Let’s unleash the true power of the job creators!

With a net worth somewhere in the neighborhood of $1 billion, venture capitalist Nick Hanauer is very successful at what he does. Among other smart moves, he was an early investor in Amazon.

Like many of his peers, Hanauer has strong opinions about the wisdom of taxing the rich and the importance of what have come to be called “job creators.” Here’s part of what he had to say on the subject in a recent speech (full text available here):

“I have started or helped start, dozens of businesses and initially hired lots of people. But if no one could have afforded to buy what we had to sell, my businesses would all have failed and all those jobs would have evaporated.

That’s why I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is a “circle of life”-like feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring. In this sense, an ordinary middle-class consumer is far more of a job creator than a capitalist like me….

Anyone who’s ever run a business knows that hiring more people is a capitalist’s course of last resort, something we do only when increasing customer demand requires it. In this sense, calling ourselves job creators isn’t just inaccurate, it’s disingenuous.

That’s why our current policies are so upside down. When you have a tax system in which most of the exemptions and the lowest rates benefit the richest, all in the name of job creation, all that happens is that the rich get richer.

Since 1980 the share of income for the richest Americans has more than tripled while effective tax rates have declined by close to 50%.

If it were true that lower tax rates and more wealth for the wealthy would lead to more job creation, then today we would be drowning in jobs. And yet unemployment and under-employment is at record highs….

We’ve had it backward for the last 30 years. Rich businesspeople like me don’t create jobs. Rather they are a consequence of an eco-systemic feedback loop animated by middle-class consumers, and when they thrive, businesses grow and hire, and owners profit. That’s why taxing the rich to pay for investments that benefit all is a great deal for both the middle class and the rich.

So here’s an idea worth spreading.

In a capitalist economy, the true job creators are consumers, the middle class. And taxing the rich to make investments that grow the middle class is the single smartest thing we can do for the middle class, the poor and the rich.”

Discuss among yourselves.

– Jay Bookman

447 comments Add your comment

Butch Cassidy

May 16th, 2012
4:26 pm

In other words, the age old law of supply and demand still exists no matter how low taxes go.

Butch Cassidy

May 16th, 2012
4:27 pm

Kamchak ~ Thug from the Steppes

May 16th, 2012
4:29 pm

We’ve had it backward for the last 30 years.

Yep, supply-side had an expiration date, and like thirty day old leftover tuna salad it’s stinking up the refrigerator.

larry

May 16th, 2012
4:31 pm

If it were true that lower tax rates and more wealth for the wealthy would lead to more job creation, then today we would be drowning in jobs. And yet unemployment and under-employment is at record highs….

But taxes and regulations , strangling small and big business, but, but, but business anxiety …….

Ohhhhh, just blame Obama.

larry

May 16th, 2012
4:33 pm

Until we reverse course , nothing is going to change.

And the Repubs will still play games, like they didnt learn anything last year.

Recon 0311 2533

May 16th, 2012
4:33 pm

Jay, loves to find these wealthy Democrats who’ll spin the party line.

Matti

May 16th, 2012
4:33 pm

I like this guy!

But I predict Job Creationists will come out strongly against his statements. Too many provably-true assertions demand a sharp, rhetoric-filled rebuttal with yammerings of “wealth envy,” “handouts” and “punishing hard work.”

Fred ™

May 16th, 2012
4:33 pm

Butch Cassidy

May 16th, 2012
4:27 pm

First!!!!!! :)
+++++++++++++++++++++++++++++

Crap, all that means is you were stalking Jay……..

Which really is kinda like stalking someone’s mom…………

http://www.youtube.com/watch?v=4WuQ0HlwlqE

Fred ™

May 16th, 2012
4:35 pm

Recon 0311 2533

May 16th, 2012
4:33 pm

Jay, loves to find these wealthy Democrats who’ll spin the party line.
+++++++++++++++++++++++++++++++++++++

And you love keeping your head firmly inserted in your ass as you quote Rush and Neal………

Granny Godzilla - Union Thugette

May 16th, 2012
4:37 pm

I am Spartacus

I am a job creator!

Recon 0311 2533

May 16th, 2012
4:41 pm

“And you love keeping your head firmly inserted in your ass as you quote Rush and Neal………”

I don’t listen to either one you stupid $hit. You really do try to keep your nose planted where the host of this blog sits down, don’t you. Evidently he once banned your sorry butt for trying to pick fights, he should do it again.

jm

May 16th, 2012
4:41 pm

Facebook Co-Founder May Gain Choosing Singapore Over U.S.

http://www.bloomberg.com/news/2012-05-12/facebook-co-founder-may-gain-choosing-singapore-over-u-s-.html

oops. guess this Jay blog post is already toast :)

Granny Godzilla - Union Thugette

May 16th, 2012
4:41 pm

Damn it would have looked cool if I had got it right….

