Five Quick Questions
How much do you remember about How Much Money Is Too Much?? We'll let you know how you did at the end.
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America's own tax history already answered this question once — at a 94% top rate. What changed, and what would ‘enough’ look like today?
The chapter treats “how much is too much” as a real, answerable question — tracing how America’s top tax rate has swung from 7% to 94% and back down again, then running the actual math on what a maximum-wage policy would look like today.
How much do you remember about How Much Money Is Too Much?? We'll let you know how you did at the end.
1913: the first federal income tax topped out at 7% on incomes over $500,000 (about $15.9 million today). By 1944, wartime pressure pushed the top rate to 94% on income over $200,000 (~$3.5 million today). Through the 1950s and early ’60s — often remembered as a boom era, not a stagnant one — the top rate held between 82% and 91%. Then the Tax Reform Act of 1986 cut it to 28%. Today’s top bracket sits at 37%.
CEO pay is now 320 times typical worker pay — up 940% since 1978. Two real, current policies push back on that gap: San Francisco adds a 0.1% local tax surcharge on any company whose top executive earns 100x the median worker (0.2% at 200x). Portland, OR (since 2016) adds a 10% surcharge on public companies where the CEO earns 100–250x the median worker.
Earning $1 every second, nonstop, from birth to age 100, adds up to about $3.1 billion. Elon Musk’s 2024 net worth (~$450 billion) exceeded the combined annual budgets of 37 U.S. states, and the annual sales of all but three companies in the entire Fortune Global 500. A 100x-lowest-paid-worker cap, using a $21.46/hour living wage as the floor, would put a ceiling around $4.4 million/year; using the $7.25 federal minimum instead, about $1.5 million.
The chapter doesn’t argue for one number — it argues the question is legitimate. Where would you personally draw the line between “very successful” and “structurally too much,” and does your answer change depending on whether you’re picking a tax rate, a pay ratio, or a hard cap?
These chapter hubs connect closely to the major themes explored here.