Socialist Revolution Via Taxes to eliminate the deficit.
This blog post is to put out there on the interweb, and hopefully spark thought and future discussion, the idea of resolving structural deficit with nationalisation.
The rich who need to be taxed more are a hard group of people to tax, but perhaps if we seize their assets we don't need to try so hard? Currently the rich own the vast majority of production.
We already have taxes on them, but we can tax in other ways - demand from them, through the laws that govern business in the UK a form of corporation tax which is paid in shares.
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All companies each year, must dilute their stock by 1% each year by issuing fresh shares to be given into stewardship of the state.
These shares would give the state a straight profit dividend and would be automatically valued based on the company's revenue. (The company can buy that share back and eliminate it if it wishes too). The state then has a lever where it can reduce or expand its % gain/loss of UK assets by setting the revenue to share price coefficient.
Such a tax mechanism will motivate a range of behaviours that may be beneficial to British industry and the treasury.
If a company wants to maintain a particular % of its stock under its ownership it may instead choose to repurchase assets, but not at the price the government set. Perhaps private shareholders might offer a price just under the governments automatic offer? In that case a British company will recapitalise itself over time which might tend to act against the foreign ownership problem.
Rising dividends to the treasury should eventually balance the books. Over time, the UK state would again have interests throughout the economy. Maximising tax revenue would become more directly about maximising the potential for the economy.
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