Cap corporate profits to solve inflation

The solution to inflation is profit caps on major corporations.

The Fed’s reliance on raising the prime rate is too slow a remedy. Government taxation on corporations angers Corporate America, shareholders and what does the government do with withheld taxes anyway?

A reasonable solution is to cap corporate profits at 5% once the rate of inflation passes 3% in a fiscal year. Corporations will now need to watch the rate of inflation if they do not want their profits capped at 5%. A penalty would be imposed if they refuse to follow the rule.

Corporations under this rule would be permitted to earn profits above 5%, that will satisfy their shareholders. Corporations would now be responsible for the rate of inflation. The consumer wins with low inflation. The corporation now is required to push profits above 5% back to lowering costs and prices once the 3% rate of inflation is surpassed.

If one wishes to promote low sustainable rates of inflation, Corporate America needs to be the solution.

Phil Vanderstine

Richland Township