6 September 2019 - corporate tax

1. Big businesses can get too much market power. We want a force to counteract economies of scale. 2. In a public company, leaders have incentive to push up their stock price during their tenure, promoting short-term thinking and even insider trading. What can we do? A direct tax on market capitalization penalizes large firms that hit a rough patch, risking stability. Instead, graduate the corporate income tax by market cap. The small businesses gain an edge and large successful firms that can afford it shoulder the main burden. And unless they plan to issue shares, they’ll talk down their stock value to save on taxes, and we’ll all live in a glorious economic utopia just like all those before.