“A half-century ago, a top automobile executive named George Romney — yes, Mitt’s father — turned down several big annual bonuses. He did so, he told his company’s board, because he believed that no executive should make more than $225,000 a year (which translates into almost $2 million today).
He worried that “the temptations of success” could distract people from more important matters, as he said to a biographer, T. George Harris. This belief seems to have stemmed from both Romney’s Mormon faith and a culture of financial restraint that was once commonplace in this country.Romney didn’t try to make every dollar he could, or anywhere close to it. The same was true among many of his corporate peers. In the early 1960s, the typical chief executive at a large American company made only 20 times as much as the average worker, rather than the current 271-to-1 ratio. Today, some C.E.O.s make $2 million in a single month.”
Excellent op-ed. Thank you David Leonhardt. Here is a popular comment I endorse.
When a nation refuses to invest in itself it rots. The American society of engineers gives our overall infrastructure a D rating. The corps of engineers says our infrastructure is close to failing. We’ve been at war for nearly two decades and our national deficit for 2018 is estimated at $440 billion dollars. Income inequality is the at the highest level since the 70’s and our students owe an average of $1.4 in student loans. We’re not the land of opportunity any longer.
At some point we’re going to need to raise taxes to invest in our country. Otherwise our best and brightest are going to start looking abroad for opportunities.
If you look at the happiest countries they have strong social safety policies and have invested in infrastructure and education. Denmark’s top individual tax rate is 60.4%, Sweden’s is 56.4% and Norway’s is 39%. These countries have government sponsored college education, paid parental leave, universal daycare, and universal healthcare. They only tax businesses at 25%.
Cutting taxes, especially for the wealthy considering how nicely they did after the recession is irresponsible. Hopefully our politicians will choose responsiblity and fairness but I doubt it.