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> Why can't Europe build amazing high margin software businesses or any hyper growth companies? The regulations are onerous and the taxes are high. Why would a

by wyager 3y ago

> Why can't Europe build amazing high margin software businesses or any hyper growth companies? The regulations are onerous and the taxes are high. Why would anyone take the extreme risks associated with building a high-risk high-reward business when everyone gets in your way and most of the reward upside would just get taken from you anyway?

arcticbull 3y ago
Because if you fail, you're not destitute and without healthcare - while success still leads to a materially better lifestyle. Specifically because the risks aren't nearly as extreme and the rewards are still very good. You really don’t get materially more of your yield taken from you in France than you do in California where top marginal tax rate is over 50%. And that rate clearly doesn’t stop anyone in California. Imagine Steve Jobs going hmmm, I would start Apple but the top tax rate is like 5% higher than it could be, I’m just going back to bed then.
- p1necone 3y ago
  Comparing top marginal tax rates is kinda silly - makes much more sense to pick some "normal" ish salary or salary range (or just your current salary or expected future salary) and compare total percentage taken at that level. The top federal and (California) state tax brackets both start at over 500k, and you'd have to be earning significantly more than that even for it to start affecting your overall tax percentage very much.
- wyager 3y ago
  > if you fail, you're not destitute and without healthcare If an American businessman fails, they just get another job and life goes on. They still make 3-10x as much as they would in europe.
p1necone 3y ago
Why would anyone take the extreme risk of starting any business at all in the United States unless they were already financially independent? Also this idea that taxes are lower in the US is mostly bullshit - once you add together state income + sales + federal + healthcare insurance costs it's not meaningfully different from many European/Australasian nations.

by wyager 3y ago

arcticbull 3y ago

Because if you fail, you're not destitute and without healthcare - while success still leads to a materially better lifestyle. Specifically because the risks aren't nearly as extreme and the rewards are still very good. You really don’t get materially more of your yield taken from you in France than you do in California where top marginal tax rate is over 50%. And that rate clearly doesn’t stop anyone in California. Imagine Steve Jobs going hmmm, I would start Apple but the top tax rate is like 5% higher than it could be, I’m just going back to bed then.

p1necone 3y ago
Comparing top marginal tax rates is kinda silly - makes much more sense to pick some "normal" ish salary or salary range (or just your current salary or expected future salary) and compare total percentage taken at that level. The top federal and (California) state tax brackets both start at over 500k, and you'd have to be earning significantly more than that even for it to start affecting your overall tax percentage very much.
wyager 3y ago
> if you fail, you're not destitute and without healthcare If an American businessman fails, they just get another job and life goes on. They still make 3-10x as much as they would in europe.

p1necone 3y ago

Why would anyone take the extreme risk of starting any business at all in the United States unless they were already financially independent? Also this idea that taxes are lower in the US is mostly bullshit - once you add together state income + sales + federal + healthcare insurance costs it's not meaningfully different from many European/Australasian nations.