Corporate Tax and Capital

Updated: Dec 4, 2021

Capitalism has brought more prosperity and wealth to the world than any other system of commerce. However, capitalism has been exploited through greed and avarice to the point that it has become imbalanced and corrupt. The exploitation of capitalism has led to many of the world's problems. Pollution, climate damage, and exploitation of labor are some of the results of exploited capitalism. The concentration of wealth has led to inequalities that cannot be sustained. Most individuals are not equipped to handle loads of wealth, nor are their descendants deserving of even most of a person's accumulated wealth. Accordingly, the accumulation of too much wealth needs to be addressed through regulation. Regulations for excess wealth in the form of windfalls, inheritance, and corporate dominance need to be implemented.

The corporate tax model goes a long way in addressing the concentration of wealth. The simplicity of the business models allows entrepreneurs the ability to compete and cooperate with businesses of all sizes. Tiered taxing based on net income fairly and progressively allocates the tax burden among businesses of all sizes. All business is operated as a corporate entity.

Our corporate tax model has three types of business entities.

1) Product/Extractive Companies (Amazon, Exxon-Mobil, Coca-Cola, etc.)

2) Service Companies (Verizon, Google, Facebook, etc.)

3) Public Benefit Companies (Mutual Health Insurance Companies, Pollution Mitigation Corporations, Community Trust Funds, Existing 501(c)(3) Charities, Pharmaceutical consortiums)

The corporate tax model is simple and tiered for the size of the business. The model is simple and effectively taxes a large corporate entity at about 18-20% of their adjusted net income for a year. The corporate tax formula addresses wage unfairness, healthcare, and environmental issues in a simple and easy-to-understand format. For example, Apple, Inc for 2018 would have paid approximately $10.2 billion in tax on $56.5 billion in net income. The corporate tax formula is as follows:

Net Income $56.5 Billion

Capital Deduction/Adjustment (16.9) Billion

Net Income less Capital Deduction 39.5 Billion

60% Wage Bonus Deduction (39.5*60%) (23.7) Billion

Initial taxable income 15.8 Billion

Initial tax rate 65% $10.2 Billion

Potential Tax Credits:

Healthcare Credits

Environmental Credits/(Fees)

CTF/PBC Credits

Net taxes due $10.2 Billion

The capital deduction/adjustment, wage bonus, and credits address all of the main issues facing corporate America.

Capital Adjustment/Deduction is the lesser of 30% of a company's net income for the year or 25% of the company's equity on the balance sheet. It is a straight deduction from net income that allows a company to increase their equity.

60% Wage Bonus Deduction A company is allowed to pay bonuses based on their net income up to 60%. This must be allocated to work classes based on the following ratio professional 25%, skilled personnel 30%, and labor 45%.

Tax Credits/Fees Tax credits or additional fees would be available/incurred to companies who allocate their capital to employee healthcare, environmental issues, and contribute to Community Trust Funds or Public Benefit Companies.

Corporate entities will tool their products and services to be earth-neutral or beneficial and circular economic principles and practices will be regulated into the tax code. Sustainable economic growth with pro-earth principles is the only way forward.

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