Joe Hussein Mama

May 16th, 2012
4:43 pm

Who consumes more food, cars, gas, movie tickets, clothes, new cars, Christmas presents, cell phones, lawn mowers, pet products and alarm clocks?

One dude who grosses a million bucks a year? Or twenty people who gross $50K a year apiece?

More consumption = more economic activity = more robust and growing economy.

Even our conservative friends and associates should be able to understand this.

Kamchak ~ Thug from the Steppes

May 16th, 2012
4:44 pm

Facebook Co-Founder May Gain Choosing Singapore Over U.S.

Going Galt?

Good riddance.

Joe Hussein Mama

May 16th, 2012
4:44 pm

jm — “oops. guess this Jay blog post is already toast”

He’s still going to get SLAMMED by the exit tax. His capital gains will be shielded, but he’s going to be taxed on the current value of his assets. You don’t get out of US citizenship for free, no sir.

jm

May 16th, 2012
4:45 pm

taxing the rich, as explained ad infinitum, will not fix the deficit. won’t put the least dent in it.

It’s like depending on a gnat to swallow a whale

Granny Godzilla - Union Thugette

May 16th, 2012
4:45 pm

The facebook co-founder…..

good riddens…

and may the door not hit ya’ where the ggod lord split ya’

THAT SAID…

Nick is not saying anything that the majority of posters with sense have been saying since this debacle began.

It is simply truth. It is common sense.

jm

May 16th, 2012
4:46 pm

JHM – he will save $ on the valuation – about $70million in avoided tax, even though the exit tax does exist

bone up on the issue

Recon 0311 2533

May 16th, 2012
4:46 pm

jm, Singapore is a great place to visit but if you live there they’ll tax you to death. Very expensive but I like the city/country.

Jay

May 16th, 2012
4:47 pm

You’re welcome, Granny.

jm

May 16th, 2012
4:49 pm

Recon – obviously Saverin is moving there to pay more tax…. nope. He’s moving there to save enough money in taxes to buy 350 average priced atlanta homes

too little time

May 16th, 2012
4:49 pm

Note also…

1) he is making the case that stimulus does not work. Taking money from the pockets of taxpayers to fund government spending results in warping demand.
2) he is making the case that the Bush tax cuts ARE beneficial in that they put more disposable income in the pockets of the middle class.
3) taxes, in general, are bad. Government spending (vs. consumer spending) distorts the market.
4) underwater mortgages… which hit the middle class the hardest… will remain a problem for the economy for a long time.
5) we should be working the get the middle class spending. Food stamps, medicaid, Obamacare, earned income tax credits only help a small portion of the middle class (which I am going to guesstimate is a family of four earning $35k-$200k). More spending in government safetynets will not help.

Im a conservative, and my biggest beef with what this guy says is his “solution”… that government should be the instrument of redistribution of wealth, rather than the means to make the middle class more successful. Most middle class people would rather have a higher salary/lower taxes than a kickback from the government from some billionaire.

Patrick

May 16th, 2012
4:49 pm

Wow!

Nick Hanauer summed up the entire situation better than anyone else ever has!! Logical, precise, and obvious (to anyone except the GOP).

Joe Hussein Mama

May 16th, 2012
4:50 pm

jm — “JHM – he will save $ on the valuation – about $70million in avoided tax, even though the exit tax does exist”

I’m aware of that. He’s not going to be subject to any capital gains tax, but his assets have to be marked to market and treated as if he sold *everything* in his estate. I don’t know how his Facebook holdings will be treated, but I suspect the IRS will value them at the IPO price. Those holdings alone will likely cost him millions, though his capital gains will no doubt be taxed in accordance with the laws of wherever he’s domiciled when he sells the shares.

“bone up on the issue”

Same to you. And read what I *actually* wrote sometime, whydoncha? :D

josef

May 16th, 2012
4:51 pm

This is something even an economics simpleton like myself can understand. Duh.

Stonethrower

May 16th, 2012
4:51 pm

US Senate Millionare Club…….the real job creators……….not!

Fred ™

May 16th, 2012
4:53 pm

Right Del, you don’t listen to them. It’s just COINCIDENCE that you echo their every word. I get it.

