Why a capital gains tax increase would be a massive jobs (and wealth) killer

FEE’s Aadi Golchha writes, “One of the reasons that nearly all high-income countries keep capital-gains taxes low is to help ensure that investors and entrepreneurs are incentivized to take the risk of committing time and resources to relatively risky start-up ventures, typically reliant on the type of scientific and technical innovation that fuels job growth and progress in the long run.

Although startups comprise less than one percent of all companies, they generate 10 percent of new jobs in any given year. https://t.co/KCLzyUUYsC

— FEE (@feeonline) October 22, 2021

According to Census Bureau data, although startups comprise less than one percent of all companies, they generate 10 percent of new jobs in any given year. The Kauffman Foundation's Tim Kane pointed out that ‘without startups, there would be no net job growth in the U.S. economy."

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