Our income is under attack from both the right and left. The socialist left wants corporate profits to be restricted with higher taxes while the Trump administration has been intimidating corps to lower prices – both plans mean less income to pay their shareholders. Corporations use their gross income (profit before tax) for capital improvements and research. What remains after taxes is paid out as dividends to the owners (stockholders). Anyone who has common stock – either personally, in trust or in a retirement account – is at risk of losing income when publicly traded companies encounter reduced profits.
Unions represent almost everyone except owners/stockholders of corporations. What might be needed is a STOCKHOLDER’S UNION.
The purpose/goal of this private union (corporation) is to lobby elected officials for fewer government restrictions and champion favorable media. Individuals/trusts/retirement-accounts could purchase stock in this Stockholders Union Corporation as Class A members/owners. Dividend paying corps and investment companies (Fidelity, GM, et. al.) would join as Class B members. Money not paid to lobbyists or for PR, would be invested in dividend paying corps and thus returned as dividends to class A members. In other words, this amalgamation encourages greater profits that generate more spendable income that in turn grows the economy. Everyone wins.
The consequences of allowing government to control our cost-of-living via taxes, tariffs and fees without a unified representation are causing imbalances in trade and inflation. Blanket taxes have a domino effect. Let’s say, for example: Taxes/fees on corporations are raised 5%. To adjust to the new tax level the corporation must decide:
1) Raise prices on its products: If, for example, the corporation is a retailer such as Kroger, the cost of groceries goes up.
2) Reduce capital improvements: Not purchasing newer more economical equipment means those industries suffer reduced income and must lay off employees.
3) Decrease dividends: There will be less money shared with stockholders who will have less money to purchase goods; the economy sinks.
It’s more complicated. The illustrated Kroger would have to raise its grocery prices by 5%, but would also need factor in the 5% increased cost of the goods and services it receives – thus the total increase to the consumer would be significantly more than the initial 5% tax. If Kroger absorbed these increases, they would have to cut dividends meaning less money for their owners/shareholders to purchase….
The American capitalist system functions as a cycle where corporations are encouraged to earn money that will be paid to owners who spend this income that grows the economy. In addition, profits are invested in research and development of new products and services that results in hiring more employees and/or contracting with other companies who will hire extra workers. Everyone wins. When income is forcibly curtailed, consumer spending and employment is reduced – no one wins.
Yes, I know tax money is (supposedly) gifted to the less financially able who will spend that extra income – giving the false belief of boosting the economy, e.g., reality is those recipients don’t hire workers, create new products while reducing the spendable income of corporate stockholders. If you gave one dollar to one million financially unable persons … or $1,000 to a thousand stockholders…who will have the greatest opportunity to create jobs for the financially unable?
Though most large corporations have their own public relations divisions; acting individually they don’t have the influence a combined union of their PR departments would have. To counter liberal and conservative anti-capitalism assaults on corporate America an outside-the-box thinker – Musk, Trump, Bezos… – hopefully will form the STOCKHOLDER’S UNION CORPORATION (stockholderunion.com is available). Count me in for IPO shares!
Chuck Klein, Columnist: American Free News Network
https://chuckklein.com
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