By Garrett Gruener, Patriotic Millionaire, founder of Ask.com, chief executive of Nanomix, co-founder and director of the venture capital firm Alta Partners
Originally published in the LA Times on September 20, 2010
I’m a venture capitalist and an entrepreneur. Over the past three decades, I’ve made both good and bad investments. I’ve created successful companies and ones that didn’t do so well. Overall, I’m proud that my investments have created jobs and led to some interesting innovations. And I’ve done well financially; I’m one of the fortunate few who are in the top echelon of American earners.
For nearly the last decade, I’ve paid income taxes at the lowest rates of my professional career. Before that, I paid at higher rates. And if you want the simple, honest truth, from my perspective as an entrepreneur, the fluctuation didn’t affect what I did with my money. None of my investments has ever been motivated by the rate at which I would have to pay personal income tax.
As history demonstrates, modest changes in the tax rate for wealthy taxpayers don’t make much of a difference if the goal is to build new companies, drive technological development and stimulate new industries. Almost a decade ago, President George W. Bush and his Republican colleagues in Congress pushed through a massive reduction in marginal tax rates, a reduction that benefitted the wealthy far more than other taxpayers.
We were told the cuts would accelerate business growth and create jobs. Instead, we got nearly a decade of anemic job growth, stagnating wages, declining incomes and high inequality.
The supply-side, trickle-down economic policies of the last decade benefitted people like me, but the wealth didn’t trickle down. So while we did quite well, people who live from paycheck to paycheck didn’t.
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