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I'm not an economist, but in my opinion a progressive taxation (for employees wages) can be a main limiting factor to this. Ambitions needs motivated employees.
by passerby1 5y ago
I'm not an economist, but in my opinion a progressive taxation (for employees wages) can be a main limiting factor to this. Ambitions needs motivated employees. They need better wages to work harder. But it's really a steep curve after mid-wage, because taxes are _very_ progressive. So ambitions are just not worth trying.
- duped 5y agoCalifornia has some of the most progressive taxes in the US and yet is truly unrivaled in ambition and innovation in business. The taxes don't seem to be harming the ability of companies to pay competitively or citizens to be ambitious. The taxes aren't stopping European companies from paying competitive salaries
- robocat 5y agoI don't buy that argument. As I increase my earnings, more and more is disposable income (beyond the costs of living for my social status). Extra dollars go towards things you want, not the things you need, so there is quite an incentive to earn more even if it is highly taxed. As you raise your income,
- emptysongglass 5y agoAnecdata from myself here but I've recently hit top tax in Denmark. I'm ambitious but have started to feel like it's just not worth it scrabbling for an extra 2 or 3k a month when most of it disappears down the end of a hoover. I don't even know how millionaires who can afford their incredible estates in the countryside do it. My first thought was tax havens but I don't know if that's true. It seems like the entire system is set up to disembowel such ambitions.
- jusssi 5y agoCapitalism 101: you won't get there with your own work. You get there by installing yourself in a position where you take a cut out of work of others, then scale it up.