Corbyn's maximum wage pledge

A much-needed leveller or an unworkable fudge?

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In his big leadership relaunch this morning Labour leader Jeremy Corbyn threw in a surprise call for a maximum wage cap for the country's highest earners.

He believes it will stop post-Brexit Britain from becoming a "grossly unequal, bargain basement economy".

Party politics aside, could such a cap really be practically implemented? And would such an instrument make society fairer?

Replies (23)

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By cheekychappy
10th Jan 2017 14:14

Party politics aside, could such a cap really be practically implemented?
No.

And would such an instrument make society fairer?
No.

He earns roughly £125k per year, plus expenses, gold plated pension, and other perks. So the £200k cap he proposes seems a rather convenient number.

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By The Highlander
10th Jan 2017 14:35

The man's an idiot to suggest such a thing, it shows a naivety beyond belief.

Why don't we all just get paid the same (a national wage) and do job and house rotation to be really fair. So next week I'll be a doctor and live in a council house and the week after I'll clean the public toilets and live in Buckingham palace! Fairs, fair after all.

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Locutus of Borg
By Locutus
10th Jan 2017 14:44

Would this cap apply to just employment income or include things like dividend income and gains?

What would happen if multiple companies were to each pay an employee / director an amount that is just below the cap?

Does this cap apply to entrepreneurs that have set up their own businesses and happen to become successful?

Given that the wealthiest 1% contribute a significant amount of tax, how would that tax gap be plugged?

It all sounds like a daft idea, that is both unworkable and will do nothing to make society "fairer".

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RLI
By lionofludesch
10th Jan 2017 14:51

Just jack the income tax rate up to 150% above £200000.

Double that on anyone who's owned BHS.

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By Banjan
10th Jan 2017 14:53

I could put everything I own on the line to start a business, risk losing my home, work 24/7 52 weeks of the year building up that business, and eventually give employment to hundreds of people, and boost Britain's exports by millions of pounds a year, and Corbyn says that no matter how much I risk, and no matter how successful, and no matter how many jobs I create I will not be allowed to take more than £200,000 a year ? Why the hell would anyone bother or take the risk for so little? The man is a fool.

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Replying to Banjan:
RLI
By lionofludesch
10th Jan 2017 15:05

Banjan wrote:

I could put everything I own on the line to start a business, risk losing my home, work 24/7 52 weeks of the year building up that business, and eventually give employment to hundreds of people, and boost Britain's exports by millions of pounds a year, and Corbyn says that no matter how much I risk, and no matter how successful, and no matter how many jobs I create I will not be allowed to take more than £200,000 a year ? Why the hell would anyone bother or take the risk for so little? The man is a fool.

You may be surprised to learn that many taxpayers earn less. They survive and even manage to pay tax.

Perhaps someone who created so many jobs would not be earning over £200,000 from his own efforts but from those of his employees.

In which case, it's arguable who deserves the pay rise.

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Replying to lionofludesch:
Glenn Martin
By Glenn Martin
10th Jan 2017 16:57

I might get a game in the premier league if they cap the wages at £200k.

Rooney gets that a week, all the good players would be off in the blink of an eye.

As well as ending democracy Corbyn would also be responsible for ruining football.

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By InflatableBassPlayer
10th Jan 2017 15:32

No doubt Team Corbyn was up all night working on a nice headline-grabbing piece to present Jezza as the people's champion.

They failed.

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By Parmstrong83
24th Jan 2017 15:35

n/a

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By Duggimon
10th Jan 2017 15:35

Where would the rest of the money go? It's not unforseeable that a company could make more than £200,000 per employee if it was within the right sector and was very successful. If it was say a 2 or 3 director property or investment company with high gains it could be in a position where the company made money that nobody was allowed to take out.

What's good for the economy is that the people who make money spend it again, not that everyone gets the same money. There are ways of addressing the imbalance that unquestionably exists but this is an idiotic one.

Imagine the impact on the football leagues if it did happen though. In fact I've changed my mind, I'm all for it.

