I realize the market is slanted against small startups. I would like to see a better playing field for these companies as I admire risk-takers and innovators in all areas, and this is where I have always found the best work. However the rich make much of their money by investing in these small companies. I hate the rich as much as anybody, but I don’t see how to square this circle.
The capital gains tax has a huge impact on the rate of job creation. This is because more than 100% of net job growth comes from startups. As a whole, companies more than 5 years old are continuously shedding jobs. “Angel Investors” invest capital in startups to pursue capital gains, so eliminating the capital gains tax for those Angels will cause them to fund more startups.
If you criteria is creating small business, lets encourage more immigration.
A 2008 analysis by the federal Small Business Administration found that, across the country, immigrants are nearly 30 percent more likely to start a business than are nonimmigrants., (where most jobs are created). 48% of the small business in NYC are owned by immigrants
Lowering taxes on the wealthy has historically had the opposite effect. Really, Mitt Romney is only paying 15% on his income. If we decrease his taxes does anyone seriously expect him to begin creating jobs? How exactly does that work? Why doesn’t he work? Get a job you lazy loafer.
The wealthy are not the job creators, consumers are the job creators! If a shoe manufacturer has sales slow and the warehouse fills, they lay off workers. Exempting the wealthy from the shared responsibility for our national defense, clean air and water, education, fire, police and infrastructure only serves to shift the cost to the true job creators – the consumers. Sales slow more and the warehouse remains full. No one is hired to make more shoes.
Its not about hating anyone, its about creating a sound economic model.
Lastly, besides being grossly unfair and ineffective, lower taxes on the wealthy appears to have created a system that discourages long term investments and more short term, risky, irresponsible financial planning.
Why not return to the Eisenhower tax rates and regulatory system that is proven success?
These are just debating points.
The fact is that money from investment comes from people with lots of money, and investment creates new jobs. AS I have outlined many many times, $250K in income will probably be swallowed up in consumption, not investment. Most investment comes from those earning over $250K/year, the point at which you get into Obama’s crosshairs and pretty close to the dreaded 1%.
Attacking the people with money will only hurt me, and underemployed person. How can I support it?
voodoo economics:
No wonder America is in trouble! This guys numbers and assumptions are not even correct.
I do not believe you.
My local CVS is very busy and contributes handsomely to the corporation. That’s been great for Tom Ryan.
“[The} Former CVS Caremark CEO Tom Ryan’s $68 million pay package landed him at No. 5 on a new list of America’s highest-paid corporate chiefs.” http://blogs.wpri.com/tag/cvs-caremark/
But about a year ago the store laid off all of its middle-age, mostly Indian women, working at the checkout counters replacing them with machines and one person whose job is to usher customers to the machines.
I won’t go. I insist on getting on a line and being checked out by a person. I do it at supermarkets, too, and if the lines are long I ask a manager to put more people on the registers. They usually do.
If we all did this and made our complaints public, thousands of stores and markets would have to hire back hundreds of thousands of people to check us out. And then those hundreds of thousands will spend their pay, this creating more jobs.
Tom Ryan will do just fine and the rest of us will all be better off.