Only profits are taxed, and they're only vaguely related to revenue, and both profit and revenue are vaguely related to whether a company is a monopoly or not. Profit is an okay-ish measure of how much a monopoly a company is, but not great. Comcast and Amazon turn profits of ~10 billion. Apple is 60 billion, microsoft is 16 billion. Amazon is much more of a monopoly than either of those, and Comcast enjoys a much stronger natural monopoly as well. The industries are just different sizes and the supply/demand curves are different, and for some reason people are just super willing to pay an absurd premium for Apple products.

A progressive corporate tax still makes some sense, and there's basically no excuse for their taxes being less simple than a citizen's. However active management is still required. Markets are fast and efficient but they are often dumb.

Taking morality out of it for the time-being, taxes serve as an additional barrier to entry for smaller companies; these tech giants have hordes of lawyers and accountants to make sure they pay very minimal taxes (if any). These companies are also multinational, so they can keep money overseas and search for tax havens globally---a choice smaller companies don't have.

The point is: you can give big companies whatever rate you want, but they're in the strongest position to circumvent it, and they will. The better choice is to lower taxes substantially and give the smaller companies a chance to accumulate capital faster, so they can compete.

I agree 100% and have long felt this is the right approach. Basically the bigger you get, the harder it gets to keep getting bigger.

Netflix, Amazon, Boeing, Verizon, these companies are already dodging the regressive taxation we have. How will we enforce progressive taxes?

Taxes don't solve these problems. In your setup, companies would "break up" but only on paper to take advantage of tax code. Outside of papers filed in Delaware no one would even know these were separate companies. Many billionaires often have few 100s LLCs filed in such a complex graph of ownerships that would take days to decipher.

I agree it should be harder the bigger you are, but it's not the tax rate. Right now, FAANGs either run a 0% profit margin, or book their profits to Ireland.

Changing tax rates don't fix either of those.

I think this is an absolutely incredible idea if it could actually be made in a way such that the taxation and other factors could not be easily avoided. But there's one unspoken problem with taxes and particularly corporate taxes.

Large companies are perceived as being proportionally beneficial to the US economy. If you made the US a place that was meaningfully undesirable for corporations, they can leave. And even if these companies did not leave, you would strongly deter new companies. For instance imagine you were able to create your system such that it could not be simply avoided through various typical methods. So big companies really did risk losing up to 50% of their net. How long would it take before e.g. YCombinator started requiring new companies to incorporate in e.g. Hong Kong (or wherever) instead of the US? Perhaps even moving the entire operation abroad.

So even though I think this would be an absolutely incredible idea, I do not think it would work or be meaningfully considered in practice.

I don't think the relationship between monopoly behavior is directly correlated with size. Your solution is a "one size fits all" approach will would probably cause problems for big markets with non-monopoly players.

Wow. I've never seen this solution before and am a fan. I'm a big proponent of taxing negative externalities and this is definitely an easy one.

A million of revenue isn't a lot.