Why can’t you open your and and learn? Let go of the hate, the fear, the fear of change. Look at what has worked and what hasn’t. Life is NOT all black and white Dellie boy. There are shades of grey. Democrats actually DO have some good ideas occasionally and Republicans CAN be wrong………… oh the horror of that thought.

You make the bunnies cry Dellie, you really do.

Kamchak ~ Thug from the Steppes

May 16th, 2012
4:54 pm

Most middle class people would rather have a higher salary/lower taxes than a kickback from the government from some billionaire.

Hilarious.

Fred ™

May 16th, 2012
4:55 pm

We have friends in Singapore. It’s not such a great place to live they say………

JamVet

May 16th, 2012
4:55 pm

We’ve had it backward for the last 30 years.

Duh, no sh*t.

You’d have to be a guppy Republican to contend otherwise…

All Hail Trickle Down Ronnie!

And while you’re at it, sycophants, why doncha kiss Donald Combover’s ample rear end?

Maybe he’ll get you a job!

Jm

May 16th, 2012
4:55 pm

Jhm

He’s renouncing citizenship pre IPO meaning he can use a private market valuation and not the ipo price

Savings: approximately $70 million

Joe Hussein Mama

May 16th, 2012
4:55 pm

Does Saverin have citizenship in Singapore?

JF McNamara

May 16th, 2012
4:57 pm

This makes sense, but the rich want to get richer. That’s why they spend so much money on elections and campaigns to keep the status quo. Their goal is not to ensure the collective well being. It is to get richer by any means necessary.

If you are not getting rich, it’s because you are not good enough or not working hard enough. No matter what the environment, the cream rises to the top. That’s good old American selfish capitalism, Right?

Redneck

May 16th, 2012
4:59 pm

THANK YOU GOD……This guy gets it. What built this country is the middle class buying and what will save this country is the middle class. Stop with the rich people giving me a job. No one person creates jobs. The people who buy, create jobs and right now nobody is buying cause wages are low or not there. Now, when you start buying Made in America (Union made) you build a better more prosperous America.

Joe Hussein Mama

May 16th, 2012
4:59 pm

Jm — “Jhm He’s renouncing citizenship pre IPO meaning he can use a private market valuation and not the ipo price”

My understanding is that in high-profile cases like Saverin’s, the IRS is reluctant to trust private market valuations and reserves the right to review — and *reject* those valuations. If the private valuation looks hinky or unreasonably low to the IRS, Saverin might find his assets in the US frozen while the IRS sorts things out.

I’d say that Saverin’s quickest and safest bet, especially given how close the IPO is to actually happening, would be to not get greedy and simply accept the IPO valuation. There no way, IMO, that the IRS would question that.

DebbieDoRight - A Pro Gay Rights Loving, Anti LimpBalls Hating, Feminazi!

May 16th, 2012
5:00 pm

Even our conservative friends and associates should be able to understand this

Wanna bet?!

Common Sense

May 16th, 2012
5:01 pm

Ahhhh…socialist day dreams…..

Fred ™

May 16th, 2012
5:02 pm

Joe Hussein Mama

May 16th, 2012
4:55 pm

Does Saverin have citizenship in Singapore?
+++++++++++++++++++++++++++++++++

I’m not sure but he’s not a native American anyway. He’s a Brazilian who became an American citizen. Kinda like Newt. Once you get through the first several divorces and affairs, it marriage becomes kinda meaningless.

Is it any wonder he’s a Republican hero? A non native who makes a tons of money and doesn’t want to pay taxes and turns his back on America.

Mr_B

May 16th, 2012
5:02 pm

“taxing the rich, as explained ad infinitum, will not fix the deficit. won’t put the least dent in it.’

No, it won’t, but it’s a start. We also need to cut what we don’t need, and what isn’t working. And we need to enhance revenue across the board so we can pay for a lot of the stuff we’ve already bought.

A good place to start would be ending the fiction that income earned from capital gains is somehow less valuable than money earned by selling goods and services, or by personal labor.

Fred ™

May 16th, 2012
5:04 pm

LOL Isn’t it funny how the Republicans love non Americans (Ayn Rand), drug users, and the false notion of a “free market.”

When they spout any of those three above you know they are idiots……..

Jm

May 16th, 2012
5:05 pm

Obama says no spending cuts

Bad Obama

barking frog

May 16th, 2012
5:05 pm

The truth will out. But the
producers must have the
ability to fill demand which
usually
requires financing from the
government even though
acquired through a bank.

DebbieDoRight - A Pro Gay Rights Loving, Anti LimpBalls Hating, Feminazi!

