Monday, August 8, 2011

Back to Basics: What is a Profit Cap and How Would it Work?

so what is a profit cap? How would a profit cap be put into place? Here are some of my ideas:

The basic idea/principal behind the profit cap when used in a proletarian sense of the word is pretty self explanatory. It is a program that states that no one individual may profit X amount of money in a given year. And thus a cap is put on profit to where anyone making more many than X amount, their extra money is appropriated into different state/community programs.

After a fiscal year, a business tallies up their net profit after the cost of production, cost of labor, and cost of supplies you come out with you're over all profit (this is the money that ends up in the CEO's, presidents and the other capitalist of the companies pocket). Lets say as an example a company profits 3 million dollars in one year. I believe that $300,000 should be the maximum amount any one person should be able to profit off of any business (obviously there should be a smaller amount of profit after communist construction begins. and none after communism is achieved), because if you cant live off of 300,000 dollars a year there is something wrong with you. Anyway, two thirds of the profit that is left over should be split, one part of the left over profit should go back directly to the workers of that business to be evenly distributed among all the working class employees, no matter their rank. Now there is still a third of that profit left, so that money instead of siting in a rich mans bank would go back into the economy, to provide better schools, more grants for college, and it would help pay for the cost of health care, building streets etc. It is also important to state that in some companies the CEO's and all the higher ups might not take an even 1/3rd of the profit seeing as none of them would be allowed to take home more than 300,00 dollars a year. Keep in mind that this is the excess profit we are talking about so this is after everyone has received their yearly wages/salaries. The capitalist, bosses etc would not be allowed to take more than 1/3rd of the total profit so as to ensure the workers and the community get their fair share. So that would mean there would still be some left over money. That money should be evenly divided up into the workers and communities funds. If the shares of profit reach the point where even the workers hit the 300,000 dollar limit then the rest of the money should be put into social programs.

Now imagine a profit cap of this nature on the oil companies. We could put hundreds of billions of dollars back in the peoples hands and we could destroy debt in just a short amount of time. Since the oil companies wouldn't be able to profit massive amounts of money, they would have no reasons to keep giving us bullshit excuses for raising the cost of a gallon of gas while they are making record profits every year. They would have no incentive to strangle us for the cost of gas because higher prices wouldn't result in the higher profits for the bosses and capitalist.

Our children would get better, free education, all the way through collage. We could start paying firemen, Hell we could pay for universal health care. The money could go towards programs such as anti-malnutrition rations for the poor and needy much like the ones in Cuba and now Venezuela which have done wonders to help poor families get access to meats, dairies and other foods they otherwise wouldn't be able to afford.

Only we, the proletarian class can change the world, lets help the poor, lets give the oppressed a platform. Vote against greedy politicians, and openly advocate for communism. Unless you think capitalism will take care of your community? We all know how much the banks and oil companies have bent over backwards thus far to make our lives easier. The oil companies are giving so much back to our communities that they are only charging $3.50 to $4.00 for a gallon of gas. In most places it takes half of one hours pay per gallon, that's not just crazy, it is criminal. All while the oil companies are recording the biggest profits in history year after year. It is time for a profit cap! And under a socialist government or construction a profit cap should be of the highest priority.

I believe a profit cap would help lessen the class distinction and make the final jump into communism much easier, as one would assume that the further we would advance into communism the less the amount the capitalist and bosses would be allowed to profit.

Written by: Dustin Slagle


  1. Great idea. While sitting on the train I thought about this exact policy. Then thought, surely someone else has thought of this. Most of the world's problems could be solved by adopting this policy worldwide. Appropriate redistribution of wealth to those who need it most.

  2. How about instead of a fixed cash amount as the cap, it could be a margin cap. For example Company A's expenditures must be equal to at least 85% of its revenue. This would be a 15% profit margin cap. If there is excess revenue it will go to state programs or be otherwise returned to the people.