Do higher taxes result in Capitalists having less incentive ?

[tradeunionsupporter]

Marxists and socialists who advocate socialism argue that welfare states and (modern) social democratic (http://www.revleft.com/wiki/Social_democratic) policies limit the incentive system of the market by providing things such as minimum wages, unemployment insurance, taxing profits and reducing the reserve army of labor, resulting in capitalists have little incentive to invest; in essence, social welfare policies cripple the capitalist system and its incentive system, the only solution being a socialist economic system.[22] (http://www.revleft.com/vb/#cite_note-21)

http://en.wikipedia.org/wiki/Socialist_state

Do higher taxes minimum wages and unemployment insurance result in Capitalists having less incentive to invest ? Im not saying this means we need Right Wing Capitalism it means we need Marxism/Socialism/Communism.

[tradeunionsupporter]

http://en.wikipedia.org/wiki/Laffer_curve

[RGacky3]

No, because if you have a vibrant society with a well off working class, thats where you want to sell your product, because they have money to spend, there are no taxes in Somalia, yet no one is investing there, because Somalies arn't gonna buy anything, Norway is gonna get much more investment because peopel rae buying stuff.

Its basically empirically not true. Obviously you need a smart tax structure, and you can't JUST raise taxes.