May 16th, 2012
5:06 pm

Heard this on Boortz – Interesting. Election year politics at its best:

Obama budget defeated 99 -0

President Obama’s budget suffered a second embarrassing defeat Wednesday, when senators voted 99-0 to reject it.

Coupled with the House’s rejection in March, 414-0, that means Mr. Obama’s budget has failed to win a single vote in support this year.

Republicans forced the vote by offering the president’s plan on the Senate floor.

Democrats disputed that it was actually the president’s plan, arguing that the slim amendment didn’t actually match Mr. Obama’s budget document, which ran thousands of pages. But Republicans said they used all of the president’s numbers in the proposal, so it faithfully represented his plan.

Sen. Jeff Sessions, Alabama Republican, even challenged Democrats to point out any errors in the numbers and he would correct them — a challenge no Democrats took up.

Spending towards Prosperity

May 16th, 2012
5:08 pm

I love how you keep telling yourselves because you consume you are the reason for all things good.

How delusional can you get?

Yes you create jobe because you “consume”. You can also break windows, flatten tires and trash the roadways.

Let the job creation begin!

Johnson

May 16th, 2012
5:09 pm

0 in favor, 99 opposed

Jm

May 16th, 2012
5:09 pm

Jhm

Of course the irs and state dept are going to audit this, but the reality is he can legally and legitimately use a pre market valuation

And he’ll have plenty of lawyers to help him defend his case

JamVet

May 16th, 2012
5:10 pm

Yet more proof that the Republican Party IS the problem.

A bunch of demented mice rats dancing behind their job creating,1% Pied Pipers.

This one never gets old…

http://tinyurl.com/clz9rxf

Joe Hussein Mama

May 16th, 2012
5:11 pm

Jm — did some quick checking and I see what you’re getting at.

I was operating under the assumption that the renunciation date was this week, but it was apparently back in September. The amount that Saverin has saved (estimated $67M by several sources) is based on the difference between the estimated value of his shares in September and the IPO strike price.

Fun discussion, though. I bet a lot of people don’t realize what a big bite Uncle Sam will take out of your hiney if you decide to renounce your US citizenship. :D

eddy

May 16th, 2012
5:11 pm

Jay the internet is full of articles that support ALL of your points of view on any subject. Likewise, there are also articles which refute ALL of your points of view….so, let’s not hold this guy’s view out as the answer to job creation. It does support your point of view however.

If the billionaires and millionaires bitch about paying so little in taxes, they all have free-will to send the government a check at any time for what they deem to be their fair share. Do you have a count of how many have voluntarily sent in their extra-fair share? I’d say the count remains at 0 and will for the foreseeable future. Spare me the pontificating.

Paul

May 16th, 2012
5:11 pm

Hint to those who support the ‘job creator’ dogma: calling someone names is not an effective counterargument, no matter how clever you think it makes you look.

If anyone has credentials, if anyone can say ‘I’m successful because I understand the capitalist system” it’s venture capitalist Nick Hanauer He’s stuck around, invested in many companies and has reaped the reward over the years – a far cry from the one shot out of the box twenty-something with one score who wants to take his winnings and leave.

So c’mon, orthodox promoters, what is it Mr. Hannauer doesn’t understand? Or is he a socialist in disguise? A secret wealth redistributionist? Or is he correct and you won’t consider an opposing viewpoint might be right?

Bet the guy never gets invited on Hannity.

Jm

May 16th, 2012
5:12 pm

Frankly america is a bad place to do business relative to many other countries nowadays

Joe Hussein Mama

May 16th, 2012
5:12 pm

S. T. Prosperity — “I love how you keep telling yourselves because you consume you are the reason for all things good. How delusional can you get?”

if you’d like to try to refute it, then have at it. However, I think you’ll find that coming in here and calling the regulars “delusional” isn’t going to help your ideas get a very warm reception.

Kamchak ~ Thug from the Steppes

May 16th, 2012
5:12 pm

I love how you keep telling yourselves because you consume you are the reason for all things good.

No, what is being said is that consumers are the reason for driving a consumer based economy, “all things good” doesn’t enter into it, sport.

How delusional can you get?

hewhoasks

May 16th, 2012
5:13 pm

“Supply side” was never more than propaganda.

It’s not the taxes collected from the rich when you “tax the rich” that reduce the deficit, it’s the added spending by the non-rich, whom you relieve from part of the tax burden. The economy expands. That’s the same as Keynesian stimulus, except instead of going into debt to finance the tax cut for the spending class you shift taxes from them to the rich. The “supply side” propaganda was crafted to give a reason for reducing taxes on the rich instead of on the non-rich.

