>This is the kind of experimental design that would and >should fail an undergrad experimental-design course. And I >really mean that, I'm not trying to make an ideological > >point or condescend to you. This is really bad reasoning.

So, do you know any any IT companies that made it big and created a new market or changed the world or created whole new market segments and are not US-based? Or not? I'm sorry, but I could care less about you reasoning if it has no evidence based in reality.

>The fact that US tax rates have themselves varied over time >and place is counterevidence against your claim! What does >it mean to you if California-with-high-tax-rates produces as >many start-ups as California-with-low-tax-rates? Or what >does it say about California versus Texas versus New York >versus Massachusetts? The actual evidence points towards >Silicon Valley being special somehow rather than a general >effect from tax rates.

Of course Sillicon Valley is somehow special. The same way Los Angeles is somehow special that it is de facto movie and music industries capital of the world, New York is finance capital of the world, Las Vegas is gambling capital of the world, Chicago is commodities trading capital of the world, and some claim New York is fashion capital of the world (heard it from a Parisian fashion designer), etc. You see, once you have friendly business economic environment, all types of beautiful and creative kind of things will happen all over the place. Not only in IT. Again probably theoritcally or academically you can come up with some "evidence" to the contrary, but the simple truth is that if you are serious actor, you will move to LA, if you are serious software developer, you'll move to SF and if you are seriously into finance you'll move to New York. And this wasn't built on 50% or more tax rates my friend. You are serious or you're not serious. With tax rates like this it looks like you're not really serious.

>There's also a huge issue with the phrasing, "Start-ups that >changed the world (innovation) or created whole new segments >of the economy?" To once again reference HPMoR, yes, only >your start-ups are in this new reference category you've >constructed to include only them by definition.

Thank you for admitting that if you want to change the world, you have to move to the US and open company there.

>Sheer nonsense. Merely probably opportunity cost is not on >the actual accounting books; you could have lost your job >the next year anyway. You made $550k and the government got >$350k.

Lol, yeah, or I could win $10M in the lottery. And seriously: you had your classes at College, I had mine. You do add lost opportunity cost in your business plan.

>Besides, if you already made $150k/year, you're ridiculously >fortunate and you have no valid claim to society's pity. You >made 61% of the net profits after a 46% tax rate, and for a >small start-up sale like $1,000,000 a profit to the founder >of $550k is pretty freaking good.

It's not 550k. Deduct the opportunity cost. And then it's mere 250k. Now, add all years of saving, unhappy wife, etc. No, it's not worth it. And how came you don't address the fairness part of the whole thing. The Government is almost like a mafia here that provides nothing, or comes up with some kind of a BS like "sewage, roads" (mafia says that they provide "security services), you know it's BS. And then they take bigger part of the profits than me! Hahaha, I guess I would be really "fortunate" for me then :-). The Government doesn't deserve it. And still it's good in Israel. Now imagine France and me selling it for let's say $3m. The Government would collect 75% from each dollar above $1m. Fortunate me, huh. :-) I can pay 75% of my sweat to the mafia because I sweat all my life trying to do something great vs. sitting as a Government employee from 8 to 5 all my life. Yeah sure, penalize me. I'm sure it has no impact on enterprenuers decisions in France now, lol, Im sure ;-)

Another point is that leaving money with the people and not the government is better for the economy too.

Finally, fortune has nothing to do with it, but people who believe in socialism don't get it.

> http://mappedinisrael.com/ -- Try and stop us.

Your Government and attitudes like your do good job enough in that stopping department (sadly). A little bit like a cancer on overall healthy body of the nation. Quite to the contrary I wish Israeli IT Scene all the best. However, it would be difficult for them to cope with that type of Government and society believing as strongly is socialism as you do. I mean sure you can be a success story. But with this penalizing tax rate forget about creating something more than US-validated clone ideas for the local market. Because with that type of taxation nothing else probably makes sense.