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And yet it remains one of the top destination for start-ups. Which indicates that getting rid of taxes and regulation (which states/countries do to get more bus
by dx034 9y ago
And yet it remains one of the top destination for start-ups. Which indicates that getting rid of taxes and regulation (which states/countries do to get more business) can bring business in the short-term (companies forming subsidiaries and channelling business) but doesn't help the economy in the long term. If you have the right environment for companies to form, higher taxes don't destroy that. Sweden also appears to be a good example, high taxes and stricter regulation (partly through the EU) and still a very active start-up scene.
- carlmr 9y agoSweden offers more benefits for it's taxes though. I think California is only attractive because of the SV hype.
- dx034 9y agoMost of those benefits are the safety net you get if your startup fails. I think the main benefit for a startup is having similar companies close by.
- carlmr 9y agoSafety net not only if your startup is failing, but also while you're starting out, money to start your startup, amazing public transport, a functioning public education system which gives you employees that don't need the highest pay to service their loans, ... the list could go on for a long time.
- closeparen 9y agoThere is practically zero state-level regulation that could pose a significant challenge to a tech startup, and tech startups are not really in the business of generating taxable profits either.