When Eisenhower was president the top income tax bracket rate was 90% and workers were mostly well paid, largely because of unions. It’s been downhill since. Downhill for the non-rich, downhill for the country as a whole.

Brosephus™

May 16th, 2012
5:13 pm

That’s why I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is a “circle of life”-like feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring.

“If do right… no can defense”

–Mr. Miyagi

Matti

May 16th, 2012
5:14 pm

“taxing the rich, as explained ad infinitum, will not fix the deficit. won’t put the least dent in it.’

Eliminating our deficit will not magically solve all of our other problems either. Won’t even put a dent in them. While doing so would likely enable the government to, at long last, significantly address our crumbling infrastructure, failing educational systems, and fossil fuel dependencies (while creating tons of jobs in the process), the people who adamantly oppose doing these worthwhile things now will still be adamantly opposed to doing them in the future, when this magical utopia of non-deficit dawns.

Paul

May 16th, 2012
5:15 pm

eddy

“Jay the internet is full of articles that support ALL of your points of view on any subject. Likewise, there are also articles which refute ALL of your points of view….so, let’s not hold this guy’s view out as the answer to job creation. It does support your point of view however.”

Then I’m sure you’ll have no problem at all in presenting an effective counterargument.

Your turn.

Doggone/GA

May 16th, 2012
5:19 pm

Nothing different from what we’ve been saying here all along!

pogo

May 16th, 2012
5:19 pm

Another desperation piece by Jay. Hanauer has been for many years a major contributor to the Democratic party. Whatever his claimed party affiliation, the fact that he repeatedly gives large sums of money to the democrats makes his argument about taxing the rich pretty much irrelavent. It just exposes him as just another totally disconnected uber-rich bleeding heart liberal in the same league as the Hollywood crowd who really doesn’t have a clue what the middle class is all about or our trials and tribulations. Damn Jay, you couldn’t find a better example to try to justify Obama’s (and yours) “tax the rich and everything will be just fine” campaign strategy? And several on here today talked about Romney and Bain. If I were you, I wouldn’t go there. Obama is as much or even more so in bed with big money than Romney ever was. Jay talks about cutting spending but it is always in some generic form when he speaks of this. What are the specifics of those things that you “know” that we must cut Jay. What are they? Defense and what else? I’m for cutting them all, are you? Taxes must go up for everybody, not just the rich because taxing just them isn’t going to even dent our deficit. Of course, we have so many people out of work now ( the real un-employment rate is around 10.6%) that there aren’t many workers to tax anymore, are there?

Brosephus™

May 16th, 2012
5:19 pm

Fun discussion, though. I bet a lot of people don’t realize what a big bite Uncle Sam will take out of your hiney if you decide to renounce your US citizenship.

Uncle Sam gets really upset if he thinks you’re renouncig just to avoid taxes too. Funny how people are holding that dude up as some kind of hero when all he did was use America to make his fortune and turn tail when it was time to feed the cycle…

Keep Up the Good Fight!

May 16th, 2012
5:21 pm

Hmmm…. wonder why none of the “rich are the job creators” devotees have shown the premise to be wrong by demonstrating the country awash in jobs……….oh wait, extreme wingnut belief does not equate into reality.

JamVet

May 16th, 2012
5:22 pm

taxing the rich, as explained ad infinitum, will not fix the deficit. won’t put the least dent in it.

I have always found this to be one of the most sophist and inane of conflated positions to take.

It is like saying why bother putting criminals in jail? After all, crime is still rampant in this country. Especially white collar crime.

What?

Oh?

Justice?

I see.

That word very seldom enters into Republican vocabularies…

Jm

May 16th, 2012
5:22 pm

Jhm

The exit tax is the same amount he would’ve ended up getting hit with by the IRS anyway

He’s better off moving abroad

Jay

May 16th, 2012
5:22 pm

“Beijing (CNN) – Nearly half of Chinese millionaires are thinking about leaving the country, while 14% have or are in the process of applying for emigration, according to a Hurun Research Institute and the Bank of China report.

Their joint “Private Banking White Paper 2011” talked to individuals with assets of more than 10 million yuan (US$1.57 million) in18 cities to find out how China’s super rich manage their wealth. The average asset holdings of the 980 surveyed are 60 million yuan (US$9.44 million), with the average age of 42.

Where do China’s millionaires want to move? North America is the top choice. The United States is the most popular immigration destination for Chinese millionaires, attracting 40% of the respondents who are interested in leaving China, followed closely by Canada (37%) followed by Singapore and Europe.”

