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"Why try to start a business when if you succeed, you won't keep that much of the winnings?" Some people start businesses to solve legitimate problems. I suspe
by heurist 11y ago
"Why try to start a business when if you succeed, you won't keep that much of the winnings?"
Some people start businesses to solve legitimate problems. I suspect that higher corporate tax rates would encourage the average Silicon Valley startup founder to seek more fruitful income streams, but people who are passionate about solving real-world problems would still attempt to do so. Furthermore there are people like me who don't work well outside of a startup environment who will pursue startups regardless of the tax rate. I doubt small businesses will be taxed at such a high rate anyway, given that they are the lifeblood of the American middle class. I'd rather have a thousand medium-sized businesses that suppress their growth to avoid higher taxes than ten massive businesses with low tax rates.
- devinhelton 11y agoSee my reply here: https://news.ycombinator.com/item?id=11066875 https://news.ycombinator.com/item?id=11066875
- prostoalex 11y agoFew businesses would suppress growth to lower the tax base. One way to avoid profit (and punitive taxes associated with it) is to expand the business or seek new markets. Amazon, Alphabet and Warren Buffett are fans of this approach.