Eliminate Corporate Taxes

Eliminate Corporate Taxes

(= Massive Foreign Investment into the U.S.A.)

All taxes paid by Corporations and expenses associated with complying with IRS regulations are added to the purchase price of everything they sell.

It is the PURCHASER who bears the financial burden for running our government and paying down the National Debt.

Elimination of Corporate Taxes will reduce this "COST OF DOING BUSINESS" that is added to the purchase price.

So, AT THE END OF THE DAY, Corporations DO NOT PAY TAXES, their consumers do.

Benefits:

1. Lower Prices for Consumers = More discretionary money for them to spend on goods and services.
   
2. Corporate Tax Deductions aimed at improving the health and further growth investment of Corporations would be eliminated.. however, the costs saved by not needing to comply to IRS regulations would improve their bottom line for growth investment. Immense savings would be gotten by eliminating all tax accountants, tax lawyers, and associated facility expenses which could be used for GROWTH.
3. The people displaced by this move have the skills and abilities to provide Corporations with cost saving budgets and processes. Another GROWTH activity... Lean and Mean. New Foreign Investors would compete to hire displaced tax attorneys, tax accountants, and tax related employees because of a shortage in the work force.
4. Less government expense managing Corporate Taxes = more money for the government to use in more productive endeavors such as improving EPA monitoring of environmental issues  (which I believe should be handled by the States. Why?, Because the cleanest states would compete against other states for quality of life for corporate employees.)
5.  A more simplified system that would free up an immense amount of time for Corporations and individuals to create new technology, provide better services, and SPEND MONEY, It is only when money is spent that all taxes are actually paid to the governments: Federal, State, and Local.
6. NO CORPORATE TAXES would cause a MASSIVE INFLUX of FOREIGN INVESTMENT into the U.S.A. thereby reducing the number of unemployed and increasing the competition for employees = Higher wages and benefits. Massive foreign investment would mean more purchases = more money for the government coffers.
7. Happier, less stressed citizens at all levels = lower Medicare and Medicaid and other entitlement costs such as unemployment.

An Exercise in Upside Down Thinking

 Let's Tax Savings

(Savings is defined as money that does not flow and assets that do not aid in the flow of money.. Savings just sits there.)

---- Everyone should know by now that ALL TAXES ARE PAID BY THE PURCHASER -----
(For those of you that don't know this, I'll explain.. All items sold has a "cost of doing business" added to the purchase price. The cost of doing business includes corporate taxes.)

Money in a mattress does no one any good except for the "owner" who sleeps on it feeling secure.

Our current tax system taxes the flow of money.  Taxing the flow of money  slows down the economy.

Let's think about doing something completely different... Let's tax all money and assets that do not promote the FLOW of money.

I'm not suggesting going whole hog at this... there has to be some savings, but how much?
I suggest a percentage threshold, below which savings and idle assets are not taxed; above which is taxed.

Let's assume there is an optimum balance between the amount of money in "savings" and the amount of money that is flowing (being spent).  If the right ratio of savings versus spending was found, a dollar would remain a dollar: no inflation, no deflation. Everything owned, both savings and money promoting assets could be passed on to heirs without any devastating results.

The optimum process would grow both sides of the equation.  Savings would grow as the economy grows.

Of course, this plan has all the trappings of complicating itself like our current tax code. But the change would promote the economy instead of  hinder it.

I like Heramn Cain's Dynamic Analysis

Herman Cain Cannot Lie

I like Herman Cain's Process

I've worked in a lab and spent many hours trying to analyze, mathematically model, and optimize formulas for consumer products.  During my years of learning, I discovered dynamic analysis and learned that it was very effective in finding the best solution to "multivariate" problems.

When I heard Herman Cain mention that he is a mathematician and uses dynamic analysis, I knew

he was going to be a winner.  Math cannot lie.  Herman Cain knows this.

Enjoy this video I put together. It explains how dynamic analysis can fix our country.

My Perfect USA

This idea has been noodling in my head and I can't stop thinking about it.

It involves the nasty politics, name calling, distrust, lobbying or lying with an agenda.

This current scenario doe not have to exist if we adjust a few things.

Presently, there are two main activities occurring in our society..

1) Productive Work: building houses, manufacturing products, providing services.

2) Non-productive work: Law enforcement, writing laws, collecting taxes, politics (Yes, all politicians try to get a bigger piece of the tax revenue pie.)

What would happen if our country focused all of its efforts on Productive Work, and eliminated as much Non-productive work as possible.

Here are some thoughts that I invite others to embellish upon.

1) Eliminate any tax responsibility from Corporations who hire people. (This would free up the money and non-productive time that corporations spend on tax accounting, tax lawyers, and all other the tax compliance issues. i.e. the employee would pay income taxes, flat rate, no sliding scale. Say 5% ????)

THINK OF CORPORATIONS AS HIRING MACHINES. That's their only job. That's it.

2) Corporations could not lobby for any special favors or consideration. In other words, if the company cannot provide a service that people want, they will have to adjust their business to supply what people DO want, else fail. No longer could companies come to Washington to lobby/ask for assistance. They are on their own.

This way, companies would no longer have a need to be "evil", there would be no advantage for them. In other words, they could focus all their time and resources to building their business and be competitive
( = more jobs. , more tax revenue)

3) The whole idea here is to create a demand for employees. If employees are in short supply, there will be competition between corporations to get them. This translates into higher pay for employees, training, health insurance, retirement benefits, and other perks to keep and make good employees. (Better perks = less dependence on Social Security and Medicare.)

Other thoughts....

If corporations did not have to deal with taxes, then overseas corporations would want to set up business here in our country = more employment for US citizens = more revenue for national security and major multi-state infrastructure.

States would have to compete for employees. In other words, those states that are more corporation/employee friendly would be more successful. This would engender a need for all States and corporations to compete against each other by improving their products, benefits, and productivity.

The dollar would be super strong, because it would represent real value made by PRODUCTIVE work, not debt or unfunded entitlements.

Corporations and employees will still be subject to the law. Environmental and employee protection laws would have to be in effect to prevent cheating the system.

ANY ACTION THAT CAUSES AN UNFAIR ADVANTAGE OVER OTHERS WOULD BE REGULATED.

There should be term limits for regulators:: Congressmen, senators, the president.
Each government job would have a defined and limited responsibility.

Harsh penalties for all cheaters.

Education would focus on entrepreneurship and creativity. Course schedules would be prioritized toward productive work. Laziness would be ridiculed.

Employees should realize that in order for them to be in demand, they will also have to compete against each other. In other words, they would be induced to improve their productivity and support the company to keep it competitive.

Arts flourish in productive societies. Arts are important for engendering creative solutions to current problems.

So..... noodle this in your head a little. I've heard a lot of good ideas from others that could fit into this paradigm and with a little more thought, we could have a society that eliminates much of our human suffering.

Population control? Hmmm.. think about this. If you have a child at age 20, you will be competing with them for your job when you're 44. Or, hows about this?

Eric