No, high taxes will not suffice for American innovation • Good Assurance

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Another reason to worry less marginal rates is that the taxes collected from the rich are not shipped aboard a spaceship and are not spoiled by the sun. They help support a range of services and benefits, some of which can make innovation more likely. Conversely, a lack of benefits can hinder innovation.

In fact, one of the reasons for the relatively low rate of start-ups in America may be that since most adults receive health care from their employer, they are attached to their daily work. Some economists call this "Locking of entrepreneurship." Universal public insurance could unblock ideas retained by the employer-sponsored health care model. In the same vein, young people may not be trying to start a business because they fear failure in a country without a social safety net. In a recent survey, more than 40 percent Americans between the ages of 25 and 34 said that the fear of failure prevented them from starting a business in 2014, nearly double the number of those who said so in 2001. Higher taxes would probably help this cohort if she did not suffer. for example, to reduce the cost of public colleges, which would, in turn, reduce student debt and help middle-class graduates take risks in the face of a new idea.

Entrepreneurs are not yet born tough; they are born lucky. The majority of young founders who have been successful come from wealthy white familiesand they often have add to the professional relationships and commercial expertise of their parents. Taxing the rich and distributing their income would do nothing to change the networks or the guardianship of wealthy families, but it would reduce the precariousness between families of the middle and lower classes, thus helping unschooled children to become founders without doing much to punish their richer peers.

If Ocasio-Cortez wanted to destroy the American culture of innovation, it would not propose a barely applicable marginal tax rate, which exists in a larger tax code, which itself exists in a policy broader tax system. Instead, it would reduce funding for research, protect employer-sponsored insurance to keep tomorrow's founders locked up in today's boxes, and increase student debt to make it youth entrepreneurship more precarious. Oh, wait.

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Derek Thompson is an editor at L & # 39; Atlantic, where he writes about the economy, labor markets and the media. He is the author of Hit Makers.