Friday, October 22, 2010

The key to economic growth?

Carl Schramm of the Kauffman Foundation:
The single most important contributor to a nation’s economic growth is the number of startups that grow to a billion dollars in revenue within 20 years.
If this is true, we need to keep taxes and regulations on businesses to a minimum, to give individuals every incentive to launch new businesses, and to give those businesses every chance to make billion dollar profits.

Update: To put a sharper point on this, Team Obama is currently championing a tax increase on individuals who earn more than $200,000 a year. By definition, a start-up that has enough promise to grow into a billion dollar business over the next 20 years falls directly in the path of this proposed tax increase. Econ 101 says that if you tax something, you get less of it. You do the math.

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