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 …
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Replying to @paulg
When marginal tax rates were higher, the US put men on the moon, designed atomic bombs, commercial jets, ARPANet, the credit card, the transistor, communications satellites, LEDs, Hypertext, CDs. Technical innovation was financed more by the state/military vs private investors.
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Replying to @kimmaicutler @paulg
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!
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Replying to @AleResnik @paulg
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 …
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Replying to @kimmaicutler @paulg
How I see it: What’s my incentive to stay far from my native Buenos Aires, sacrifice family time for years, to get creamed on the upside? Instead: let me keep my upside and incentivize philanthropy heavily.
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There’s really no need for language like this. There are many great Argentinian entrepreneurs in the US. Given Argentina’s past 70-80 years of dysfunctional populist governance (compared to our recent dysfunctional populist governance) I can empathize with Ale’s govt skepticism.
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