What would happen if no one could make more than 100,000 dollars a year?

My Daughter asked me, "Hey Dad, what would happen if no one could make more than 100,000 dollars a year?"

We talked for a little while, but ultimately, I need more direction. What books should my daughter and I read, to help us answer this question?

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It would depend on what angle you're looking at it from and what rules... like is this just one nations law preventing it? all nations? or magically power?

But my answer would be, that people would simply stop reporting making of more than 100,000 and they would keep on pocketing the money. Like prohibition, it was illegal, yet making it illegal just make it "cooler" and people just did it underground instead of in public.

Reports have suggested that certain people that make a ton of money are already illegally sending part of that money to overseas banks, pocketing it and not reporting it as income, so they don't have to pay taxes on it.

If their was a set law, I think people over the set amount would first attempt to spread it out, so instead of making 200,000 in one year, spread it out and have 100,000 over two years... but once you got to such a high amount, they would then start hiding and pocketing it without reporting it.

And there would be corruption all over the place, like there is in all government, but especially communism governments, where the idea is to share everything equally (in theory sounds interesting), but what seems to happen is that the people in power end up taking a lot more than their fair share and giving it to people they favor more than people they don't favor... it's sort of human nature of greed. And that would happen here, were pay off would be made, just like some people claim is currently being done, for government to look the other way on certain issues.

I think it would have mainly negative implications if you limited how much someone can earn. It basically removes the reward for working hard (I'm not saying that rich people work harder, it just removes the incentive to want to earn a higher amount). It could also prove to be a disincentive for people for people looking to start a business and creating jobs, which would increase unemployment rates. Governments would collect less income tax as a result of higher unemployment and the cap on taxable income, which would leave less funding for education, healthcare, social support etc.

My family would most likely be unable to afford everything we need, since we have 7 people and 2 with medical issues that are pretty expensive.

Anonymous 0Reply

and what you do not knows about this world

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