Call me a counter automation, anti innovation buggy whip proponent all you want, but the bottom line is that big business with global sales are in a bull market while American workers are in a Great Depression. What is the solution to fixing these problems? Simple, tax companies based on revenue per employee — companies that are struggling and have a large workforce need a tax cut while companies that are disruptive by nature and creating shifts toward automation should have to pay a higher tax rate. If American workers are buggy whips, then yes I am outdated!
Look, I know it seems strange to push for taxing companies that don’t need employees more than companies that require actual human workers, but without some type of structural reform our employment situation will only get worse. The business models of the future are so streamlined that they don’t actually need any workers, and this trend is a long term problem for the real economy and for the poor. We can either live in a welfare state, or we can give tax breaks to small businesses based on employment levels. Furthermore, Obamacare will only hurt jobs if small companies have to pay any more money to hang on to employees. From what I see, many businesses are just barely clinging to solvency and most of them are breaking even while just barely able to make payroll…
Why can’t the mega cap corporations of the world with the highest revenue per employee metrics pay a slightly higher tax rate to fund a tax credit to small businesses who are struggling and have thousands of employees yet are barely profitable?
From an investment perspective, creating an incentive to grow via hiring American workers is the only way businesses will take on the risk of hiring people. I know this makes sense to many other people, and I know that I am not alone. Forcing companies to pay health care costs, higher input costs from QE2 and stagflation, and giving mega cap corporations a further competitive advantage makes no sense.
If there is no political will to tax companies based on their contribution to our society and economy (the jobs they provide middle and lower class America) then we should install a flat tax on luxury goods and end income taxes to fund such a program — by creating tax credits for hiring people.
Look, big business is on fire and printing more profits than ever before. Small business, however, is what drives job creation and the strong mega caps are eating the weakest small businesses for lunch. Yes, part of this is innovation, but much of this is structural in nature The legacy costs, health care costs, and higher inflation are only going to make things worse.
Structural reform is utterly important and so is CEO pay in this country. We have two Americas right now and while one of them is in a Bull Market, one of theme is in a Great Depression… This is not a sustainable trend. Debt is a huge issue, but I think a bigger issue is capital allocation — we can’t afford to have a crony capitalist system anymore and it’s time for real change.
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