Almost everyone I know who started startups wanted to a) make enough that they could work on what they wanted without worrying about money (like $5-10 million) & b) make something cool. None of them would've cared about what would happen to their $50,000,001 dollar when starting.https://twitter.com/paulg/status/1366761772594704390 …
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Replying to @saikatc
The initial, conscious motives of the median founder are not the only ones that matter. You also care about motives for continuing to work 5 years in, unconscious motives (YC got a spike in applications after The Social Network), and the motives of non-median founders.
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I think the stronger point to be made here is not whether people would start companies because of this law but whether people would start those companies in America.. especially if they can start anywhere else in the world..
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Replying to @watchthedais @saikatc
For example, try this thought experiment: Warren's 2% annual wealth tax is a state rather than federal tax. In that case it's pretty easy to imagine that state losing startups as a result.
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Replying to @paulg @watchthedais
This is exactly why something like a wealth tax (or, for that matter, things like universal health care) work better at a national level than state, and why I'm less sure about a state-level wealth tax. Details are important in policy making!
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Replying to @saikatc @watchthedais
The reason it's a useful thought experiment, though, is that it makes it clear that such a tax would in fact influence founders. The question is the power of that influence relative to the difficulty of switching countries.
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For founders who are US citizens by birth, switching countries might not seem appealing. But many founders are not born in the US. Especially now that companies are going remote, it would be easy for them to leave. Or never come to the US in the first place.
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if you're trying to convince me that we need better global coordination in order to collect capital wherever it lies, you're succeeding!
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