Dan Bongino, my favorite podcaster,
said it best the other day, when he said, “Corporations are nothing
but tax collectors for the government.” When he said that, I
immediately yelled,”Yes!” I am so happy that there is at least
one other person in this world who understands this concept. While
Mr. Bongino may be, to some degree, for corporations, I cannot share
this sentiment. Corporations stand against everything that
conservatism and capitalism both represent. Please bear with me as I
explain my thoughts on this matter.
Broken down in simplest terms, I believe conservatism is based on three principles: no more government than is absolutely necessary, personal liberty tempered with personal responsibility, and being fiscally responsible on individual and group levels. Capitalism is, in my opinion, based on three simple concepts: the acquisition and disposal of private property, the individual's assumption of responsibility in dealing with other buyers and sellers in a capitalist system, and (the most defining feature of the three) the principle of risk and reward. Risk and reward is the most important feature because it is the personal responsibility of the individual capitalist to do the research, and make sound decisions based on that research, before consummating any sale or purchase. The idea, as we all have heard, is that the greater the risk, the potential for gain is greater, and the potential for loss is also greater. It is all about the individual assuming responsibility for himself and bearing the gains and losses himself, without putting any burden on anyone else. That, in my opinion is the purest form of capitalism. Since capitalism requires a person to be free enough to make his own decisions about when, where, how, and for how much a transaction may occur, capitalism is the perfect economic complement to conservatism. They both boil down to personal responsibility. When personal responsibility is hindered, discouraged, or even completely removed from the course of a transaction, the capitalist assumes less risk and also reaps less reward, which makes him no longer a true capitalist. Corporations, while well-intended, I must argue, are not capitalist, nor conservative, in nature.
Broken down in simplest terms, I believe conservatism is based on three principles: no more government than is absolutely necessary, personal liberty tempered with personal responsibility, and being fiscally responsible on individual and group levels. Capitalism is, in my opinion, based on three simple concepts: the acquisition and disposal of private property, the individual's assumption of responsibility in dealing with other buyers and sellers in a capitalist system, and (the most defining feature of the three) the principle of risk and reward. Risk and reward is the most important feature because it is the personal responsibility of the individual capitalist to do the research, and make sound decisions based on that research, before consummating any sale or purchase. The idea, as we all have heard, is that the greater the risk, the potential for gain is greater, and the potential for loss is also greater. It is all about the individual assuming responsibility for himself and bearing the gains and losses himself, without putting any burden on anyone else. That, in my opinion is the purest form of capitalism. Since capitalism requires a person to be free enough to make his own decisions about when, where, how, and for how much a transaction may occur, capitalism is the perfect economic complement to conservatism. They both boil down to personal responsibility. When personal responsibility is hindered, discouraged, or even completely removed from the course of a transaction, the capitalist assumes less risk and also reaps less reward, which makes him no longer a true capitalist. Corporations, while well-intended, I must argue, are not capitalist, nor conservative, in nature.
“But,” one may ask, “aren't
corporations designed to provide benefits to the individual
shareholders based on the assumption of risk taken by merely
investing in corporations? Aren't shareholders merely taking
advantage of the law of large numbers and associating of their own
free will? Aren't the shareholders the ones who assume the risks, and
either reap rewards or bear losses?” I must admit that the answer
to all three questions is, “Yes.” However, using what I believe
are the most basic tenets of both conservatism and capitalism, I
argue that while corporations may appear capitalist in nature on the
surface, they are, in fact, more socialistic, sometimes fascistic, in
their nature.
Currently, the highest rated United States corporate tax bracket is thirty-nine percent of the value of amounts between $100,000 to $335,000, and the lowest is fifteen percent of the value of any amount totaling $50,000 or less. Anything over $18,333,332 is taxed at thirty-five percent, which is commonly known as the topmost tax bracket. If a corporation makes a net profit of, say, $300,000, the United States government takes $117,000 off the top, before any profits are paid as dividends to the shareholders. Think about that. The company pays $117,000 in taxes to the government before any shareholder gets paid. To take it a step further, suppose a corporation rakes in $200,000,000 in net profits. How much does the government get? Take thirty-five percent of that $200 million and one can determine that the government will take $70 million of that $200 million, leaving the shareholders $130 million to split among themselves, provided a dividend is declared and actually paid. It seems the federal government makes out fairly well, does it not? Yet, is it not often the case where big-government advocates deride corporations and call for more corporate taxation, calling for these “super-rich” companies like Exxon-Mobil and others to “pay their fair share?” Heck, looks to me like corporations are already paying more than their fair share!
See, this is how the scam (yes, I call it a SCAM) works. In return for the corporation assuming the form of a separate legal entity and absorbing the personal responsibility that is supposed to be borne by the individual shareholder (as it would be under a truly capitalist system), the corporation pays the government for the right to exist as a corporation. The government, itself, invests no money, takes no risks, regulates by way of fines and fees virtually every aspect of a corporation's existence, and then takes claim to a certain percentage of gains before any of the owners get their bite of the profit pie. Not only that, but the owners i.e., shareholders, have to pay personal income taxes on any dividends paid, and must pay in tax upwards of twenty-eight percent on any gains on the sale of stock in a corporation. In other words, corporations and their owners are subject to a form of double taxation, yet, the money making opportunities can be so great, shareholders continue to let the government extort profits. Corporations are more than monstrous, they are HUGE, and they are a huge business for the United States federal government.
Currently, the highest rated United States corporate tax bracket is thirty-nine percent of the value of amounts between $100,000 to $335,000, and the lowest is fifteen percent of the value of any amount totaling $50,000 or less. Anything over $18,333,332 is taxed at thirty-five percent, which is commonly known as the topmost tax bracket. If a corporation makes a net profit of, say, $300,000, the United States government takes $117,000 off the top, before any profits are paid as dividends to the shareholders. Think about that. The company pays $117,000 in taxes to the government before any shareholder gets paid. To take it a step further, suppose a corporation rakes in $200,000,000 in net profits. How much does the government get? Take thirty-five percent of that $200 million and one can determine that the government will take $70 million of that $200 million, leaving the shareholders $130 million to split among themselves, provided a dividend is declared and actually paid. It seems the federal government makes out fairly well, does it not? Yet, is it not often the case where big-government advocates deride corporations and call for more corporate taxation, calling for these “super-rich” companies like Exxon-Mobil and others to “pay their fair share?” Heck, looks to me like corporations are already paying more than their fair share!
See, this is how the scam (yes, I call it a SCAM) works. In return for the corporation assuming the form of a separate legal entity and absorbing the personal responsibility that is supposed to be borne by the individual shareholder (as it would be under a truly capitalist system), the corporation pays the government for the right to exist as a corporation. The government, itself, invests no money, takes no risks, regulates by way of fines and fees virtually every aspect of a corporation's existence, and then takes claim to a certain percentage of gains before any of the owners get their bite of the profit pie. Not only that, but the owners i.e., shareholders, have to pay personal income taxes on any dividends paid, and must pay in tax upwards of twenty-eight percent on any gains on the sale of stock in a corporation. In other words, corporations and their owners are subject to a form of double taxation, yet, the money making opportunities can be so great, shareholders continue to let the government extort profits. Corporations are more than monstrous, they are HUGE, and they are a huge business for the United States federal government.
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