My (New?) Pet Economic Theory as a Democratic Socialist in the USA

cross-posted from: https://lemm.ee/post/37346628

This theory starts off with Capitalism as a base with strong government regulations, basically unlimited over-reach and no nominal taxation up front. In terms of politics, perfect democracy or lottocracy to taste.

Companies are allowed to amass wealth as usual, with freedom to innovate.

The kicker: a universal government competitor (UGC) for every novel company. Instead of acquiring nominal monetary taxation, the government takes half of all of the company's physical labor and resources, additionally sharing any patent rights the company owns.

The universal government competitor operates entirely on the back of the existing company, until that company fails, then it will be funded through its own profits, until it fails. Any additional profit gained is used to fund public services and government duties. The UGC is free to set whatever prices it deems appropriate without risk of getting undercut.

I think a key benefit is "no taxes": normal citizens will only pay taxes in terms of paying for products from the UGC while directly receiving a good or service for it in return. Companies will also always be forced to innovate and keep products safe. It will make billionaires difficult to create.

This, like any other economic theory would be difficult to implement. However, I think it might be simple enough that most people could understand it, and attractive as a challenge for thirsty innovators that the masses might find it palatable.

but idk, i just thought it up in the bath