Tax policy the problem

This country’s greatest problem is the ever growing wealth and income gap. We may debate appropriate solutions, but the problem is clear.

Sixty years ago the average CEO was paid about 30 times the average pay of his employees. Today that ratio varies between 300 and 1,900 times, depending on where you look.

What’s the difference? To me the answer is clear: tax policy. In the 1950s and early 1960s, we had steeply graduated income tax rates that topped out at 91 percent. That highest marginal rate made it irresponsible for a CEO to pay himself an astronomical salary. Instead, some of that money was shared with the rank and file, maintaining a reasonable spread between blue collar workers and executives. In addition, the higher taxes provided government with surplus funds that were used to build infrastructure all over the country.

Today, the mentality that “it’s our money and we know best how to spend it” has resulted in the problematic wage gap, rapidly decaying infrastructure and substantial national debt. The solution is obvious: higher taxes. However, the political climate is so averse to that solution that, in my view, the problem won’t even be addressed until it’s beyond reasonable repair.

Bob Wynhausen

Sandpoint