A Glimmer of Sanity in Silicon Valley
The San Jose Mercury News has finally discovered a tax increase it opposes: the House bill taxing venture capitalists’ “carried interest” profits as ordinary income rather than long-term capital gains.
Before the economic meltdown, venture capital created 10 million jobs and $2 trillion in revenue over a 10-year period. Hello. Why would the president and Congress want to mess with that jobs machine now?
Amazingly, The Mercury News gets it right: higher taxes will certainly discourage venture capitalists from taking the risks needed to create jobs. But wait a minute: Most US jobs are created by small businesses paying ordinary income tax rates, not VC’s. “Venture capital” for your local shop owner is whatever is left in the till on April 16th.
Income taxes are scheduled to rise substantially on January 1, 2011, and must go higher if the president is further indulged his Sisyphean approach to economic stimulus. Any chance The Mercury News editors might similarly analyze the effect of Obamanomics on millions of non-VC job creators?
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May '10
Re: A Glimmer of Sanity in Silicon Valley
Dr. Savage: Any chance The Mercury News editors might similarly analyze the effect of Obamanomics on millions of non-VC job creators?
No. As PJ O'Rourke said, "Eat The Rich."