The straightforward way to avoid monopolies from forming and distorting the market is to set corporate tax rates based on market share.
Local (geographic) monopolies handled the same way, local taxes depending on local market share.
How do you determine the right tax rate per market share? Maybe compare prices against less monopolized markets. Tax away the monopoly profits.
I suspect this tax structure will induce perverse behavior somehow. Is it worse than the monopolistic behavior it is preventing?
Devil in the details.
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