High salaries incentivize people to take risks and undertake research  Many entrepreneurs are driven by profit. This is the reason that people take out large loans from banks, often with their home as security, and use it to set up a business; the hope of profit and a better life. Without that incentive, the risk has a far lower reward, and therefore will appear to be not worth it. Entrepreneurs not only give others jobs, but stimulate the economy with new ideas and business practices that can spill over into other areas of the economy. Even within businesses that are already established, this policy will be problematic. For example, why would researchers at a pharmaceutical company try to develop a new drug if they realize they can't financially benefit from it? GlaxoSmithKline spent over $6bn dollars on research in 2010 alone1. This policy could limit such research into the type of technology (or medicine) that advances society.  1 FierceBiotech , "GlaxoSmithKline: The World's Biggest R+D Spenders", March 2011