RANT: Moat, like around a castle?

Sunday, March 24, 2013

http://www.alternet.org/books/outrageous-david-cay-johnston-explains-how-big-corporations-withhold-your-taxes-and-then?page=0%2C1&akid=10233.1122391.f44_vU&rd=1&src=newsletter813672&t=9

JH: David, you detailed very, very well how we are constantly being ripped off. It’s a death of 1,000 cuts. Why is that? The story that we’ve gotten, for years and years and years, is that we have less regulation in order to spur competition. Ultimately, that competition was supposed to benefit consumers. What’s going wrong?

DCJ: I want more competition. Here’s what really goes on, however. We put up barriers to competition, and in fact, Wall Street has institutionalized this concept. Morningstar, they’re a big financial advice firm. They tell people that they should grade companies and decide whether to buy their stock, based on something called a “moat index.” Moat, like around a castle? A moat index asks, “What barriers has the government erected to keep anybody else from competing against that company?” Indeed, as I show in my book, you could get rich if you invest in those companies that have regulatory moats — where under the name of deregulation, we have insulated them from the rigors of the market. 

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Unfortunately, what we have today is faux capitalism!

The “regulators” are in bed with that which they are supposed to “regulate”.

FDA and Big Pharma is the classic example.

The SEC, FTC, OCC, and all the other bureaucrats are a revolving door with Wall Street.

And, the politicians are like the whorehouse Madam!

Argh!

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“It is a mistake to look too far ahead. Only one link of the chain of destiny can be handled at a time.”- Winston Churchill

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POLITICAL: Corporate Tax Rate should be ZERO!

Thursday, February 2, 2012

https://secure.downsizedc.org/etp/end-corporate-income-taxes/

End corporate income taxes

*** begin quote ***

So why isn’t this done?

Because it’s against the interests of the Political Class.

Think about the typical political demagogue. Early in his speech, he promises to end “tax breaks” to corporations. Then, later in the speech, without any sense of irony, he says there should be “tax incentives” to encourage companies to do certain things.

Of course, the tax incentives he says he wants to create are exactly the same as the kind of tax breaks he says he wants to end, but the demagogue doesn’t want you to connect the dots.

So what he’s really saying is that he wants to end tax breaks to some corporations he doesn’t like (probably the ones that have received bad press) while extending tax breaks to other corporations who will do what he wants.

Politicians couldn’t care less how much revenue the corporate income tax generates. The revenue isn’t the point. The point is the complicated laws, breaks, and loopholes that the politicians can manipulate to enhance their own power and importance.

Your interest lies in the opposite direction. You should fight to ABOLISH THE CORPORATE INCOME TAX, FOR YOUR OWN BENEFIT. The side benefit is that you’ll make the Political Class weaker!

Doing this will also reduce corporate influence in Congress, by removing a major incentive for lobbying. Tell Congress that you want corporate taxes abolished completely!

*** end quote ***

Corporations don’t “pay” taxes; only real people do.

Corporations are a legal fiction that is the logical summation of the Owners, the Employees, the Customers, and Suppliers.

Note that the Owners, may in fact be other corporations like Pension Funds which guard the hopes and dreams of Pensioners.

So, when you tax “corporations”, you really are taxing all these people.

And, you are distorting the free market. Making some choices more expensive than they have to be.

Let’s make the corporate tax rate ZERO.

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