“…the very rich… are different from you and me.” @JohnTamny

Nov 11, 2017, 05:19 AM

11-10-2017 (Photo: English: Black-and-white photographic portrait of writer F. Scott Fitzgerald and wife Zelda, taken at Dellwood, approximately a month before the birth of their daughter Scottie. Courtesy of the Minnesota Historical Society. Date September 1921 Source Minnesota Historical Society [1] Author Kenneth Melvin Wright) http://JohnBatchelorShow.com/contact http://JohnBatchelorShow.com/schedules Twitter: @BatchelorShow

“…the very rich… are different from you and me.” @JohnTamny

As Ryu explained it in an op-ed recently written for the New York Times, people in his position don’t need a tax break. Ryu’s concern, among other things, is that “four out of every five dollars in proposed tax cuts will flow to the top 1 percent, an egregious wealth transfer to those who least need it.” Oh well, in fairness to the 1 percent “who least need it,” Ryu might acknowledge in a quiet moment that he overstated his case a tad. Implicit in the notion of “wealth transfer” is that there’s a fixed pie of wealth before and after innovation takes place, and that Republicans merely want to shift the wealth to people like Ryu. On its own that’s odd when we consider the disdain among the superrich in Silicon Valley for the Republicans, and their strong dislike for the President (Donald Trump) calling for tax cuts, but it’s also worth pointing out that Ryu’s reasoning is off. Indeed, as he acknowledges through the rise of Guidewire, with wealth creation there’s no “wealth transfer” to speak of. In Ryu’s case, Guidewire achieved stupendous success (2,000 well-paid employees, $500 million in sales in over thirty countries) only after “great difficulty," and yes, "good fortune." Ryu, along with his partners, employees and the investors who made Guidewire possible didn’t have wealth transferred to them as much as their hard work created new wealth. What the talented entrepreneur in Ryu chooses to do with what’s his, is ultimately his choice. Still, Ryu made an interesting point, and it’s one that Republicans focused on the incentive effects of tax cuts would be wise to consider, if only to improve their argument in favor of reducing the tax burden. As Ryu put it, “I have never heard someone say, ‘I would have started a company, but tax rates were too high’ or ‘I wouldn’t have started this company, but then George W. Bush cut tax rates, so I did.’” https://www.forbes.com/sites/johntamny/2017/11/05/marcus-ryu-and-silicon-valleys-self-suffocating-disdain-for-lower-taxes/#2055a0018478