Untaxing   Part I: Introduction

acknowledgements            [previous]            [next]            part II

Debt should never be confused with capitalism. Without debt you will never have inflation, deflation, unemployment or bankruptcy filings!

Pure capitalism rests on the two pillars of risk and equity. Take away either one of these pillars and the concept of pure capitalism ceases to exist. Debt is a fallacious pillar.


To understand the how and why this $3.5 to $10 trillion colossal tax loss has been overlooked, it is imperative to recognize the root cause. Most law makers and financial people are not consciously aware that without the public company there is no concept called capitalism.

The capital structure, tax policy, and ownership structure of the public company are analyzed from a perspective of several decades of exhaustive inspection. There is no standard definition of capitalism. The lack of a definition is evidenced in the undervaluing of public companies all over the world. Market capitalizations of public companies in the US and 265 other countries (if they have public companies) are shown in this white paper to be less than maximized.

Fundamentally we need to know today what the exact foundation of capitalism is. When capitalism is reduced to a scientific formula in the spirit of physics (e.g. Newton’s Force=ma and Einstein’s Energy=mc2) then we can determine the maximum value of the public company for tax policy and shareholders.

The delivery vehicle of capitalism is the public company. We need to be clear about this fact to understand how and why we have, for the first time, a five-variable formula defining capitalism. These five variables, when related to the public company, rest on two pillars of Risk and Equity.

Take away either one of these two pillars and the concept of pure capitalism ceases to exist and the five-variable formula given later in this white paper cannot be produced. Earnings declared as dividends is the basis for the market value of the public company.

Until the release of this white paper, we have only scratched the surface of capitalism’s ability to produce untold economic power. Let’s not confuse debt with capitalism, as do most economists and accountants. This confusion has brought the US and the world to an unmanageable but reversible debt mess.

Go to (part I) chapter 1: Equity