That Taxing Issue
February 13, 2012Posted by on
I am still reading up for the Financial Products class this afternoon. It’s never ending reading, and so not appropriate during this past cold and abysmal weekend. So I watched hours of Lie to Me instead.
Anyways, in this article on balance rather than consistency in financial product taxation, the author stated Evsey Domar and Richard Musgrave showed over half a century ago that a heavy tax burden does not discourage risk taking.
It seems counter-intuitive….well actually I take it back, it is counter-counter-intuitive. This reminds me of another article I glanced at yesterday, on taxation of founder stocks (Zuckerberg tax) where the author points out that taxation (preferential tax treatment for entrepreneurs who receive stock/options at the inception of a company, enjoying part of their comp taxed at, not the ordinary rate but long-term cap rate, or even totally escape taxation at the death) does not play an important role in encouraging entrepreneurship, while other (legal) factors are more valued at the beginning, including labor law, market entry threshold, etc. ( frantically digging to find the article) HA here it is. It is by Fleischer.
I still to get educated more.
In the spirit of Valentine’s Day, I want to say Fleischer’s love story is vaguely attainable. For me.