Sunday, June 17, 2012

Responsible Corp = Low Tax

We collect tax to pay for social investment & costs. One major cost is cleaning up after private interests. We sadly provide a cut & run option to Limited Liability Corporations -- companies can abandon their mistakes and leave society the cleanup costs.

This undermines everyone's economic security. It is not good.

Raise corporate tax rates on limited liability corporations !

Increase criminal penalties for corporate crimes.

On the other hand, we could register companies in formats that do not allow defection. Investors would be & should be liable for their actions. Responsible.

Responsible companies deserve lower taxes.

The Limited Liability Corporation (LLC) & Public Limited Company (PLC; "public" means publicly-traded) are formulated to serve private interests. They have incentives to cut costs, and to shift costs to others. To assure their operations don't become a public burden, their selfish activities are monitored and circumscribed; they should be highly taxed. 

LLC & PLC = High tax

SRC = Socially Responsible Corporation = low tax