Thoughts on Corporate Operations

Corporations are entities formed to exploit the physical and human resources of a community. They provide a means of attracting large amounts of capital to finance large projects. Some are beneficial and some are a detriment to the society that hosts them, but it is not easy to tell which is which because of the myths surrounding their operations.

The myth that corporations exist for the benefit of their shareholders is false; shareholders merely hope to profit from the operation. Corporations exist for the well being of those who control them; the individuals who benefit from the airplanes, three-martini lunches, yachts, season tickets and luxury boxes at sports venues, limousines, chauffeurs and plush offices afforded corporate executives, free of taxation and passed off as business expenses.

Corporation are not taxed like humans and are allowed to become "Too Big To Fail" because, since the inception of the income tax, sophistry and corporate money have successfully influenced our lawmakers.

Corporate taxes are passed on to the consumer. That is why, if corporate tax rates increased as the gross receipts rise, the most predatory corporations would price themselves out of business when they grew beyond a justifiable size. A progressive tax on corporate gross receipts would provide an umbrella that prevents the suffocation of smaller businesses and their employees.

Significantly, a progressive tax on gross receipts would force corporations to fight inflation, which is so destructive for the humans among us.