Economist Dean Baker: Let's Stop Subsidizing The Wealth to Do At The Non-Profits

The Huffington Post reports:

an obvious public policy for people concerned about inequality: cap the pay of anyone working at non-profit organization at something like $400,000 a year (twice the pay of a cabinet secretary). We generally are able to get very competent people to work as the Secretary of State or Attorney General. If a foundation or university can't attract competent people even when offering twice as much money, perhaps it is not the sort of organization the taxpayers should be subsidizing.

Note that this is not capping pay at these organizations. If Bill Gates wants to pay someone $2 million or $3 million a year to run his foundation, he is welcome to do so. He just won't be able to get the taxpayers to subsidize his foundation.

Ever notice how the "un-taxed" sector of the economy supports higher taxes on the taxable sector of the economy?