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No question about this. It potentially can help any industry where the healthcare costs are high in relation to other costs, this include heavy manufacturing
by TheCondor 17y ago
No question about this. It potentially can help any industry where the healthcare costs are high in relation to other costs, this include heavy manufacturing where there are pensions to pay. All provided the tax burden doesn't out weigh everything else. If the collective tax rate was doubled, then that will kill the start-up market.
- tptacek 17y agoWhen you talk about tax rates and health insurance, it's important to keep in mind the shadow tax paid in the common case by families and businesses that employ them today. Privately-run health insurance is expensive, and there's an inherent adverse selection problem because coverage is discretionary.
- lsc 17y agohang on there; how come a higher tax rate would kill the startup market? A more complex business tax regime, sure, but you are only taxed on your profits and what you pay yourself. You don't pay much in taxes until your company actually starts making money. Especially considering that capital gains is treated differently (and taxed less) than income, it seems to me like the most advantageous course to take in a time of high taxation is to start a business, and re-invest as much of your profit as possible. Then, at some point sell it and pay capital gains on your winnings. (or perhaps sit on it until tax rates go down a bit.) Now, obviously a high tax rate will cause people to spend less, but that's going to hurt all businesses, not just startups. From where I stand, as a small company, it seems that I am much better positioned to compete on price than larger companies in my market.