That sounded like a great idea at first. But the proposal is actually taxing higher wages:

> The government might also consider a measure that would directly operate to bring inflation expectations down without necessitating a rise in unemployment. This would be a tax on inflation. For example, they might announce a baseline reference level of the growth of average hourly earnings over the next year of 3 per cent. They could then implement a tax whereby each firm who grants a wage increase above 3 per cent would be required to pay a 100 per cent tax on the excess.

No... that's not the problem. Demands for higher wages are a downstream effect of windfall profits. The excessive profits should be taxed to hell.