By John Tamny
A FEDERALIST CASE FOR STATE AND LOCAL DEDUCTIONS
R ockefeller, Vanderbilt, and Phipps always come to mind when political and economic pundits talk up raising taxes on the rich. Why’s that? The answer is simple... These three extraordinarily rich families were the most prominent financial backers of the venture capitalists who created what became Silicon Valley. Too often missed by economists, politicians, and pundits is that the rich have copious amounts of money to lose. That’s why they’re so crucial to progress. While losing $10,000 is very painful to the average investor, the rich have the capacity to lose $10,000 many times
over without batting an eye. That’s why they were so instrumental and remain instrumental in what Silicon Valley was and is today. Since the vast majority of start-up companies go belly-up, only the rich have the means to back such low percentages that, with their successes and failures, power so much advance. Rockefeller, Vanderbilt, and Phipps have certainly come to mind a lot in recent months, but surprisingly it’s while reading columns on taxation by Republicans . Consider one by the Wall Street Journal’s William McGurn... A writer normally at odds with all things Senator Bernie Sanders,
“I am, at the Fed level, libertarian; at the state level, Republican; at the local level, Democrat; and at the family and friends level, a socialist.” Nassim Taleb
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American Consequences
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