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There Are Entrepreneurs Among Us

9/14/2014

 
There are entrepreneurs among us that have proven their ability to create and sustain a business, employing hundreds of people, satisfying customers, and contributing millions of dollars to the economy. 
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If businessmen look at high tax rates and ask themselves if working the many extra hours and risking capital is worth the extra income after a 60% tax rate, a certain percentage of people would say no.
Quite simply, the greater the percentage of income taxed by the government, the less likely it is that the already wealthy entrepreneur will create tens of millions of dollars of economic activity and employ hundreds of people.  All the subcontractors, venders, and companies that supply anything to this entrepreneur has more business as a result of the entrepreneur working.  
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The principal of supply and demand works for labor as well. The greater the number of jobs, the higher the wages are needed for employers to seek out and compete for better employees. 
Conversely, when jobs are suppressed, employees have to compete by offering their labor for less to attain employment.  Small businessmen often go with little to no compensation to keep their businesses alive, however that can only go on for a limited time.  
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Government taxes and regulations sometimes discourage the expansion of successful businesses. Because of excessive taxation, businessmen can be influenced to cut back their hours and employ less people, thus hindering them from their fullest potential and contribution to economic activity.  Any taxes or regulations that carry this effect should be minimized. 
Many would claim that if one entrepreneur does not start a business, then another will. Thus, by not starting a business, the economy does not suffer or lose jobs.  This, however, is an incredibly short sighted conclusion.
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If the disincentive does not dissuade others from filling the gap, we have to consider the businesses that others are not starting elsewhere because of the need to fill this gap.  Every employee working adds one job to economic activity, and every employer adds multiple jobs and economic activity.
​It is important to remember that thousands of people have decided that this entrepreneur has provided service to them better than others, that is demonstrated by them turning over their money to the entrepreneur.  If an entrepreneur dose not start, expand or even stay in business, then service is not done for thousands of people.  We truly have lower quality of lives when we dissuade people from serving others.  
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