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Replying to Duggimon:
RLI
By lionofludesch
10th Jan 2017 17:32

Duggimon wrote:

Where would the rest of the money go?

Tax. Build hospitals. Heating for old folk. Cut prescription charges. Repair the railways. Bigger salaries for MPs.

Just a few ideas.....

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By Ruddles
10th Jan 2017 16:40

He's obviously decided that it was an unworkable fudge

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Replying to Ruddles:
Tom Herbert
By Tom Herbert
10th Jan 2017 17:10

In almost the time it took me to compose that Any Answers question JC had changed tack... That'll teach me.

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Glenn Martin
By Glenn Martin
10th Jan 2017 16:53

Whatever JC says doesn't matter as he will never be in a position to do anything about it.

With regards to wage cap it clearly would not work as I assume he is aiming at the likes Philip Green.

It would take the slippery B*astard about 5 minutes to work out a way to side step any legislation capping his earnings, and he would go unchallenged to make vast sums of money.

Life isn't fair and its not a politicians role to try and make it so.

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Replying to Glennzy:
By Tim Vane
10th Jan 2017 17:47

Glennzy wrote:

Whatever JC says doesn't matter as he will never be in a position to do anything about it.

Surely if there is one thing 2016 has taught us, it is that impossible unthinkable things can happen.

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Replying to Tim Vane:
Portia profile image
By Portia Nina Levin
10th Jan 2017 17:56

My faith that we had got past the "glitch" was when Honey ("I say Honey, you say G") G got booted off the X factor.

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By petersaxton
10th Jan 2017 19:23

Does it really matter what the Labour Party, the Greens or the Liberals say? They have no basis in reality.

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By bernard michael
11th Jan 2017 10:33

Later in the day he performed a U-turn and is now saying thathe will introduce 2 new tax bands for the top 5% and 1%. This was after one of his MP's said a salary cap was "totally idiotic"

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Replying to bernard michael:
paddle steamer
By DJKL
11th Jan 2017 11:10

bernard michael wrote:

Later in the day he performed a U-turn and is now saying thathe will introduce 2 new tax bands for the top 5% and 1%. This was after one of his MP's said a salary cap was "totally idiotic"

If I heard him correctly Richard Murphy on Radio Four yesterday was not very keen on the idea, I think he considered it impractical; so the backbone/mainstay of input into "Corbynomics" does not appear to like the idea, has JC gone rogue??

(To be fair I think Corbyn merely adopted/ followed some of Mr Murphy's advocated ideas, obviously this one was not one of them.)

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Portia profile image
By Portia Nina Levin
11th Jan 2017 11:28

The worst thing is that our entire political system is based on their being a credible opposition.

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Replying to Portia Nina Levin:
paddle steamer
By DJKL
11th Jan 2017 11:48

Portia Nina Levin wrote:

The worst thing is that our entire political system is based on their being a credible opposition.

It is a fair indictment when the SNP is more effective than Labour despite not standing south of the border; I think I read somewhere that Nicky's rating in England was higher than JC's; unbelievable Jeff.

The plus point re lack of effective opposition is that for balance we also have a lack of an effective government so there is a limit to the amount of damage they can do as they do not appear to be capable of doing anything; I have not been impressed by TM and her dream team, on Brexit they appear to be akin to Nero; fiddling whilst Rome burns.

Imho it is the information void that is the most damaging aspect of Brexit, up here economic activity is very slow; we get a feel re activity from the number of enquiries to lease our commercial properties , or number of tenants moving elsewhere, neither is much happening, everyone is just sitting tight, the tumbleweeds are fair birlin doon the street.

Still, gives plenty of time to post on here.

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Replying to DJKL:
Portia profile image
By Portia Nina Levin
11th Jan 2017 11:57

I disagree with your final point. There cannot be information. Information will prejudice negotiations, and negotiations are a certainty.

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Replying to DJKL:
By InflatableBassPlayer
12th Jan 2017 12:20

"I have not been impressed by TM and her dream team, on Brexit they appear to be akin to Nero; fiddling whilst Rome burns."

They are stalling because the elite need time to move their investments accordingly. When this is done, Brexit will happen.

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