Sarkozy proposes companies pay a third of profits to employees

Yes, a bit like how you ask a child to think twice before he speaks. Instead that now, the thinking process, which is the most important, does not take place.

Nathyn, I’m not interested in your answer.

Setting asside the practical implications of this, I don’t see why it is even ethically desireable that employees should receive a share of a company’s profits. The success of a company depends on the effective utilisation of the factors of production towards the market’s most urgent ends. An employee is just one of the many factors of production and his effectiveness in that role need not bear any relation to the success of the comapny. He may be extremely unproductive while the company performs well or he may be extremely productive but the company performs poorly.

I think there is definitely a strong argument for relating an employee’s pay to their productivity but not for relating it to the company’s overall success.

this is nothing else than a heavy tax on income after tax, a tax on taxed income. and it all revolves about the question wether a tax can be neutral. common sense and theoretical consideraions show that a neutral tax cannot exist. what will happen, of course is, that investment and growth will dwindle.