Corporations have too much priviledge

Corporations have too much priviledge

by tonytran2015 (Melbourne, Australia).

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(Blog No.xxx).

#corporation.

Corporations have too much priviledge.

To enable rich citizens to take financial ventures to strengthen the economy, societies historically allowed venturers to form corporations to limit to themselves any unpredictable financial losses and to enable those venturers to work collectively as if they were some artificially new single person. The rational is that successful financial ventures contribute to the tax bases of the societies. Rich citizens are encouraged to form corporations with limited liabilities. Any registered corporation then has most of the legal rights of a citizen.

Corporations have now been used for many other intended purposes unrelated to financial ventures. They are used to reduce taxes for their owners as well as to make cultural or political/religious/racial/extremist ventures. These purposes are clearly not in the original justifications for forming the existence of corporations in societies.

1. Entitlement and Rights of a corporation.

A registered corporation has most of the legal rights of a citizen. It can apply for legal protection and can engage in most activities normally reserved for citizens.

2. Duties of a corporation.

A corporation has to pay tax if it makes profits.

The directors of a corporation are responsible for making the corporation working within the limits of the laws of the nation.

3. Excessive priviledge of corporation.

a/- A corporation can pool together the money of its share holders to make the highest bid to buy decisions by politicians. However any accusation of biasness must be deniable.

An example is the pressure by corporation to lengthen the life of copyright from 14+14 years to 120 years, or the life of the author plus 70 years. (https://en.m.wikipedia.org/wiki/United_States_copyright_law : it was significantly extended beyond that, in Copyright Act of 1976 to “Either 75 years or the life of the author plus 50 years” and the Sonny Bono Copyright Term Extension Act of 1998 (also called the “Mickey Mouse Protection Act”,)

b/- A corporation can pool together the money of its share holders to run the campaign for its politicians. Here any accusation of biasness is irrelevant.

Contribution to the US presidential election campaign is an example.

Former President Jimmy Carter said “America has no functioning democracy,”.

Thu 18 Jul 2013
“America has no functioning democracy,” Carter told a meeting of The Atlantic Bridge in Atlanta on Tuesday, Der Speigel reports.

Carter said that Snowden’s revelations had been “helpful,” and said that the US was losing its moral authority in the world thanks to schemes like PRISM. During the meeting, he also criticized the influence of money in US domestic politics, the
increasing partisan divide in Congress, and election-rule manipulation.

https://www.theregister.com/2013/07/18/carter_warns_america_no_democracy_prism/

.

08/06/2015

Former President Jimmy Carter believes that the American democracy has been transformed to an oligarchy. … said:

“It violates the essence of what made America a great country in its political system. Now it’s just an oligarchy with unlimited political bribery being the essence of getting the nominations for president or being elected president. And the same thing applies to governors, and U.S. Senators and congress members. So, now we’ve just seen a subversion of our political system as a payoff to major contributors, who want and expect, and sometimes get, favors for themselves after the election is over. … At the present time the incumbents, Democrats and Republicans, look upon this unlimited money as a great benefit to themselves. Somebody that is already in Congress has a great deal moreto sell.”

https://m.huffpost.com/us/entry/us_7945040?test_ad=taboola_iframe_mw_life

c/- Corporations manipulate copyright laws to stretch them into covering the field of patent laws. Patent rights hold for less than 20 years while copyrights 120 years. This is why software companies have copyrights on their software. Pharmaceutical and biological corporations are also aiming to follow this same route.

American software tech giants owe the existence to this manipulation. The values of software and biological tech giants are in their copyrights rather than in their patents.

Example: Microsoft, Google, Facebook, Monsanto.

d/- Corporations can deal with enemy state without its directors sent to jail or executed for treason. They easily do this by setting up multiple layers of subsidiaries that ends up working for their aims while maintaining deniability for the parent corporation and its directors of ability to control bottom layer corporations.

Illustration example: Corporation A has a joint venture B (49/51) with another corporation in a neutral country. Corporation B then has a joint venture C (49/51) with another corporation from the enemy country.

d/- Corporations have the liberty to transfer huge amount of money among themselves through the purchase of intangible “Intellectual Properties”. There is no way for the government to evaluate “Intellectual Properties”.

e/- Corporations have the liberty to pay directors huge salaries from their incomes. This may be their way of siphoning working capital as well as distributing their taxable incomes to their advage. Foundations (non-profit) corporations may use this to distribute their incomes to their directors.

e/- Corporations can even be foreign owned and transfer profits away while leaving the burden of its operations to the local nations.

