Corporation Tax linked to Employee Pay discrepancy.

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Corporation Tax linked to Employee Pay discrepancy.

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It is time we looked at a more mathematical way of taxing corporations, I would suggest we based this how spread out the pay is for said firm.

There is a formula relating to this known as the "Gini Coefficient"; essentially, this gives a number between 0 and 1 indicating how spread out a quantity is. Relating to the issue at hand: "1" would mean that one person collects all the pay whereas "0" would mean that everyone is paid equally.

I suggest that we have a variable tax rate, so those firms that spread out the wealth benefit from a lower tax rate and those firms that have a huge disparity between employee pay are consequently penalised.

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