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I think the term you used 'marginal entrepreneur' is appropriate if the tax rate is a significant factor in going forward with a business. As you said, if the

I think the term you used 'marginal entrepreneur' is appropriate if the tax rate is a significant factor in going forward with a business. As you said, if the tax rate was in some ridiculous extreme, of course that would be a factor. But then I'd wonder what kind of country/economy would raise taxes to such a high altitude.

Prrometheus 18y ago
In my old line of work, we whipped up a spreadsheet model to show a new company's potential return on investment before we took the idea to investors. For any given company, there is a tax rate high enough that would have made it non-worthwhile. Of course, we weren't in the web business, so numbers mattered to our investors.
mhb 18y ago
That's the definition of the word "marginal" here. It is axiomatic that the tax rate is the deciding factor for the marginal entrepreneur. If you think it has some meaning dependent on the tax rate, then you're not understanding what marginal means.