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- Embed this noticeYou might think the tax rate is 30% and they use the money to build roads (and by roads I mean wars).
In reality, the tax rate is closer to 99% and I'll tell you why:
1. Shareholders can't elect a CEO who is ACTUALLY best at running a company, because they have to elect one who has the connections to politicians that will get the company the contracts to build the roads (weapons).
2. And it's not just the CEO, look at all of the "made up" desk pilot positions. Why are companies paying 200k a year to Lumbergh to drink coffee and mumble about TPS reports? Because Lumbergh went to the Right School and got the Right Connections that they NEED to hire him so that the other guys in the other companies - who also went to the Right School and got the Right Connections - will consider your product to be Enterprise Grade and be willing to buy it.
3. Who decides which are the Right Schools and the Right Connections? The politicians and their infinite money firehose. Wherever they send the government contracts to AUTOMATICALLY becomes the one who everyone needs to be connected to.
4. But it gets worse (of course it does). It's not just the obscene amount of spending, it's ALSO regulation. Sure you can hire people who are GOOD at crossing every t and dotting every i, but regulations are impenetrably complex and in the end, they're subject to the discretion of the regulators. What is this "revolving door" of people moving between regulatory agencies and corporations? It's corporations paying EXTORTION to the political class by hiring them in do-nothing desk pilot jobs. You think the shareholders WANT that? No way.
The end result of all this is that everything is expensive, wages are stagnant, and millions upon millions of people are paid big salaries for nothing more than their political connections.
You're a slave Neo. The tax rate is 99%.