re: #481 BryanS

I made the claim that highly compensated employees also start companies—and they do.

They do when that high compensation is retained in the form of wealth. If they spent it all already, then no, they don’t. That’s my point. And also, I would really like data, if you have any, on how many companies are started by the highly-compensated vs. those with wealth, or who acquire wealth through a loan.

It probably needs to go higher than it is now, but there is a real effect on economic growth when you cut off an employee’s ability to generate income.

What do you mean by ‘cut off’?

Those with the highest income tax rates tend to be employees rather than the owners of a business they often run.

Well, those with the highest capital gains tax rates tend to be the owners. The fact that we separate that out is part of what confuses this discussion.

Most business owners, and the wealthiest of the wealthy see appreciation in wealth through the increase in value of the company they own.

Yes, well, I see you get the income tax/capital gains tax distinction. I’m not sure why you think it’s relevant, though.

My point is that having a lot of income at the lower levels is important for the formation of new companies, since demand has to be present. Without income in the low and middle class, there is no demand, and it doesn’t matter how much capital is available at the upper levels.