What if your model takes into account the fact that if income taxes are high enough, startups stop happening? These economists tried it, and found the optimal tax rate is 29%. https://www8.gsb.columbia.edu/faculty-research/sites/faculty-research/files/finance/Macro%20Workshop/toptax.pdf …
-
-
My perspective as an immigrant entrepreneur: If this is this where US innovation is going, I would immediately move with my family to a country with a lower marginal tax rate!
-
An examination of multiple tax level changes in California suggests that wealthy people are deeply enmeshed in the social fabric and infrastructure that generates their wealth and therefore don’t engage in tax flight as much as one would think. https://inequality.stanford.edu/sites/default/files/millionaire-migration-california-impact-top-tax-rates.pdf …
- 22 more replies
New conversation -
-
-
This is a strong point. Think that this is a good argument for not having very high marginal rate since a significant potion of innovation now comes from private investors?
-
a rival superpower openly committed to ones annihilation tends to motivate a people — how does that apply here?
- 4 more replies
New conversation -
-
-
Cold War was a not so little motivating factor for all the examples you give.
-
War has historically been a motivation for high taxation rates.https://www.cambridge.org/core/journals/international-organization/article/conscription-of-wealth-mass-warfare-and-the-demand-for-progressive-taxation/14C10D9E21A194E7AC57971043C4EB0C …
- 5 more replies
New conversation -
-
-
and monopolies
-
Is it financed more today by private monopolies or back then? Bell Labs was forced by consent decree to share its advances royalty free.http://voxeu.org/article/how-antitrust-enforcement-can-spur-innovation …
End of conversation
New conversation -
-
-
Talking about optimal tax without taking into account economic/cultural structural differences is extreamly naive. The idea that you have one number to rule them all across the world is just ridicules. The “right” tax for CA isn’t the right tax for Tel Aviv or London.
-
Are you talking to me or PG?
- 2 more replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.