Massive wage inequalities between top earners at companies and the lowest paid will continue until effective solutions are introduced to combat the inequality.
I propose using a simple multiplier which would take into account the difference between the highest and lowest paid at a company. This multiplier would then be used to increase a company’s corporation tax level by a small percentage. Companies that had less disparity between the top and bottom earners would stay on the UK’s current low level of corporation tax. Whereas companies that have a large disparity would see their corporation tax bill increase by around 5%.
Remuneration boards will continue to vote for large pay increases for chief executives, a sliding scale tax regime would either reign in large salaries or hopefully lift the lowest paid.
Large salary differences in the private sector not only hurt the lowest paid, but they also spill over into the public sector increasing the wage bill of civil servants and ultimately the tax bill of all in the UK.
1961-11