The maximum wage or the wage ceiling – is a legal limit income, which person can earn. The maximum wage often limits the possibility for inflation of a currency and economy. Also, it could reduce devaluation of a currency and effectively limit the availability of currency. Most of the critics point out that the wage ceiling limits the nominal income of workers. The maximum wage should impose a limit on earnings and could work beside a minimum wage. This means that is redistributing wealth evenly within society.
Roosevelt proposed the wage ceiling as a fixed amount. Beside this, President of the United States proposed a 100 % tax on all individual income over $25,000. People can earn as much as they like during a certain period, but all money must be spent within an equivalent time period. Earlier, Aristotle wrote that nobody should have more than 5 times the wealth of the poorest people. Sam Pizzigati said that the income tax was considered as a radical idea. Also, Senator Jeff Bingaman has called for awarding tax breaks to companies that keep executive compensation fifty times more than a company's lowest paid worker. For example, in companies where is a $1-million-a-year corporate chairman with a $100,000 salary increase would have a raise the $10,000 salary of the company's lowest paid worker to some additional thousand dollars. In most cases, the maximum wages include stock options, dividends, interest and capital gains.
The maximum wage can cause an inflation because of the wage ceiling might heighten pressures to raise the salary for low-paid workers. Unintended consequences can arise and would include cheating on taxes, and deposits in salaries secret offshore accounts. The wage ceiling can encourage venture capitalists to close shops and companies. A lot of critics argue against the wage ceiling because they are afraid of the economic situation of the society. But there is no reason for concern. According to Graef Crystal’ postulates, an expert on executive compensation, the maximum wage will not be a hindrance to Americans, they will strive to fix the situation. For example, it is hard to believe that Bill Gates and other great people would play tennis and relax all day long. Those people would be working hard and tray to earn more and more money, and have the maximum wage to produce some new products for people. The maximum wage is a very helpful tool for society.
The maximum wage or the wage ceiling – is a legal limit income, which person can earn. The maximum wage often limits the possibility for inflation of a currency and economy. Also, it could reduce devaluation of a currency and effectively limit the availability of currency. Most of the critics point out that the wage ceiling limits the nominal income of workers.