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by kvz 2822 days ago
> If you are self-funding with organic growth then you have to make sure that you spend all your profits on growth which you should do anyway

In my case I have a mortgage and kids. To make sure we get by, with the high profit tax, there needs to be enough profit left, ergo, I’m not investing as much in the company to leave enough for the government and my family to consume.

I’m sure there are enough people who can get by with very little, and what you say makes sense. Just doesn’t apply to all, and that means on the country scale: smaller pool of people that are willing, and less money going back into growing companies.

1 comments

That's why you find constellations where a wife owns a company and the husband is the manager or vice versa. The manager gets a regular salary onto which he pays regular income taxes. That way, the income doesn't touch the profit tax. It should be the same if your company has various shareholders.