tag:blogger.com,1999:blog-2662054378051338605.post2320084752243585554..comments2023-10-16T05:16:03.208-04:00Comments on No Empty Wallets: The Effects of Taxation on EntreprenuershipMikehttp://www.blogger.com/profile/13189636027060365987noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-2662054378051338605.post-39342497127248019522010-11-30T10:17:12.418-05:002010-11-30T10:17:12.418-05:00Interesting article, added his blog to FavoritesInteresting article, added his blog to Favoritesgeneric cialis 20mghttp://www.agir-galiza.org/noreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-70639149114188366102009-03-10T22:38:00.000-04:002009-03-10T22:38:00.000-04:00Thanks for the comments. See my responses/clarifi...Thanks for the comments. See my responses/clarifications here:<BR/>http://noemptywallets.blogspot.com/2009/03/responses-to-taxes-and-entrepreneurship.html<BR/><BR/>--MikeMikehttps://www.blogger.com/profile/13189636027060365987noreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-27088554874868683732009-03-10T13:15:00.000-04:002009-03-10T13:15:00.000-04:00I disagree with Mr. Manzi's position on marginal t...I disagree with Mr. Manzi's position on marginal tax rates. In my late 50's, I left "corporate world" three years ago to start my own business. Tax considerations were were only minimal and marginal tax consideration was non-factor. Decision was based on anticipated ability to provide needed monthly income, lead a desirable lifestyle, provide a substantive service and generally enjoy what I was about to do.<BR/>KenAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-27775090093819068672009-03-09T17:21:00.000-04:002009-03-09T17:21:00.000-04:00Manzi's totally wrong about the motivation for sta...Manzi's totally wrong about the motivation for starting new business. It has become exponentially harder to build a venture-backed business (return relative to investment) over the last decade. Companies that had barely-working prototypes and no revenue sold for upwards of $500M in 1999; companies that are close to profitability sell for barely their annual revenue in 2009. <BR/><BR/>The expected payoff for the founders has dropped by a factor of 100. Yet has there been a huge drop in the number of people looking for venture funding? Hardly. So a potential 15% reduction in payoff couldn't possibly register.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-66968769602013837242009-03-09T15:13:00.000-04:002009-03-09T15:13:00.000-04:00"substantially greater new business growth""substantially greater new business growth"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-2324463238851118822009-03-09T13:58:00.000-04:002009-03-09T13:58:00.000-04:00It's interesting that you include 1992 as Clinton ...It's interesting that you include 1992 as Clinton year, when he wasn't President, and 2000 as a Bush year, when he wasn't President. If you start with 1993 and 2001 respectively, and take the 5 Bush years which appear on your graph and the first 5 Clinton years, you will see substanially great job growth during the Bush years.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-68746207481611557172009-03-09T12:04:00.000-04:002009-03-09T12:04:00.000-04:00Mark Cuban had a good post about this a while back...Mark Cuban had a good post about this a while back: http://blogmaverick.com/2008/10/23/the-cure-to-our-economic-problems/<BR/><BR/>The line that jumps out at me:<BR/><BR/>Entrepreneurs live to be entrepreneurs. I have never had a discussion with anyone about starting a business that included tax rates. Ever. If anyone that wanted an investment from me made a point of discussing tax rates as an impact on their business, I wouldn't invest in them. Ever.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-52405296506220403772009-03-09T11:20:00.000-04:002009-03-09T11:20:00.000-04:00I am an actual entrepreneur, and marginal tax rate...I am an actual entrepreneur, and marginal tax rates have (and have had) absolutely nothing to do with the decision to start a business. Most pro forma financial statements (used in making a financial plan for a new business) don't even have a "tax" line item. And in fact, most entrepreneurs would still be taxed at the prevailing top marginal rate whether they started the business or worked as an employee for someone else.<BR/><BR/>Another right-wing-scare-tactic blown out of the water by facts.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-61977709870628229292009-03-09T10:48:00.000-04:002009-03-09T10:48:00.000-04:00As someone who has both started a small business (...As someone who has both started a small business (disclaimer, it never took off), invested in a few and run another, I can say a marginal increase in income tax rates has had no influence on my motivations in any of those roles. As an entrepreneur, I was concerned with the very things you mention, making ends meet. While I was aware of the possibility of a payoff several years down the road, it didnt factor in to the calculation very much and where it did, the income tax rate was irrelevant. As an investor, I realized that the investment was a multi-year one, so the tax rate that I was concerned about was long-term capital gain, not income. Only as a manager did the income tax rate affect me, but that was because my salary was high enough, but I cant think of any place where it affected my decisions.