Limited Liability Levy
“Tax gross corporate revenues, simply and unavoidably, not net profits, which are easily manipulated.
Tax privilege, not people.”
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2. How does it fit with Compass’ core beliefs of equality, solidarity, democracy, freedom, sustainability and well being?
The underlying principle is that the limitation of liability enjoyed by investors through share ownership in PLCs is a privilege to which most of the benefits flow to the few, at the expense of the many.
For the few to pay for this privilege resonates with several of these beliefs, notably Solidarity and Equality.
3. How does it build the institutions of social democracy, like social groups and collective and cooperative forms of ownership and control?
It addresses the unfair advantages enjoyed by the private sector, and levels the playing field with other sectors.
4. How much will it cost or raise and where will any cost come from?
All corporate taxes, all taxes on dividends, and VAT will be abolished and a simple levy on gross corporate revenues will be collected via the payment clearing system instead.
The economic resources wasted on unnecessary state bureaucracy, large parts of the function of corporate finance and tax departments, private consultancy, tax advice, lobbying and attempts to justify the unjustifiable, will be redeployed towards a National Income payable as of right to all citizens.
5. Which groups in the electorate are likely to support or oppose this measure? Is there any polling evidence you have on this?
Most citizens will benefit from the resulting National Income (which would also be supplemented from other sources, such as levies on land rental values, and carbon use).
There would be considerable resistance from the affected professional classes, and government departments.
6. Is there a place or country where it’s worked? Please provide some information.
It has never been tried.
7. What are the three main arguments in favour/against it?
For: Simplicity; Fairness and Certainty.
Against: for those paid by the hour, rather than the outcome, simplicity, fairness, and certainty are anathema.
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