I’ve seen a lot of people in European countries and former European colonies decry the high tax rate as a reason for low entrepreneurship and just accepted it as a good enough reason but looking at the numbers and the reasoning specifically here made me start questioning things.
The marginal rate in NZ is 39%!? That’s LOWER than in California, the land of “serial entrepreneurship”, for anyone with a successful startup. Not to mention the US tax rate doesn’t include a myriad of other small taxes that for some reason are not included in that number. On top of having a higher tax rate the average Californian entrepreneur also has to source extremely expensive healthcare.
It sounds more like an excuse to keep doing what you already wanted to do rather than an actual demotivating factor.
I pay for private healthcare insurance because I want better outcomes than waiting for years to get urgent surgery. I have seen loved ones literally killed by our healthcare system (unnecessary death - not just normal risks of medicine). Our public health system is good when it works but it has some sharp edges. Although I assume poor NZers are better off than poor Californians for heathcare access.
> It sounds more like an excuse to keep doing what you already wanted to do rather than an actual demotivating factor.
I am telling you that it demotivates me. We don't always know why we think things and I don't have to be perfectly rational. You might be right, but calling it an excuse is extremely rude.
The marginal rate in NZ is 39%!? That’s LOWER than in California, the land of “serial entrepreneurship”, for anyone with a successful startup. Not to mention the US tax rate doesn’t include a myriad of other small taxes that for some reason are not included in that number. On top of having a higher tax rate the average Californian entrepreneur also has to source extremely expensive healthcare.
It sounds more like an excuse to keep doing what you already wanted to do rather than an actual demotivating factor.