There’s a few ways to account for it. i mean, if you are doing Net Assets (Assets-Liability), that’s just Equity and having a limit on the total Equity a business is able to carry at specific sizes feels like it’s incentivizing the wrong things.
It’s kind of interesting to see the changes in investment rates that happened when the tax rate dropped from 90% on anything over a million in annual income. People would essentially buy losses (invest in businesses that were struggling) in order to keep from having to pay the government more. So struggling businesses got a little more capital to survive. Simply changing the top personal/corp income tax rate to something draconian at some arbitrarily high amount can have transformative effects on a society. that’s where i’d start.
There’s a few ways to account for it. i mean, if you are doing Net Assets (Assets-Liability), that’s just Equity and having a limit on the total Equity a business is able to carry at specific sizes feels like it’s incentivizing the wrong things.
It’s kind of interesting to see the changes in investment rates that happened when the tax rate dropped from 90% on anything over a million in annual income. People would essentially buy losses (invest in businesses that were struggling) in order to keep from having to pay the government more. So struggling businesses got a little more capital to survive. Simply changing the top personal/corp income tax rate to something draconian at some arbitrarily high amount can have transformative effects on a society. that’s where i’d start.