azcaballer

Chicken and Egg: A Currency Called the Oil/Dollar?

If you want to get rid of the "corporate profit problem?" Get rid of the corporations tax and make all their income flow through to the share holders. This will cause a very different form of doing business, because retaining earnings will be taxed at the individual holder level so all corporate decisions will be directly felt by their share holders. This will have the business effect of creating companies run by democracies not by the select few at the top. I suppose that we would see companies less focused on huge profits. It would be interesting to see what would happen.

I suppose companies would be run like most small companies are today. Maximizing useful investment to grow the overall value of the business and minimizing any reportable profit through this investment. I think you would also see more corporates open up here in the US to avoid higher taxes elsewhere. Lower taxes equals more profits and less need to pass those taxes/costs on to consumers.

Also people would be more likely to get involved with the movement to curb government spending to minimise their own personal tax as a cheque will have to be written when shareholders get to pay the tax that Corporates used to pay.