Maximum wage

A maximum wage is an enforced limit to how much an individual can earn. It is a related concept to the minimum wage, which also aims to preventing the distribution of wealth from becoming overly lopsided.

A maximum wage can be implemented through a direct limit on earnings, or indirectly by scaled taxation whereby the top earners in a society are taxed extremely high percentages of their income. This redistribution of wealth provides more funds for government to assist poorer people (e.g. via welfare). This system has been imposed by some social democratic governments such as that in power in Sweden in the 1960s.

A related concept is that of maximum total earnings. This suggests that when a person has accumulated sufficient wealth that they can effectively survive on the interest such wealth can earn, they must stop working and let someone else work. This concept is purely theoretical and no working example is known to exist.

In his 2000 run for Green Party presidential candidate, Jello Biafra advocated instating the maximum wage in the United States. As president, Biafra would have used the maximum wage to increase taxes for the wealthy and eliminate taxes for those in the lower and middle class. However, Ralph Nader won the party's nomination instead, and did not win the election.