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This is a slightly tricky one because I do think there is potential for the tax change to negatively impact funding available for startups. However, the impact
by royrod 16y ago
This is a slightly tricky one because I do think there is potential for the tax change to negatively impact funding available for startups.
However, the impact should be minimal and I agree with Fred Wilson that carried interest fees are not really that fundamentally different from other types of fees and thus standard income tax levels make sense.
- hga 16y agoA potential??? If you want less of something, or don't care if you get less of it, you tax it. Totally ignoring the fairness issue (it's certainly a debatable point), starting from this status quo how can you possibly believe this change will not cause harm? About the only way I see for the medium to long term is that VC firms restructure, which might end up with a neutral or even better situation (Fred Wilson is hoping for the latter, but I didn't find his case very convincing). But in the short term it's hard to see how it's going to be anything other than a mess not to mention a distraction from the real job.