Breaking up the Corporations

Today far too much of the economy is made up of large companies, many of them household names. These large companies are known as Corporations. To create an economy that is friendly to the type of society we wish for, we need to dismantle these corporations and in their place promote local business.

Corporations are a vital part of Liberal economics, to which I would add that I am not a Liberal and I have no loyalty to their economic ideas. I would further add that Conservative have their own economic ideas. Ideas that put the emphases on local and small business., instead of large Corporations. But if we want Corporations to be dismantled then how should we do it?

We must first put in place some ground rules:
the aim is not to destroy but to create,
the aim is to dismantle Corporations in a rational manner over time,
the aim is to support local people and communities through local businesses

There are three ways of breaking up the Corporations.

Franchise
A franchise is where by a company recruits sub-contractors to work for it's core business, but on a day to day bases to operate on their own as if they were a private business. Franchises get differing levels of support depending upon the company, generally things like training, contacts and such like. This is a good way to break up the Corporations while still using market principles. It gives an opportunity to local people to get an established business from an established brand. It also means that customers aren't inconvenienced, that the new owners have a chance to learn about the business on the job and for the Corporation to ease out of it's commitment over time.

After a certain period of time, I propose roughly a decade, the franchise arrangement can end and these firms can become independent businesses.

Multiple Locations
The second way is to tax via locations, most retail Corporations, along with many other types of Corporations operate from multiple locations. So we tax the number of locations a Corporation operates from, increasing the amount each year.

Year 1, 0% tax rate
Year 2, Second and subsequent locations taxed at 10% of all earnings
Year 3, Third and subsequent locations taxed at 20% of all earnings
Year 4, Fourth and subsequent locations taxed  at 30% of all earnings
Year 5, Fifth and subsequent locations taxed at 40% of all earnings
Year 6, Sixth and subsequent locations taxed at 50% of all earnings
Year 7, Seventh and subsequent locations taxed at 60% of all earnings
Year 8, Eighth and subsequent locations taxed at 70% of all earnings
Year 9, Ninth and subsequent locations taxed at 80% of all earnings
Year 10, Tenth and subsequent locations taxed at 90% of all earnings
Year 11, Tenth and subsequent locations taxed at 100% of all earnings

As you can see it starts off quite reasonable and over the course of a decade becomes progressively more unreasonable. The aim is not to collect the taxes but to encourage the Corporation to dismantle with it's own rational plan before the Government takes everything. Franchises would not be subject to the multiple location tax.

Single Locations
Some Corporations operate from a single location, sometimes amazingly large locations. In the case of manufacturing companies it may not be good to dismantle such Corporations that operate from a single location. However nearly all Corporations in the service industry could be dismantled.

Year 1, 0% tax rate
Year 2, minimum of 10% tax from that single location
Year 3, minimum of 20% tax rate from that single location
Year 4, minimum of 30% tax rate from that single location
Year 5, minimum of 40% tax rate from that single location
Year 6, minimum of 50% tax rate from that single location
Year 7, minimum of 60% tax rate from that single location
Year 8, minimum of 70% tax rate from that single location
Year 9, minimum of 80% tax rate from that single location
Year 10, minimum of 90% tax rate from that single location
Year 11, minimum of 100% tax rate from that single location

A company that had been reduced to one location by either the Franchise or the Multiple Location schemes would not be dismantled further. The aim would be, as with the Multiple Location tax,  not to collect the taxes but to encourage the Corporation to dismantle with it's own rational plan before the Government takes everything.

Conclusion
Corporations lead and encourage people away from their true loyalty's, away from Tradition, Country and Family. They lead people away from the local economy and insist that they must live in a larger economy. Money becomes more important than anything else, because making money is the goal of all companies. But for the rootless Corporations it does not go back into supporting a peoples traditional customs and ways. Nor does it support their country and it ends by making people value money over family. Non of these things are desirable or worth keeping. By dismantling the Corporations we can increase business ownership, we can increase local economies and we can support our own objectives, all without destroying any of the principles of the free market.

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