The Ethical Ceiling: Why a Wealth Cap Could Save Capitalism

This paper proposes a wealth cap mechanism as an innovative alternative to traditional wealth taxation, where excess wealth above a specified threshold is redirected into charitable foundations rather than government coffers. Drawing on Rawlsian principles of justice, it is argued that current extreme wealth disparities cannot be justified.The paper addresses key objections including democratic accountability concerns and capital flight risks. It’s concluded that the wealth cap could transform competitive wealth accumulation into competitive philanthropy, creating a more ethical form of capitalism that addresses socioeconomic challenges while preserving market incentives.