how should we look at the startups in Scandinavia and other countries with really high taxes?
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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The obvious implication is that there would be more if taxes were lower.
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"This paper considers the taxation of top incomes when the following conditions apply: (i) new ideas drive economic growth, (ii) the reward for creating a successful new idea is a top income, (..)" not surprising results then, do they assume only rich people make startups ?
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Yea this seems to be one big argument with a bit of deadend math for trickle down economics.
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If anything, and if I'm reading it correctly, this strengthens the argument for a flat income tax that has no loopholes or deductions.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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On this I'm with Warren Buffett : tax is nearly irrelevant when evaluating investment opportunities and this also applies to starting up a business
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Buffett is provably wrong; I account for tax when evaluating EVERY investment opportunity, to the extent the tax treatment differs by opportunity
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Top income isn’t the only or even the best motivator. You know more founders than anybody. How many tell you they did it “for the money”?
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Their motivations change. For nearly all, at the beginning, the money is really important. The successful ones, once they start to feel they have enough (usually by selling their own stock in funding rounds), gradually stop caring about it so much.
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