Thursday, September 11, 2014

A simple way to promote worker owned firms in our tax code

Josiah Neeley ask me how I thought corporations like this one could be promoted through policy.

A relatively simple way would be to extend eligibility for S corporation status to firms with over 100 shareholders, so long as:

1) The majority of shareholders are employees; and
2) The majority of employees are shareholders.

(Of course these conditions could be tweaked, so that the requirements might be two-thirds and two-thirds, for instance.)

Such companies would face no corporate taxation.


  1. That sounds like an absolutely brilliant idea!



"If your approach to mathematics is mechanical not mystical, you're not going to go anywhere." -- Nassim Nicholas Taleb