying its chief executive less than 100 times the pay of its median worker, and raise them, also on a sliding scale, for any company paying its CEO more. (Under the terms of the Dodd-Frank financial reform act, the Securities and Exchange Commission is required to publish the CEO-median worker pay ratio for every publicly listed company. The SEC is expected to begin this practice this year.)”
Did you know that was part of Dodd-Frank? I had forgotten it. Meyerson is a proud socialist. If you’re still scratching your head over who this guy is, he’s a very proud card carrying socialist. Now, they tried this. Go back to the first term of the Clinton administration. If you’ll recall, and I need to bring this up because I need to ask everybody, why didn’t this work? The same subject, income inequality. It’s one of the things the Democrats constantly go back to when they need turnout. Minimum wage. War on women. Republicans are racist. They’re all Donald Sterlings. This kind of thing. That’s what income inequality is.