Has anyone called for the elimination of limited liability?

Question

One of the justifications that liberals make for the regulation and taxation of corporations is that corporations are by their very nature government-subsidized enterprises, because the government gives them limited liability status, i.e. it makes it so that even though the shareholders control what the corporation does, they are not personally liable for damages due to what the corporation does, beyond the money they've invested. This is in contrast to other kinds of organizations for which the members/owners would be personally liable if the organization did something bad. So they argue that the corporate tax is not an imposition on an otherwise capitalist system, but rather compensation for an existing government distortion of the capitalist system in favor of corporations.So my question is, are there conservatives or libertarians who agree with the assessment that limited liability laws amount to corporate welfare, and thus call for the abolition of limited liability? After all, they tend to oppose other distortions of the free market system. Note that I'm talking about non-anarchists here; an anarchist would presumably be against limited liability laws, just like all state-passed laws.Any help would be greatly appreciated.Thank You in Advance

Answer 1

The government is not "giving" them anything at all, let alone giving them something to the detriment, exclusion, or at the expense of another. Limited liability is a function of state law and legislation that anyone may avail themselves of and it is a logical and necessary component of the separation of ownership and control, capital and management.