Wednesday, April 22, 2009

High Taxes and Entepreneurship

Lots of Tories are talking about the new 50% tax rate and how it's going to be a restriction on entepreneurship. I happen to believe that this viewpoint is a pile of steaming horse dung, some might say that this is because I'm an socialist dinosoar who doesn't understand "aspiration" and "wealth creation".

So, instead, I'll repeat a point made by James Kwak, a silicon valley entepreneur and co-founder of Guidewire Software Inc, he's talking about estate (inheritance tax) but I believe it demonstrates the psychology of the entepreneur pretty well:

Like most Silicon Valley entrepreneurs, when I started my company, one of the motivations was the small chance of someday making a lot of money. Back in 2001, none of us looked around the table and said, “You know, I would work really hard at this startup, but since I’m going to have to pay the estate tax if we’re successful, I’m just going to phone it in.”

So, if any budding entepreneurs happen to be reading; Do you think you'll be packing it in simply because if you succeed to the point where you earn £150K you'll end up in a higher tax bracket?

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