Post 7 of 20: Convert half of corporate income tax to MC shares!

    If thousand-member groups of Filipino employee and managerial masses alone contributed capital for their mega co-op given said employees' low salary rates, the accumulated fund will be no larger than enough for a small local business able to create a few jobs and paper-thin profits for distribution among investors. Since the MC Movt aims to create jobs for over 60 million bottom poor, mega co-ops need to set up groups of large, export-oriented, world-marketing joint venture companies that gain huge profits thru economies of scale.  Each mega co-op therefore needs investments from private and public corporations able to invest multi-million pesos per company.  The target: minimum mega co-op capital at P1 billion ($20M).  On macro view, how may we  'force' the Philippine corporate sector to invest trillions of pesos yearly to our dreamed mega co-op sector?  As in the PITCOS law, we again use the State as redemptive tool thru a CITCOS law:

      ME Infinity Formula 3: 50% CITCOS law: Target: Automatically channel half of corporate income tax proceeds into production instead of the State's historical politics-based 'spend all' tradition.

    Here's the scheme: Local & national government leaders & their millions of supporters [who wish to end mass poverty] with the help of [the corporate sector] conduct political action to effect passage of [a 50% Corporate Income Tax to Mega Co-op Shares (CITCOS) law] whereby [the State requires all companies to invest half of income tax due to MCs of their choice, MC share ownership titles going to taxpaying co.] that result to [more trillions of pesos going to MC capital over the years].  Moreover 'forcing' [top involved corporate management, engineering and techno skills] to serve as [MCs' 'unpaid consultants'] while [the decreased tax rate] plus [the unique Phil. offer of taxes actually earning dividends] attract [thousands of local and foreign investors] to partner with [MCs setting up profitable 'clean & green' JV cos]. The partnerships hence create [JVs managed by top Phil. corporate retiree skills & top 1st World techno talents] that qualify for [trillion-dollar UN/World Climate Change and Millennial Development Funds' green loans] at [60-75% project cost]. The entire system hence creates [millions of jobs for Phil. bottom poor] and [endless quadrillions in wealth for involved masses and cos.] plus [stratospheric rises in tax collections] due to [setup of millions of new taxpaying businesses from large to micro] consequent to [promulgation of the CITCOS law]

    Q1: Why should MC share titles go to taxpayer companies?  A1: Companies who hold such shares will logically help ensure that said investments earn dividends.  They will thus help minimize risk and maximize dividend income by assigning their top managerial, engineering and techno experts to their MCs as unpaid advisers or consultants as needed.  The beneficiary MCs thus acquire top talents with decades-long experiences without spending for premium pay.  Resultant dividend income compensate for said experts' time away from their company.

    Q2: Why should foreign direct investments rise as a consequence of the CITCOS law?  A2: Much of potential foreign corporate investors are discouraged by the Philippines' high corporate income tax rates.  The CITCOS law in effect halves said rates and provides a premium: taxes converted into capital shares that earn profit dividends and go up in market value.  Furthermore, the foreign partner company automatically acquires linkages with Phil. MCs that market products worldwide thru ASEAN Festival Malls, regular sales outlets and various 'sideline' companies set up by some 10M Filipinos worldwide.  Additionally, said foreign partner company obtains a large number of potential suppliers of production materials manufactured by MCs' agroforest factories and industries countrywide.  Lastly, MCs naturally sharing world-scale market intelligence thru surveys of their international outlets will greatly help in said JV partners' product improvement, innovation of new products and services, and scientific or technical R&D.

    Q3: What other mass benefits will the CITCOS law give?  A3: a) Trillions of pesos in corporate income tax each year will automatically go to democratic business production instead of towards politics-based projects that are notorious for their traditional corruption culture; b) The CITCOS law will effectively make elites 'unlikely' allies of the masses, many of whom used to despise them. c) MCs' anti-corruption provision of 30% of largest investors voting on all major contracts as 'individuals' no matter the volume of investments will assuage mass fears of old elites in due time inordinately controlling what should be broad-owned businesses.  d)  'Corporate raider' elites' tendency to gradually buy majority shares in a company for max profits & singular control of operations cannot work when 30% of investors as voters co-manage the target company thru the internet. e) Inability to control a MC or joint venture thru 'corporate raiding' will force elites to invest CITCOS proceeds in scores of MCs which in effect helps to quickly expand the number of MC corporate groups.

      Read the next post which describes trillions more pesos added to mega co-ops' capital over the years thru a law that makes the State part-owner of mega co-ops, enabling government to earn trillions more in tax proceeds and profit dividends each year. (For Android cellphones, swipe screen up & down, tap arrow at left of title, and tap Post 8: Convert Half of Value Added Tax Proceeds to Mega Co-op Shares)

    For Question & Answer procedure, tap Post 19: Time to Act! Help Promote Our Mega Co-op Movement!  For comments: email fermin4megacoops@gmail.com