It is thought that well-paid employees account for a small number around the world. This can bring some benefits for the country, some other people believe the authorities don’t need to allow salaries above a certain level. I will discuss both of these views in my essays below.
On the one hand, it is true that the higher money workers receive, the better their quality of life gets. This is because, If the workers earn a top salary, they will have more money to pay for the expenditure. Take the life in urban areas for instance, to rent an apartment you need at least 3 millions each a month, except for electricity, water, and keeping motorbike bills. Furthermore, the tuition for children or other special occasions like Tet holiday,…Therefore, people who have strong financial resources, they are likely to pay for these expenses. As a result, a lot of households like that, society will be better. Another one, the income of a person is one of resources to raise revenue of the government through personal income tax. The money is used for public purposes such as constructing infrastructure,roads, and schools. So the amount of this revenue is high, which means that the government budget can expand spending.
On the other hand, the cited situation has some disadvantages. Firstly, the people who receive a high-pay will pay less a great deal of money for types of tax like Valuable Added Tax or Excise Duty comparison with low-income workers. It means that VAT and Excise duty are regressive taxes. Take this more profound instance, when you buy an item, you will pay 4 millions VND. Taking 4 millions VND compared to staff having different salaries 50 and 10 millions respectively. Consequently, the proportion of tax low-income staff is 40 percent, and this figure for high-income staff is 8 percent. As a result, it indicates the unfairness between the class. In addition, if the share of employees is much higher, there is an increase in the number of people buying commodities, which leads to aggregate demand shift to the right. At the same time, prices of these products will go up. Therefore, the other people will be paid higher in the past.
In conclusion, earning an extremely high salary brings some merits like improving the quality of life for both families and community and contributing to the government’ revenue. Some demerits, however, are given like unfairness between the people, and a climb price making these low-income people pay for goods with the higher one.