The Wall Street Journal ran a report which says:
the percentage of total wages and salaries paid to top executives rose from roughly 28 percent of the national total in 2002 to 33 percent in 2007, just five years later.
Even worse, due to a cap on social security contributions:
Executives and other highly compensated employees now receive more than one-third of all pay in the U.S., according to a Wall Street Journal analysis of Social Security Administration data -- without counting billions of dollars more in pay that remains off federal radar screens that measure wages and salaries.
The pay of employees who receive more than the Social Security wage base -- now $106,800 -- increased by 78%, or nearly $1 trillion, over the past decade, exceeding the 61% increase for other workers, according to the analysis. In the five years ending in 2007, earnings for American workers rose 24%, half the 48% gain for the top-paid. The result: The top-paid represent 33% of the total, up from 28% in 2002.(...)
Social Security Administration actuaries estimate removing the earnings ceiling could eliminate the trust fund's deficit altogether for the next 75 years, or nearly eliminate it if credit toward benefits was provided for the additional taxable earnings.
So, in other words, not only are executives robbing the rest of the country blind of their income, that very income no longer contributes it's share into the social security fund, thus further starving out one of the last remaining social safety nets.
From Think Progress is this alarming graph on income inequality:
While U.S. worker productivity has skyrocketed over the past 30 years, wages have not kept pace.
America’s working middle class made it clear last November that they wanted change—and reshaping the nation’s economic framework to strengthen the middle class and close the wage disparity between the very top and the rest of us, is fundamental to that change.
Further quotes from Daily Finance:
the percentage of wages subject to the payroll tax declined to 83 percent in 2007 from 90 percent in 1982.
Now beyond the obvious, removing the cap (ceiling) on income which is taxed for social security, do we have any meaningful legislation on regulation of executive compensation?
1/3. How many Americans could be employed if this rob fest stopped?