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-52421899387024100132009-03-09T10:24:00.000-04:002009-03-09T10:24:00.000-04:00I have started 3 and sold 2 software businesses. C...I have started 3 and sold 2 software businesses. Current tax rates had zero impact on my decision making process. Far more important: Could the business succeed, did I have a realistic chance of selling our services/products, was I willing to make the commitment in time/effort/money to make it successful, was there an achievable endgame? A few percentage points of tax rate really only drove what I took home as profit - with the higher rate, I would, as a commenter said above, look to ways to reinvest in the business instead of taking home everything.Mark Tysonhttps://www.blogger.com/profile/16682557294656844171noreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-84973301392261456552009-03-09T10:12:00.000-04:002009-03-09T10:12:00.000-04:00Manzi only addresses one kind of entrepreneur: th...Manzi only addresses one kind of entrepreneur: the kind he was. I started a retail business. Employed 50 people in 3 locations. Never got rich, but made a living and lived a lifestyle better than employment would have provided. Started it in 1979, in a miserable economy. Tax rates played no role in my calculations.<BR/><BR/>The above charts show net business creation in the hundreds of thousands per year. How many of those businesses were like mine, and how many like Jim's? Which sector employed more people? The animal spirit of entrepreneurship has little to do with 4% differences in tax rates.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-19816977593726037402009-03-09T10:07:00.000-04:002009-03-09T10:07:00.000-04:00Jim,I'm curious as to what constitutes "some of th...Jim,<BR/><BR/>I'm curious as to what constitutes "some of them" in order for your argument to be valid? Mike pointed out in the Census Data that there was very little correlation between the tax rate and the net increase of businesses. From that, I would think that very few entrepreneurs would be effected by the tax rate. Also, what do you think about the other point regarding the increased safety net through health care and education reform offsetting the few that are dissuaded? <BR/><BR/>Mike, I'm glad your second post continued the trend from your first. It's nice to see research and support in blogs when most people just blast their opinions without any factual data to back it up.WiseElderhttps://www.blogger.com/profile/01073962367664640137noreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-44981291531575986182009-03-09T10:01:00.000-04:002009-03-09T10:01:00.000-04:00This comment has been removed by the author.WiseElderhttps://www.blogger.com/profile/01073962367664640137noreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-82201439206329028342009-03-09T09:51:00.000-04:002009-03-09T09:51:00.000-04:00Manzi is a conservative but not completely disconn...Manzi is a conservative but not completely disconnected from reality I find. Of course his venue NRO calls forth a requirement to reinforce a certain viewpoint so this inevitably colors his opinionating. That said he seems to have retreated to parsing in the face of hard evidence that reveals the speciousness of his arguments. I've never started a business, but have run several and know and have known dozens of entrepreneurs and I can't think of one of them with whom I've discussed the reasons they went into business as saying it had anything whatever to do with tax rates. In fact his whole premise smacks of those marginal issues on which conservatives base so many of their arguments eg. millions for marsh mice or a single payer health system can't work because of a few bad anecdotes from Canada. Because the fundamentals of their case are so weak these days conservatives are continually forced to rely on marginal issues to make arguments. It's completely phony and will be the death of them because most people outside the base can figure out it's peripheral.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-26038765375251653102009-03-09T09:36:00.000-04:002009-03-09T09:36:00.000-04:00I would also argue that the higher corporate tax r...I would also argue that the higher corporate tax rate would encourage entrepreneurship, by incentivizing keeping capital within the business and not withdrawing any or all profits for personal income gains.<BR/><BR/>That, to me, is the crux of the argument. My investment in my own business is the best tax break I can get for that business.<BR/><BR/>PaulineAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2662054378051338605.post-68516559296128623932009-03-08T21:41:00.000-04:002009-03-08T21:41:00.000-04:00Thanks for your deatiled comments on my article.I ...Thanks for your deatiled comments on my article.<BR/><BR/>I am an engineer who had started a couple of businesses. I went through exactly the calculus that I described prior to doing so. Not everyone does, but for my argument to be valid not all potential entrepreneurs need to go through the calculation, but only some of them, in order for this to have the argued effect on the margin.<BR/><BR/>I did not say that tax rates are the only thing that will influence these decsions, only that BUT FOR these tax increases that more entrepreneuers would take the leap.<BR/><BR/>Best regards,<BR/>Jim ManziAnonymousnoreply@blogger.com