General Discussion
In reply to the discussion: There is not a single business owner in this country who got where they are 100% on their own [View all]GreenMask
(48 posts)So what is the solution? Many of the big businesses - banks in particular - have some sort of implicit or explicit government guarantee behind many of their holdings and loans. The amounts on those far outweigh most individual tax issues. It's those guarantees which shift the money "upwards."
I usually use the term "corporatism" there, and refuse to attribute it to a free market practice, as it's not really allowing those large corporations to feel the effects of failure (unlike smaller businesses, who don't have such guarantees).
If we want to shift money back to regular people, it's either removing those guarantees - which, in a sense, goes against Keynesian thought - or raising taxes on profits.
Of course, there's the right-wing method of removing the guarantees, lowering and simplifying the tax code for everyone, and allowing a more free market to take place, but since the free market is always corrupt...