J LouOct 7

RE: https://mastodon.social/@davevolek/115331893716519727

With #taxation, the key is simplicity to prevent loopholes.

It isn’t clear when reforming the US tax code will be feasible with these demonic administrations.

In light of this, we should explore implementing private democratic associations of worker co-ops that use tax-like fees to provide startup capital to new worker co-operatives, buy out capitalist firms to democratize and mutual aid to members.

The worker cooperative legal form doesn’t give the full picture.

#capitalism #anticapitalism

Show threadDave VolekOct 7

@jlou

You might be interested in my advanced co-operative, where profits are distributed between investors, employees, customers, suppliers, and philanthropy.

Each spolus would consider it an honor to pay taxes, for that means it can distribute profits to stakeholders.

https://tiereddemocraticgovernance.org/blog_details.php?blog_cat_id=19&id=387

In this document is also an obligation for each spolu to invest in other spolus.

With spolus paying fair business taxes, we won't need a complex tax code.

Show threadJ LouOct 7

@davevolek I saw that part in the article. I was interested by it. In the model I advocate, profits go to workers. Investors should hold non-voting preferred shares. Allowing some control rights for investors and consumers should happen at the level of federations of worker co-ops. I’ll read more about your model when I get the chance and see where your thinking and mine differ.

My thoughts on corporate income taxes are mixed. The sentiments that usually motivate them are good though.

Show threadDave VolekOct 7

@jlou

Sounds good. The spolu document is available on my TDG blog and my Inventions website---for a free read.

It will be easier for spolus to start or expand, as compared to regular co-ops. Finding capital is a big problem for the co-op movement.

It is a work in progress. It needs editing and a few more concepts to be put in. Any comments from you might cause me to write a few more paragraphs later.

Show threadJ LouOct 7
@davevolek The democratic federation aims to address this practical issue. It offers companies startup capital in exchange for non-voting preferred shares in the co-op and pay a percentage fee the value of the firm’s capital assets to the federation in a manner similar to a Harberger tax. I’d also collectivize land across the federation in a #Georgist style. Leases and land fees would be paid in the federation’s currency, which would have exit and transfer taxes. What are your thoughts on this?
Show threadDave VolekOct 7

@jlou

I think the co-op would have a difficult time raising capital with preferred shares. If I had venture money to invest, I certainly would not buy preferred shares.

The spolu gives investors a minority say on the board. That would be one feature to attract capital.

I did a Wiki-check on Harberger's tax. Details are scant. I cannot comment wisely.

1/2

Show threadJ LouOct 7

@davevolek The democratic federation is the one investing in individual worker co-ops. The democratic federation would be a social purpose corporation that would be required to only invest in worker co-ops and convert any corporation it buys into a worker co-op. The democratic federation would be a larger entity and non-voting preferred shares could even be publicly traded. Yeah the Harberger tax is essential to increasing return on investment.

I read some of what you wrote.

Show threadJ Lou
@davevolek I like the reinvestment requirement idea. It serves a similar purpose to the exit tax idea I mentioned from E. Glen Weyl’s work. Also, the exit tax ensures that there will be further returns to the network besides direct monetary since it will be cheaper for members holding this currency to invest in the federation and avoid the exit tax.
Oct 7 at 7:43pmWeb