The Untaxing of the United States of America
How taxing capital gains ends the taxation of wages, salaries and profits.
by Paul Douglas Katchings
Business Intelligence Officer, Business Engineer.
All Rights Reserved. May 2011 – February 29, 2012.
The revelation that $3.5 trillion in taxes is lost to the US Treasury due to an ill-defined corporate tax policy completely alters the current debate on various economic issues. These issues include unemployment, deficits, Medicare, Medicaid, Social Security, education, urban infrastructure and the concerns about the US debt ceiling.
In the months and years to come, the amount of lost taxes will exceed $10 trillion if the current tax policy remains in place.
US public companies make up less than 1% of all types of US businesses. Yet the US Treasury collects more tax revenue from the “predictable” capital gains (associated with the public companies) than from direct corporate taxes and all other forms of taxation.
So how could policy makers miss for so long the economic fact that a $0 tax on public company profits increases the public company market values and “predictable” capital gains so much that the huge increase in capital gains taxes permits the profits of companies and the salaries & wages of US citizens to be untaxed?
$300 billion in taxes on US corporate profits suppresses $10 trillion in equity value and costs the US Treasury $3.5 trillion in capital gains tax revenue. This is an absolutely astonishing revelation.
Please pay careful attention to these momentous tax facts. It is advised to drop everything and focus 100% of your attention on this white paper. For citizens and policy makers in particular, this comprehensive analysis explains exactly how the US Federal Government will collect more taxes by way of a simple change in taxing the public company.
Three economics concepts are presented. The first two require re-examination and the third one determines the optimized market value for the public company. This optimization requires a very clear understanding of capitalism and its vehicle the public company. Only then will the public companyʼs ability to produce taxable values be appreciated and applied.
The crux of all economic problems facing the US and every other country on the globe is the lack of definition and knowledge of exactly what capitalism and its vehicle (the public company) are. The reader must unequivocally understand the structure and nuclear fission-like power of the public company in order to see why and how the untaxing of the United States of America is accomplished.