The Political Brain mentions two very interesting laws. Both are mentioned in the American context but can very well apply to India as well. As a novice reader i thought both the laws made sense (one more so than the other). Of course, the devil is in the details. But do you think these laws make sense, at least in principle? Will there be any improvement due to them? Do they break any key economic principles? Would you support these laws if they ever reach the Parliament? What riders, safeguards, improvements would you suggest?
Speak up people!
A Parent's Bill of Rights. When a corporate executive flies his private jet to meet with a client, that's a business expense, and it's a tax deduction. But when working parents take their children to day care, or when they invest in their children - and their country - by paying school or college tuition, that's their problem. That isn't right.
Child care expenses, tuition for children with working parents who are trying to get the best education for their children, and college expenses are not disposable income, and they should not be taxed. At all. We don't tax business expenses, and putting your children in day care so you can go to work is a business expense.
The Fair Salaries Act. The average income, bonus, and retirement packages of CEOs have skyrocketed in the last decade. CEOs are receiving annual pay increases of 15 percent on top of additional perks, whereas their workers are receiving salary increases averaging about 3 percent a year, which doesn't even keep up with inflation.
Corporations can't simultaneously argue that they don't have the resources to pay workers a higher wage or as much of their health benefits while lavishing huge salaries and bonuses on their executives. The performance of CEOs is directly related to the performance of those who work for them.
So we will reward companies that close the income gap between workers - from the assembly line up to the middle managers - and senior management with tax breaks, and will impose strict tax penalties on companies that continue to escalate the size of the packages they give their CEOs.