Tax Incentives for Good Capitalism!
Democratic capitalism maximizes the creation of wealth by releasing the innovation and productivity of people, and maximizes the distribution of wealth through profit sharing and employee ownership. Congress should legislate favorable tax treatment for democratic capitalist companies paid for by reductions in corporate welfare. With this encouragement, good capitalism will displace the bad capitalism that treats workers as disposable, sacrifices job growth for short-term earnings, and has concentrated wealth in record amounts.
Qualification for this tax advantage includes: demonstrable integrity and meritocracy, profit-sharing and stock ownership plans for all, attrition and retraining instead of lay-offs, CEO base salary less than 35 times the lowest wage, stock grants instead of options with tax consequences for company and recipient, executive bonuses in company stock, no stock sales by executives or directors, reinvestment in growth and payment of large dividends instead of stock buy backs and non-strategic acquisitions, and financial reporting on long term sales, profits, and cash flow instead of quarterly earnings per share.
Workers’ jobs security, wages, and pensions would benefit greatly from this policy.