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Sorry, I wasn't responding directly to your specific suggestion. I agree that a tax stimulus to small companies is at least somewhat more likely to be useful t
by three14 18y ago
Sorry, I wasn't responding directly to your specific suggestion. I agree that a tax stimulus to small companies is at least somewhat more likely to be useful than a stimulus to large companies. A general tax cut, the kind that's more likely to be politically successful, would certainly channel a lot of money into large corporations as well as small corporations.
It's not PC to say this on HN, but I think that startups are also a mixed bag. Exit events are probably as bad for the economy as bonuses at large companies. If you would assume that a company is worth the expected present discounted value of all future earnings, I bet many companies are bought for much more than their value, and the money is then used with the same lack of efficiency as huge bonuses at a big corporation.