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Monday, August 1, 2011

How to Control Transnational Corporations

The US doesn't subject individual corporations to individual tax rates, but such a scheme is legally feasible - after all, our constitution is amendable. We can make operating in our country a lot less profitable for a corporation if we don't like it - it will continue business in our nation as long we don't make it unprofitable. When it appeases us, we can ease up on it.

And we don't have to worry about such corporations leaving. Even if they only make a few cents more than they spend operating in a nation, they are obligated to stockholders to continue such operation to maximize profit. Maximizing profit includes not only maximizing revenue but also minimizing flowing, so they will outsource as soon as they figure out it saves them money.

It will definitely require some anticipation of corporations' range of economic possibilities to discern an appropriate tax. Negotiation with such corporations may also be necessary, but in the end such corporations will have to accept higher corporate taxes than if there were no changes made at all.

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