I would like to hear opinions on how we can rationally and scientifically decide what maximum yearly income should be warranted in specific countries. I am in favor of democratically deciding to impose a maximum income, and applying a 100% tax above that maximum income. If I were to personally express a preference relevant to my own country I’d vote for linking maximum income to a basic income, where the maximum income would related by national constitution to 100 times per month the basic income.
In other words – if a basic income would be 1500 euro per month, the richest people would experience 100% income tax over an income of 150.000 euro per month. Implementation of this tax regimen should start gradually and it should be counted for all forms of income, including perks, bonuses, transnational rewards, as long as you maintain a residence in Europe (or the Netherlands). If you can prove you pay more taxes elsewhere and can prove you are a resident elsewhere you won’t pay double. In terms of gradual introduction I am thinking an initial ratio of 1000:1 vis-s-vis income tax relative to a basic income, reducing that ratio by 5% per year for a period of 20 years.
I am not interested in discussion whether or not this would “demotivate” the rich, or “this would be theft”. We have a society, society needs money to operate, we have societal debts that needs to be paid and not enough people can find work. I am only interested debating a science/mathematic/fiscally sound formula or algorithm for the implementation of such a Maximum Income.