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Or maybe because for every Elon Musk who uses his money to create more opportunities for the market there are more Mitt Romneys who abuse the loopholes and use
by Cookingboy 14y ago
Or maybe because for every Elon Musk who uses his money to create more opportunities for the market there are more Mitt Romneys who abuse the loopholes and use the money for more horses and car elevators.
I love Silicon Valley due to the fact that people here actively CREATE wealth by producing ideas/products/companies with real, intrinsic values, which is a pretty big contrast to many of the folks on Wall Street.
- jacoblyles 14y agoUnfortunately, raising the taxes on the Wall St. guys is going to hit Silicon Valley too. The carried interest rate is probably less relevant for SV than the long-term cap gains rate. California cap gains going up by 12% this year (prop 30, PPACA, and the cliff deal) means that 12% of new capital for Silicon Valley startups is going to be diverted from Palo Alto to Washington.
- justincormack 14y agoAll tax rates are going to go up until the US and CA stop living beyond their means. Its not a matter of left or right or whether that hurts incentives any more.
- prostoalex 14y agoYou're right on the flow of capital. I think the big venture firms will still survive (a lot of East Coast endowment money and foreign sovereign funds), but angel investments will go down significantly, or just rely on smaller rounds, as there's less money to throw around.