DebbieDoRight - A Pro Gay Rights Loving, Anti LimpBalls Hating, Feminazi!

May 16th, 2012
5:23 pm

Jm : Frankly america is a bad place to do business relative to many other countries nowadays

If that were the case, every US business would close their doors and move to China, (which is a GREAT place to do business, according to some of you cons). Do you know why they don’t? Because in some of these other more “friendly” countries, the ruling party and/or person, can and WILL take your company from you if they want.

BTW – my Brazilian Brother in law is studying to become a US citizen, (don’t want to wait the required 7+ years to become a citizen through marriage). When I asked him why, He stated it’s because if he’s stuck somewhere in another country, (let’s say N. Korea like those ladies a few years back); he knows America will at least try to come and get him. Brazil wouldn’t even care.

barking frog

May 16th, 2012
5:23 pm

The business game is
played a bit different
in Singapore. I wish
him well.

Joe Hussein Mama

May 16th, 2012
5:24 pm

I’m out; all be well and drive safely.

ld

May 16th, 2012
5:25 pm

Neither the unemployed NOR the under-employed–those who are employed only part time and/or are grossly underpaid proportionate to their contribution to profit while management and owners reap extravant reward from their employee’s — labor simply cannot any longer afford to be the consumers — the customers — that fuel the needed recovery.

What is FIRST needed — arguably required — is some “break” in the GREED of those that have overcharged and underpaid to become the wealthy –the people that want to be the “sellers” (wholesale and retail) for the “buyers”.

One way

May 16th, 2012
5:26 pm

He’s right. Consumers drive the economy. But, studies show middle class people spend more when they have a job. Energy costs (gas prices) and interest rates probably have more to do with stimulating consumer demand than marginal tax rates. An argument for lower middle class rates shouldn’t be an argument for higher taxes on the wealthy. This tax thing comes up a lot of different ways, but again, the lower rate wealthy folks pay is on investment income by way of the capital gains tax.

Kamchak ~ Thug from the Steppes

May 16th, 2012
5:27 pm

Beijing (CNN) – Nearly half of Chinese millionaires are thinking about leaving the country…

How do you say, “going Galt” in Chinese?

Jm

May 16th, 2012
5:28 pm

“all he did was use America to make his fortune and turn tail when it was time to feed the cycle…”

Perfect liberal thinking bro

He used America. Lets ignore the jobs, the efficiencies and value provided. Another capitalist blood sucker.

I say thanks, and wish US tax law made it sensible for him to stay here, reinvest, and create more new jobs

But alas our tax code tells people: go elsewhere

anonymous_coward

May 16th, 2012
5:30 pm

Funny you should bring up the dude that’s moving his citizenship to Singapore. He’s just one person out of a a very large company here in the Bay Area. The people that FB employs pay far more in taxes and into the general economy than this one time deal with this fellow. Zuck is paying taxes on his gains and holds far more. It’s really not that big a deal, but I guess I just live here and don’t pay much attention to what other people have been saying about it. After all, I live in that socialist enclave known as San Francisco/Bay Area ;) where we couldn’t possibly have any jobs, right? But somehow things are going like gang busters here, tech companies galore, and all those people do pay taxes and enjoy spending their wages. Oh wait – this is a *bad* place to do business, isn’t it. I forgot. Nobody wants to do business in the US, least of all in the bay area… I forgot. All those regulations, you know… must be why so many people want to live here. Hmmmm….

JamVet

May 16th, 2012
5:31 pm

What a shame that the Socialist Party of the USA is going to nominate that northeastern liberal, Mitt Romney.

They had a glorious chance to nominate Mr 9-9-9 Pizza King who would have fixed all of this deficit and War on the Wealthy Class stuff…

Jm

May 16th, 2012
5:32 pm

The Chinese don’t know what they’re getting into. Many subsequently leave.

Fiscally conservative Canada is a better choice

We’re just Mexico on roids

Kamchak ~ Thug from the Steppes

May 16th, 2012
5:33 pm

…must be why so many people want to live here.

I would move to San Jose simply for the August weather.

And the Jazz Fest….

ld

May 16th, 2012
5:33 pm

Those people that risl “only” money — the love of which is, supposedly, the root of evil — should NOT pay a lower percentage of their income in taxes than the person that risks life, limb and/or sanity working for wages and/or salary.

This is especially true as to those people that make money on borrowed money using a legal shield of their personal assets from risk and responsibility — they have for far too long reaped lower tax rates, etc.

