Paulson Plan

[Skip to the end]

Let’s also remember that with a 30% corporate income tax, for example, government functionally owns 30% of all the corporate equity, listed and unlisted, large or small, etc. And if it wants more, for example, it can raise the tax.

This is the ‘direct pipe’ and it can’t be diluted or crammed out.

And government also controls the accounting rules that determine what is taxable and what isn’t, etc. That means the present value of that 30% would be more than of equal to the market cap. of all the corporations combined.

So when government wants more equity for restoring a going concern, it should be aware it already stands to ‘gain’ (reduce aggregate demand, actually) via it’s 30% share.