In Defense of Entrepreneurs
Like clockwork, U.S. Sen. Elizabeth Warren (D-Massachusetts) is again finding America’s billionaires guilty by reason of existence, arguing the Elon Musks and Jeff Bezos of the world must donate more to the government via higher taxes.
Her premise is that the wealthy don’t pay their “fair share,” leaving the non-wealthy to suffer in a zero-sum game.
The problem is that Warren, and the many others in Congress like her, aren’t simply attacking the wealthy; they are attacking the foundation of America’s greatness — entrepreneurs.
Remember, “entrepreneurs” founded this great nation almost 250 years ago when they pledged their lives, the fortunes, and their sacred honor. Many of them were wealthy because they produced goods or services their fellow colonists voluntarily purchased.
Consider, for a moment, some of the wealthiest people in America: Elon Musk, Larry Page, Sergey Brin, Jeff Bezos, Larry Ellison, Michael Dell, and Mark Zuckerberg. Beyond eye-popping net worths, they, too, are entrepreneurs who have provided goods and services consumers voluntarily use every day.
And like entrepreneurs throughout American history, they have delivered transformative innovations employed not only across America but throughout the world.
Think about it: Did you Google something today? Have you ordered from Amazon recently? Did you log onto Instagram? The answer to at least one of these questions is probably, “Yes.”
And what of the millions of people employed by Google, Amazon, Tesla, SpaceX, Meta, Oracle, and other companies led by America’s most wealthy? Do their families benefit from the career opportunities created by these entrepreneurs? Of course they do.
These benefits can even turn into windfalls. For example, The Wall Street Journal recently reported that once SpaceX goes public, thousands of current and former employees — from engineers to baristas — will reap the sizeable reward.
Benefitting the greater good is not the purview only of ultra wealthy entrepreneurs. Just look at entrepreneurs in your community. The owner of your favorite restaurant. Or your barber. Or plumber.
You’ve undoubtedly relied on these folks for either critical or quality-of-life services. And their entrepreneurship has also created jobs and sustained families. In fact, these types of local businesses are often considered the engines of America’s Main Street economy — making our communities thrive, giving our neighborhoods unique character, and improving all of our lives.
And this doesn’t even touch on the philanthropic contributions entrepreneurs make. Who often sponsors local community events that raise funds for non-profit causes? The businesses founded and run by entrepreneurs. This isn’t coincidental.
A report by Fidelity Charitable on entrepreneurs as philanthropists found, “On average, the median annual gift for entrepreneurs is 50% higher than non-entrepreneurs.” Further, “Two-thirds of entrepreneurs volunteer two or more hours a month, compared with just more than half of non-entrepreneurs.”
You may wonder what this has to do with Ms. Warren’s white whale of wealth taxes.
In a word, everything.
For the difference between these local entrepreneurs and the targets of Warren’s ire is not one of type but simply degree.
The spirit of risk taking, innovation, ingenuity, and philanthropy characterizes entrepreneurs both famous and not.
And it shouldn’t need repeating — but it does — that the wealthy already pay a lion’s share of taxes, with the top 10% of earners paying more than 70% of all federal personal income taxes.
As we celebrate America’s 250th birthday, it only makes sense to recognize that entrepreneurs founded and built our great country into what we are today. And entrepreneurs will help us keep it.
Rather than demonizing entrepreneurs by arguing that shouldering 70% of taxes isn’t enough, we should acknowledge them and thank them for making America the leading innovator of the world—and for doing far more than their “fair share” to improve the lives and livelihoods of individuals of families across America.
