Argument: This will limit the control of the rich over key scarce resources

Some resources –most notably housing – are very important to large numbers of people, and owning them gives people a great deal of happiness. This policy will limit richer people owning several properties while others live in rented accommodation or smaller houses, as price competition for such properties will be less intense, and poorer people will be better able to compete through savings. Estimates in 2005 suggested there were 6.8million second homes in the USA1.This is a good thing, as it is likely that a person (or family) values their first property more than another person values their second property, known as the law of diminishing marginal returns. This is perhaps the best example of the ways in which inequality leads to worse outcomes for society.

1 E . Belsky, “Multiple-Home Ownership and the Income Elasticity of Housing Demand”, October 2006

Candidate 1: "Some evasion of this is inevitable; figures show $2 trillion of unreported income in the US in 20081. Furthermore, international cooperation is unlikely, as each country has a strong incentive to renege on agreements to attract more talented people to their country.

1 E . Feige, "America's Underground Economy: Measuring the Size, Growth and Determinants of Income Tax Evasion in the U.S", January 2011"
Candidate 2: "This price-lowering effect is most likely to be felt in those industries where the majority of the costs are in wages; these industries are likely to be service based industries. Individuals, especially poorer individuals, rarely buy services, so the effect on the poorest is likely to be limited."
Candidate 3: "High salaries incentivize people to do difficult or unpleasant jobs

Some jobs are extremely difficult or unpleasant. Consider a doctor, who trains for many years, often unpaid, in order to do their job – and the average doctor’s salary in the USA is close to the proposed cap, and surpasses it with merely 5 years experience1. Or consider a sewage worker or firefighter, whose job is one that many people would not want to do. High salaries are a good way of encouraging people to do these jobs; limiting the ability to pay high salaries will mean that some vital roles may be less appealing, and the job will not be done.

1 Payscale , “Salary for People with Jobs as Physicians/Doctors”, July 2011"
Candidate 4: "High salaries incentivize people to take risks and undertake research

Many entrepreneurs are driven by profit. This is the reason that people take out large loans from banks, often with their home as security, and use it to set up a business; the hope of profit and a better life. Without that incentive, the risk has a far lower reward, and therefore will appear to be not worth it. Entrepreneurs not only give others jobs, but stimulate the economy with new ideas and business practices that can spill over into other areas of the economy. Even within businesses that are already established, this policy will be problematic. For example, why would researchers at a pharmaceutical company try to develop a new drug if they realize they can't financially benefit from it? GlaxoSmithKline spent over $6bn dollars on research in 2010 alone1. This policy could limit such research into the type of technology (or medicine) that advances society.

1 FierceBiotech , "GlaxoSmithKline: The World's Biggest R+D Spenders", March 2011"
Candidate 5: "It is likely that foreign demand will displace national demand for properties, especially in key city areas (such as New York or London). Furthermore, having a nice house is one of the strongest incentives to have a job and be a productive tax-paying member of society; loss of this incentive may decrease a society's output level and tax revenue."
Candidate 6: "It is equally likely that money is a significant motivator in productivity, and that limiting wages will therefore harm productivity."
Candidate 7: "Social tensions are greatly exaggerated, and only actually felt when a specific crisis and against a very specific figurehead (in the case of Fred Goodwin, an entirely isolated example, the large amounts of media coverage he received for his role in the banking crisis). Furthermore, feelings of inferiority are typically reasoned away by people, who explain other's greater income in terms of their willingness to work hard, or being lucky. The feeling of superiority over others can be considered a motivator that encourages some people to work (See Opposition Argument One below). Finally, Sweden may be disanalogous as an example as they (and other Scandinavian countries) have a strong collectivist spirit that may be lacking in other countries."
Candidate 8: "High salaries incentivize people to work hard

People respond to incentives, and one of the most direct incentives is a financial one. Higher salaries encourage people to deploy their labor. This benefits society by increasing tax revenues that can be spent on redistributive policies; for example, consider the much maligned investment banking profession. It is not uncommon for investment bankers to work 14 to 18 hour days, and to work at weekends; it is unlikely they would do this without the incentive of high salaries and bonuses, at least in the long run. The taxation on financial service providers (that rely on such hard work) and the workers themselves is significant; in 2010 in the UK, it was 11.2% of total tax receipts1. Furthermore, the deployment of labor may lead to more supporting workers being needed and therefore job creation.

1 PWC , "The Total Tax Contribution of UK Financial Services", December 2010"
Candidate 9: "This motion will lead to people leaving the country, and will limit the intake of skilled workers

Many industries, especially at the highest paying end, rely on people of various nationalities. This is especially true in places seen to be financial centers of the world, such as New York, London and Tokyo – for example, 175,000 professional or managerial roles were given to immigrants in the UK in 20041. When a policy such as this is instigated, many people will leave to other countries that do not have such a limit, especially if they are initially from another country. Furthermore, it will be difficult for a country to attract talent while this policy is in effect, as the significant difficulty moving country involves, such as leaving friends and family behind, cannot be compensated for by a higher income.

1 John Salt and Jane Millar, Office of National Statistics “Foreign Labour in the United Kingdom: current patterns and trends”, October 2006"

It is likely that foreign demand will displace national demand for properties, especially in key city areas (such as New York or London). Furthermore, having a nice house is one of the strongest incentives to have a job and be a productive tax-paying member of society; loss of this incentive may decrease a society's output level and tax revenue.
