Minto advocates 100% tax rate

I was never sure of is a communist or just a socialist (in terms of economic philosophy). He answers that today with his blog advocating a salary cap and 100% tax rate on top of that:

My pick would be to set the maximum income at 10 times the minimum wage. This would mean a maximum income of $250,000. The easiest way to enforce this would be setting a 100 per cent income tax rate for the combined income from all sources (including share allocations, allowances etc) above this level.

This system of salary caps is not a new concept. Most communist countries have or had such salary caps. Most have abandoned such practices, as they have learnt what happens when you do. I think North Korea and maybe Cuba still have such salary caps though.

Note Minto’s proposal is not just for salaries. He proposes 100% tax on income over $250,000 from all sources.Can’t see a lot of people setting up their own companies or businesses in future.

What will be most amusing is to see how much the tax take drops. It wouldn’t just be people earning over $250,000 who would be leaving. Minto doesn’t understand what aspiration is.

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