HOW THE $115k - $460k INCOMES WERE CALCULATED
GDP, the total price of all the goods and services we produce each year,
determines how much income is available to pay out to workers. If we produce $14.5 trillion in goods and services, we obviously need to pay out $14.5 trillion in income to buy all those goods and services. So $14.5 trillion is the total amount of income we have available to pay out to all workers.
If we paid 100% of our income to workers and if we determined that paying the top performers in performance based jobs four times more is enough incentive and that doing physically or mentally difficult jobs were undesirable and that paying the people who did these jobs two times more is enough incentive and this income distribution plan was democratically approved and passed the legal test, that would enable us to pay $460,000 per year to the top 2.5% of all workers; $230,000 per year to the 12.3 million workers who do the mentally or physically difficult work of science, computers, engineering, medicine, construction, mining, and farming; and $115,000 to everyone else.
In 2010, we produced $14.5 trillion in total income:
http://www.bea.gov/iTable/iTableHtml...905=2010&906=A
And we worked a total of 222,736 million hours:
http://www.bea.gov/iTable/iTableHtml...905=2010&906=Q
Cost of Top Workers $460k is $221.15 per hour.
They make up 2.5% of the total labor.
$1.231 trillion = $221.15 * 2.5% * 222,736 million hours
.
Cost of Difficult Workers
$230k is $110.57 per hour.
They make up 9.47% of the total labor.
$2.332 trillion = $110.57 * 9.47% * 222,736 million hours
.
Cost of Minimum Wage Workers
$115k is $55.28 per hour.
They make up 88.3% of the total labor (88.3 = 100 - 2.5 - 9.47).
$10.872 trillion = $55.28 * 88.3% * 222,736 million hours
.
Total Pay
~$14.5 trillion = $10.872 trillion + $2.332 trillion + $1.231 trillion
So when you pay everyone from $115k to $460k as described in this plan, you will pay out a total income of $14.5 trillion which is equal to the $14.5 trillion in income paid out in 2010.