Interesting. This also implies a shift from financial capital (VCs, hedge funds, private equity) to production capital (reinvested profits) when corporate tax rates go up. In the Carlota Perez model, this is the shift from the "frenzy" phase (of huge valuations, founders entering and exiting startups, bubble mentality) to the "deployment" phase (where the technology diffuses through the economy and is adopted as part of the fabric of many companies). I never thought of tax policy as helping drive that, but it seems to correspond pretty well.

My other big question is how this interacts with monetary policy. Inflation tends to preference financial capital by a.) lowering the real cost of outside credit and b.) causing dislocations within the economy that create opportunities for new startups. That could offset higher corporate taxes to some extent, while if combined with low corporate taxes it could spark a mania.