Also, if businesses, corporations and other entities–and, yes, unions, too–are “people”, too, with an equal right of free speech, then they should pay according to the same individual income tables as the wage earners and salaried employees, including those policeman and firemen that, every day, are willing to put their LIVES in harms way to defend the rest of us–including the wealthy that seek to avoid taxes by every means possible.

Doggone/GA

May 16th, 2012
5:34 pm

“Where do China’s millionaires want to move? North America is the top choice”

I wonder how that compares to the number of American millionaires who want to emigrate to China? ;-)

ld

May 16th, 2012
5:34 pm

ALL people that renounce American citizenship to avoid taxes should be deported and re-entry into this country forever forbidden.

Brosephus™

May 16th, 2012
5:36 pm

How do you say, “going Galt” in Chinese?

去 Galt

DebbieDoRight - A Pro Gay Rights Loving, Anti LimpBalls Hating, Feminazi!

May 16th, 2012
5:37 pm

Jm you are always welcomed to leave with that guy from Brazil — we’ll throw you a “going away crazy” party. I’ll bring the chips.

Jm

May 16th, 2012
5:37 pm

CA has net migration out. People are leaving CA in droves because of stupid CA govt

That’s why unemployment is high in CA, the $16B deficit is out of control

The only people that will be left are the destitute and rich folks who don’t care about taxes (there are some)

Meanwhile, the middle class working folks are vacating CA

Jm

May 16th, 2012
5:38 pm

Greece collapsing and banks fail there

America’s future writ small

Brosephus™

May 16th, 2012
5:38 pm

He used America. Lets ignore the jobs, the efficiencies and value provided. Another capitalist blood sucker.

Dude, he made his money with investment in Facebook, so he personally created how many jobs? What efficiencies did he personally create? If anything, he’s helped decrease the productivity of the American worker because people are so damned obsessed with Facebook.

Kamchak ~ Thug from the Steppes

May 16th, 2012
5:39 pm

OH NOES! NOT THE GREECE CARD!

Redneck Convert (R--and proud of it)

May 16th, 2012
5:40 pm

Well, dang! After all these tax cuts that got passed, now they tell me tax cuts don’t create jobs.

There’s only one thing to do now. All of us buyers need to get together and start a campaign to hand out $100 bills to every business we see. Yep, just walk into the nearest store and slap a hundred on every store worker you see. And just keep doing it every day till they start hiring more people.

I got to admit, I’m real bummed out to learn tax cuts don’t make job creators. It’s sort of like seeing the nun you always respected give birth to triplets and then laying buck-nekkid in bed with a pair of guys.

I’m kinda shattered. My whole life for the past 40 years or so seems like a whopping lie. I might could dig into a case of PBR tonight to help overcome the disappointment. It’s the end as we know it.

DebbieDoRight - A Pro Gay Rights Loving, Anti LimpBalls Hating, Feminazi!

May 16th, 2012
5:41 pm

California was doing just fine, with a big ole surplus under Governor Gray, but the cons in california pushed the idea to the “not so smart” that the surplus should be going back to them , so they recalled Gray, elected Schwarzenegger, and he gave them exactly what they wanted. Debt.

Brosephus™

May 16th, 2012
5:41 pm

http://www.pcmag.com/article2/0,2817,2404344,00.asp?kc=PCRSS03069TX1K0001121

Saverin, the Brazilian-born college classmate of Zuckerberg, was the first investor in the company when it was created in a Harvard dorm room in early 2004. But Saverin’s relationship with Zuckerberg and Facebook became contentious within just a few short months.

As depicted in the film The Social Network, soon after Zuckerberg moved the fledgling company to Palo Alto, Calif. in June 2004, Saverin was squeezed out of Facebook, reportedly at the urging of early angel investor Peter Thiel, former Facebook president Sean Parker, and others.

A lawsuit Saverin filed against the company resulted in an undisclosed settlement, which appears to have included the restitution of at least a portion of his one-time 34 percent stake in the company and his recognition as a Facebook co-founder in the company’s documentation.

jm

Wanna talk about how many jobs he created? He didn’t do anything other than invest money. That’s just like saying that the winner of the MegaMillions created jobs by putting money into the lottery pool.

:roll:

Paul

May 16th, 2012
5:42 pm

pogo

“Hanauer has been for many years a major contributor to the Democratic party. Whatever his claimed party affiliation, the fact that he repeatedly gives large sums of money to the democrats makes his argument about taxing the rich pretty much irrelavent.”

Werner von Braun worked for the Nazis so his ideas about rockets and space flight are pretty much irrelevant, eh?

