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> Why would a person who founded a startup, and put countless unpaid hours into building it, then have to pay for the sale as if it were employee income? What w
by _w1tm 2y ago
> Why would a person who founded a startup, and put countless unpaid hours into building it, then have to pay for the sale as if it were employee income? What would be the incentive for them to have done anything more than be someone else's employee?
I would expect the incentive is the massive payout (even after tax).
If a startup founder would be better off as an employee because they have to pay the same amount of tax then it sounds like it was a bad idea to begin with.
Getting your income through a corporation instead of as a salaried employee is not inherently more valuable for society. We don’t want more startups for the sake of having more startups!
- noduerme 2y agoI don't know. I think we want some people to take risk. Spending a lot of time building something that you don't have any guarantee of being paid from is a risk, but for every 100 which fail, one will succeed in providing jobs and foreign investment. That is, in fact, the concept behind ycombinator in a nutshell. Not startups for the sake of startups, but startups for the greater good. And that means individuals taking risks. Saying that working for existing corporations is more valuable to society underestimates the frequent and obvious value to society of the one-in-100 startup which creates new avenues of wealth for whole sectors of society. A dynamic polity should emphasize that and create more incentives for it - not even for the good of the individuals who do it, but for its own survival.