Wednesday, February 24, 2010

Why We are here

Have you ever wondered How huge Corporate entities gained control of our lives? Read this Opinion from Robert Reich, someone who I often challenge but whose Intellect I always respect. The Question I must ask, which I have often repeated before, is How can Corporations expect to remain in business if they raise their Prices above a 9% per year price increase limit? I have designed some models which suggest that Consumer enrollment will decline inline with Price increases over a 8-year cycle; this meaning that a 20% price increase will bring a 20% loss of clientele within 8 years. Health Insurers must expect a huge Subscription pressure to be existent within the Consuming Public, and that the replacement Consumers will always be present. It also means that they expect a huge transference between Providers by Consumers, who will lose their Consumption antagonism to Price increases. There is much contention to my thesis, with Many claiming there must be an automatic reduction of the Inflation rate from the increases, but I state that the relationship will hold without the decrease; simply because these huge increases set the Inflation rate in and of themselves.

Spend a little time with this Table. I actually expect there is a little more money to be made by real Accounting procedures utilized as this format indicates, but that it will never be implemented at the real Tax level of IRS seizures. I would be better pleased with a flat seizure scheme like the Alternate Income Tax for Corporations. Here I would suggest a flat 15% tax rate on all Corporations making Incomes higher than a set limit, without resort to any Tax exemptions of any type. All that would be required would be that the Sales were made over the stated limit. Every economist knows that Corporations will only push Taxes unto the Consumers, but with this type of taxation; it only increases the taxable base income. I would set the level of such income at $1 billion per year, and thereby ensure some level of Corporate payment of tax. I would also insist that the liability be based upon American Sales income–that specifically which Americans buy. This both makes the American market less vital to Corporations and speeds World markets, but also speeds normalization of American market prices with World prices.

I will finish my outrage today with this Piece. I do not doubt that people try to spend less when they cannot find the level of employment which they desire. Conditions in the economy, though, work diligently to suppress than expenditure suppression. This means that they extort the funds anyway, if there are any funds left. Notice that there is no indication of Price structure alteration, even though there has been a huge increase in unemployment and underemployment. Tax law and benefits save Business from any necessary response to the potential loss of real revenue which has occurred, leaving Labor and Consumers to do all the suffering. Some Readers may think I am Joking, but this Shift from Business onto the Consumer forestall any real economic impact under the recession; causing a real suppression of a recovery in the short term. lgl

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