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A salary cap doesn’t change the market rate! It just obfuscates it. Salaries for public companies locked at 10M/yr? Ok, now firms have to compete on amenities.

A salary cap doesn’t change the market rate! It just obfuscates it. Salaries for public companies locked at 10M/yr? Ok, now firms have to compete on amenities. (Your current firm gives you a free car? Ours gives a jet, a personal Michelin star cook, and complimentary beverages)

n2d4 3y ago
Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such.
- krupan 3y ago
  You'd think so, right? Look up why corporations started providing insurance to their employees. Look into why your compensation is not just a salary, but salary, bonuses, stock (options or RSU's), etc.
  - wmf 3y ago
    AFAIK health insurance is special-cased by law. I had to pay (a trivial amount of) tax on imputed income from IBM's life insurance. The IRS is wise to a lot of perks like company cars.
  - n2d4 3y ago
    As others have mentioned, health insurance is special and may or may not be taxed. Bonuses and stock however are taxable.
- sudhirj 3y ago
  It isn't usually classified as a gift, it's company property that you use exclusively. So on the books it's a depreciating asset for the company.
- jjav 3y ago
  > Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such. The company doesn't gift them a car. The company buys a car held in the name of the company and lets the person use it.
  - giaour 3y ago
    If used for personal purposes, that car at your disposal would still be a taxable benefit.
asadotzler 3y ago
Caps work. If they didn't, they wouldn't be in massively expensive fields like sports.
- Domenic_S 3y ago
  Salary caps are exactly how we got health insurance tied to your employment in the US (during WWII)
- lazide 3y ago
  Salary caps in sports are literally just to enforce owner cartels and limit the ‘talents’ negotiating power.
- andrewjl 3y ago
  Sports teams don't typically pay players in equity.

n2d4 3y ago

Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such.

krupan 3y ago
You'd think so, right? Look up why corporations started providing insurance to their employees. Look into why your compensation is not just a salary, but salary, bonuses, stock (options or RSU's), etc.
- wmf 3y ago
  AFAIK health insurance is special-cased by law. I had to pay (a trivial amount of) tax on imputed income from IBM's life insurance. The IRS is wise to a lot of perks like company cars.
- n2d4 3y ago
  As others have mentioned, health insurance is special and may or may not be taxed. Bonuses and stock however are taxable.
sudhirj 3y ago
It isn't usually classified as a gift, it's company property that you use exclusively. So on the books it's a depreciating asset for the company.
jjav 3y ago
> Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such. The company doesn't gift them a car. The company buys a car held in the name of the company and lets the person use it.
- giaour 3y ago
  If used for personal purposes, that car at your disposal would still be a taxable benefit.

asadotzler 3y ago

Caps work. If they didn't, they wouldn't be in massively expensive fields like sports.

Domenic_S 3y ago
Salary caps are exactly how we got health insurance tied to your employment in the US (during WWII)
lazide 3y ago
Salary caps in sports are literally just to enforce owner cartels and limit the ‘talents’ negotiating power.
andrewjl 3y ago
Sports teams don't typically pay players in equity.