Capital Gains Taxes and Innovation

Incentives matter if you want to create more Microsofts and Googles.


Investment adviser Kurt Brouwer puts in his two cents, via his outstanding Fundmastery blog, about my recent post concerning capital gains taxes and innovation:

One of the most important factors in our long economic boom has been the rise of new companies and new technologies. For example, many of our most prominent industries and companies were fledgling outfits or even did not exist 20 years ago—Microsoft, America Online, Google, Dell, Yahoo, and many more. As those companies have grown and matured, they have thrown off massive amounts of taxes—payroll and income taxes for employees, capital gains on the huge increases in company stocks, sales taxes on products sold, and so on. We live in an increasingly interdependent world, and it is important that we encourage the funding and start-up of the Microsofts, Dells, and Yahoos of the future.