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Thanks for setting the record straight on this. I'm Norwegian, and this is exactly what I would say about this. There are many things we do in Scandinavia that

by marvin 16y ago

Thanks for setting the record straight on this. I'm Norwegian, and this is exactly what I would say about this. There are many things we do in Scandinavia that should be copied in the US, but start-up culture and small business is not helped along by the tax system and social services/benefits. In fact, the progressive taxation alone incentivizes everyone to _not_ earn more than about 100000 USD a year (if you work harder to earn more, taxation is about 45% on the marginal income). There are "official" (state-sponsored) investment companies, but they are incredibly risk-averse and never invest in anything halfway radical. Private financing for computer startups is nonexistent.

michael_dorfman 16y ago
Private financing for computer startups is nonexistent. Really? I've never had problem with this. Nor have I felt the tax system has disincentivized my income (which is well into the top bracket.)
- marvin 16y ago
  What sort of startups/work have you been doing? When I'm talking about disincentivizing, I just mean that making the conscious decision of working more seems like a no-brainer. Your personal reasoning behind this may be different, but overall, fewer people will do this if they only get paid for 70-80% of the extra hours than if they get paid for all of them.
  - michael_dorfman 16y ago
    Really? You think there is a linear relationship between tax rates and hours worked? It's never worked that way in my experience, either as an employee or as a founder. As an owner, you don't get paid for hours, full-stop. You get paid for outcomes. I don't know about you, but if the government raised the corporate tax rate by 5%, that would have no bearing on my desire to have my company succeed. The same holds true, ceteris paribus, for my years as an employee. I worked hard (and a lot of hours) because I enjoyed what I was doing, and wanted the company to succeed, even if my income was divorced from the hours worked--as it was, most of the time, as a salaried employee. In other words, I got paid zero percent of the "extra hours", and yet still worked them, gladly, for other reasons. Naturally, YMMV.
rue 16y ago
> In fact, the progressive taxation alone incentivizes everyone to _not_ earn more than about 100000 USD a year […] 100k is a lot. Only people who've seriously lost perspective (or living in areas that have collectively lost perspective and have huge local inflation) think it's not enough. I'm quite happy to pay taxes to support social services. The only thing better would be to equalise incomes so that it wouldn't be necessary…

by marvin 16y ago

michael_dorfman 16y ago

Private financing for computer startups is nonexistent. Really? I've never had problem with this. Nor have I felt the tax system has disincentivized my income (which is well into the top bracket.)

marvin 16y ago
What sort of startups/work have you been doing? When I'm talking about disincentivizing, I just mean that making the conscious decision of working more seems like a no-brainer. Your personal reasoning behind this may be different, but overall, fewer people will do this if they only get paid for 70-80% of the extra hours than if they get paid for all of them.
- michael_dorfman 16y ago
  Really? You think there is a linear relationship between tax rates and hours worked? It's never worked that way in my experience, either as an employee or as a founder. As an owner, you don't get paid for hours, full-stop. You get paid for outcomes. I don't know about you, but if the government raised the corporate tax rate by 5%, that would have no bearing on my desire to have my company succeed. The same holds true, ceteris paribus, for my years as an employee. I worked hard (and a lot of hours) because I enjoyed what I was doing, and wanted the company to succeed, even if my income was divorced from the hours worked--as it was, most of the time, as a salaried employee. In other words, I got paid zero percent of the "extra hours", and yet still worked them, gladly, for other reasons. Naturally, YMMV.

rue 16y ago

> In fact, the progressive taxation alone incentivizes everyone to _not_ earn more than about 100000 USD a year […] 100k is a lot. Only people who've seriously lost perspective (or living in areas that have collectively lost perspective and have huge local inflation) think it's not enough. I'm quite happy to pay taxes to support social services. The only thing better would be to equalise incomes so that it wouldn't be necessary…