The person is independent of the idea.

So strip away the name “Hanauer” and refute his thesis, okay?

Generation$crewed

May 16th, 2012
5:44 pm

So, help me here I’m confused!

Is Hanauer blaming the consumers for the slow job growth?
I mean after all everyone has lower tax rates now, not just the rich but everyone is keeping more of their earned money. So why are they being greedy and not spending it?

ld

May 16th, 2012
5:44 pm

Food for thought?

Read somewhere that wealthier women from around the workd — including from China — are coming to USA to give birth — think “anchor baby” issue of the future. These children, under current US law, are children that will be entitled to all the rights of US citizenship, including the right to vote and run for public office, including the office of the president. Their job applications (including for government employment) will indicate they are US citizens.

Think of it. Latino “anchor babies” raised here with “American Values” are feared and/or loathed now by many; others deem the term derrogatory or politically incorrect and, understandably, want laws to prevent discrimination.

These “anchor babies” of the future will RAISED with other values, including as communists. The cowardice of the US Congress in dealing with broad immigration reform is very likely to come back and bit us in the buttox.

[The stated benefit, supposedly, is a cheaper US education for their future college student.]

Brosephus™

May 16th, 2012
5:46 pm

G$

I’m guessing you’re not aware of the shrinking middle class, number of people unemployed, and the overall wage stagnation of the middle class???? That whole spending binge of the 2000’s was done on credit, not wages and/or earnings….

Jay

May 16th, 2012
5:46 pm

Eduardo Savarin is who he is. He came here, took advantage of what this country had to offer, reaped untold wealth and now seeks to flee rather than contribute in return.

He doesn’t bother me all that much. What bothers me are those Americans who celebrate his decision, who love the validation they think he provides of their ideology more than they love their country itself.

That’s what bothers me.

Generation$crewed

May 16th, 2012
5:47 pm

Paul
May 16th, 2012
5:42 pm

Aren’t taxes lower for all consumers than they have been?
So why aren’t the consumers consuming?

ragnar danneskjold

May 16th, 2012
5:47 pm

Silly idea, no economic basis. If you really want to create jobs, eliminate those things that discourage employers from hiring:
(1) ObamaCare per employee taxes,
(2) Dodd-Frank constraints on investment by those with capital,
(3) Sarbanes-Oxley micromanagement rules that increase costs of doing business,
(4) SEC requirements for companies with less than $1 million in assets or fewer than 5,000 shareholders.

It is a regulatory jobless recession, controlled entirely by the friendly bureaucrats.

Paul

May 16th, 2012
5:48 pm

Brosephus

“Funny how people are holding that dude up as some kind of hero when all he did was use America to make his fortune and turn tail when it was time to feed the cycle…”

Funny? It’s sad that cons hold him up as a role model or as an example of correct thinking.

Jm

“The Chinese don’t know what they’re getting into”

You’re response to Jay’s cite that Chinese millionaires wanting to come here is that they’re too stupid to know what’s in their own best interest? They can begin companies, make millions but are too dumb to correctly assess the impact of a move?!!?

.” Many subsequently leave.”

Cite?

Or are you makin’ stuff up again?

(Hint: if making stuff up is the only way to substantiate what you want to believe, maybe what you want to believe isn’t grounded in reality).

ByteMe - Political thug

May 16th, 2012
5:48 pm

For those still arguing over Zuck, here’s a basic fact:

He holds founder’s stock. That means he’s not taxed on the IPO until he sells his stock and then it’s long-term cap gains at 15%. I’m not an accountant, but have been through one of these before and that’s how the game gets played at the top of the food chain.

N-GA

May 16th, 2012
5:50 pm

Henry Ford had it right when he decided he needed to pay his employees at least enough for them to be able to buy the very automobiles they built. He knew if he didn’t, he would never sell many cars/trucks. He helped drag this country out of the era of the Robber Barons and the “company store”. The GOP is shoving back with all their greedy might!

ByteMe - Political thug

May 16th, 2012
5:50 pm

He doesn’t bother me all that much. What bothers me are those Americans who celebrate his decision, who love the validation they think he provides of their ideology more than they love their country itself.

For those “Americans”, it’s only being a traitor when it goes against their ideology. See Hannity. Better yet, don’t see him.

Generation$crewed

May 16th, 2012
5:51 pm

Brosephus™
May 16th, 2012
5:46 pm

So its the consumers fault who used credit to falsely keep the economy afloat with “fake” money?
Is it only from the 2000s or did this credit problem exist prior to then if so for how long?