This is done by the corporation contracting to buy goods and service at high prices from its “related suppliers” from low tax countries. Doing so make the corporation have no taxable profit while its “related suppliers” make a lot of profit but in other low tax countries. The owners of the corporation are often related to the owner of its related suppliers.

Example: Virgine Australia.

Owners: Etihad, Singapore Airlines, Chinese HNA, Chinese Nanshan Capital, Corvina Holdings Ltd from the British Virgin Islands. Just five foreign shareholders control 90 per cent of the stock.

Current debt: 7 billion Australian dollars.

Employees: 10000 persons.

Requested to Australian Government: A loan of 1.4 Billion Aud.

The latest accounts show $138 million in operating lease payments to related parties in the 2018 year and $268 million in payments for goods and services to related parties.

https://www.michaelwest.com.au/when-it-comes-to-tax-its-virgin-by-name-and-virgin-by-nature/

f/- Corporations can transfer accumulated profits and losses across accounting years to reduce taxes while citizens cannot.

Example

Analysis by the ABC reveals Qantas is not alone — about 380, or one in five, of

Australia’s largest companies have paid no tax for at least the past three years.

https://www.abc.net.au/news/2018-02-14/why-many-big-companies-dont-pay-corporate-tax/9443840

Conclusions.

With outrageous priviledge, corporations are now dominating USA. Citizens have no hope of competing politically against corporations.

Corporations are no more for the improvement of the tax base through increased economic activities but are now used as tools for decreasing tax contributions, forming pressure groups to dominate others.

The next move is a devolution of power from governments to unelected corporations: Security specialists, Private Security Forces to replace Armed Forces Specialists, Police Forces, Private Arbiters/Umpires to replace Judges in disputes between unequal contestants, Think Tanks to replace Government Advisory/Investigation Agencies, private Corporations to replace whole Government Departments such as Welfare Department, Veteran Department, Information Department, Education Department, Agricultural Department, Health Departments, Correctional Service Department.

The future for America may be a form of extreme capitalism where many state functions are delegated to unelected corporations.

In a country where the sole employer is the State, opposition means death by slow starvation. The old principle: who does not work shall not eat, has been replaced by a new one: who does not obey shall not eat. Leon Trotsky

Leon Trotsky (1937). “The Revolution Betrayed: What is the Soviet Union and where is it Going?”, p.241, Mehring Books

From then on there are only speculations:

Owners of capital will stimulate working class
to buy more and more of expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks which will have to be nationalized and State will have to take the road which will eventually lead to communism. Karl Marx

https://www.azquotes.com/quote/652760

The consequences are already known
The basis of bureaucratic rule is the poverty of society in objects of consumption, with the resulting struggle of each against all. When there is enough goods in a store, the purchasers can come whenever they want to. When there is little goods, the purchasers are compelled to stand in line. When the lines are very long, it is necessary to appoint a policeman to keep order. Such is the starting point of the power of the Soviet bureaucracy. It “knows” who is to get something and who has to wait. Leon Trotsky

Leon Trotsky, (2013). “The Revolution Betrayed”, p.88, Read Books Ltd
https://www.azquotes.com/quote/1217371

America and American allies in the World are repeating the failed systems of the past. Nothing has been learned. This is caused by universal failures caused by corporate excesses including in the education system. Someone may have the last laugh [10]:

Instruction in world history in the so-called high schools is even today in a very sorry condition. Few teachers understand that the study of history can never be to learn
historical dates and events by heart and recite them by rote; that what matters is not whether the child knows exactly when this battle or that was fought, when a general was born, or even when a monarch (usually a
very insignificant one) came into the crown of his forefathers. No, by the living God, this is very unimportant. To ‘learn’ history means to seek and find the forces which are the causes leading to those effects which we subsequently perceive as historical events.

References

[1]. https://en.m.wikipedia.org/wiki/United_States_copyright_law

[2]. Copyright Act of 1976

[3]. Copyright Term Extension Act of 1998 (also called the “Mickey Mouse Protection Act”)

[4].https://www.theregister.com/2013/07/18/carter_warns_america_no_democracy_prism/

[5].https://m.huffpost.com/us/entry/us_7945040?test_ad=taboola_iframe_mw_life

[6].https://www.michaelwest.com.au/when-it-comes-to-tax-its-virgin-by-name-and-virgin-by-nature/

[7].https://www.abc.net.au/news/2018-02-14/why-many-big-companies-dont-pay-corporate-tax/9443840

[9].https://www.azquotes.com/quote/652760

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