to a point,
If three people, say Gates, Allen, and Ballmer decide to simply buy the planet (no dividends, but yes some more employees) and have their cash position grow indefinitely (it was 60bn, why not 60tn) one could theoretically indefinitely accumulate unrealized gains. The effect would be to sequester enormous amounts of capital outside of the tax loop.
Shareholders could demand dividends, they might be unable to overcome the combined interests of three.
So more and more resources pile up in a corner, owned by three, and then their heirs. They do not need to pay higher salaries. They do not need to pay dividends. Certainly they will pay salaries for the employed of the properties they buy. So they invest, but never pay a dividend.
Thismodel does exist, no? REITs I believe run tax free, but they have required distribution thresholds.
It would seem tax free business in the absence f require distribution thresholds would allow a company to own the world. the company would have to be closely held, otherwise dividends would be demanded, but it otherwise is a vehicle for infinitely deferrable infinite capital gains and infinite wealth accumulation ... to three people.
I can't see how you run a country with such a wealth sink outside the tax loop.
On the other hand, in principle I have long been a proponent of zero corp tax. But its application in extreme cases could be a bit much. The entity could have monetary power exceeding the Fed, wild levels of commodities control, whole countries full of viking virgins waiting for sacrifice ... all as long as they don't pay a dividend.
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