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I'm in the process of building out my startup - now at 13 employees. Would having 3-5% lower taxes give me an incentive to build out quicker, or change my plan
by mdda 15y ago
I'm in the process of building out my startup - now at 13 employees. Would having 3-5% lower taxes give me an incentive to build out quicker, or change my plan? : NO.
- dhimes 15y agoInteresting. Can you tell at what % reduction you would start to see an incentive?
- mdda 15y agoThe main factors are whether each addition will incrementally add to P&L, and fit with the rest of the group. One key point in my business is that most of our wage costs are variable (we can see the direct P&L impact of every hire : there are no 'hidden' producers), so finding people who can find a niche is the main challenge. The principal benefit of being in the States (compared to Europe) is 'employment at will', so that hiring mistakes can be undone quickly. As for taxes, paying more is a good problem to have (assuming that all your competitors are on a level playing field). OTOH, healthcare costs are a huge burden : It would be far better for my business if they were variable (i.e. taxed as a % of wages).
- maxxxxx 15y agoI would see an incentive for hiring people if I didn't have to deal with health care at all. I think employer based insurance is a huge drag on America's businesses. I would happily pay some percent more in taxes if I didn't have to deal with it.