4 ms·
I hate the way the tax code, and subsequent decades of legal hacks, produces weird structures like the standard VC fund. There have to be ways of collecting th
by rdl 9y ago
I hate the way the tax code, and subsequent decades of legal hacks, produces weird structures like the standard VC fund. There have to be ways of collecting the same total taxes, or more, without distorting markets.
- Shivetya 9y agonot to be overly cynical but a complicated, convoluted, tax system, benefits government by assuring there will always be a violation they can act on to get to those they want.
- CalChris 9y agoI think the purpose of VC is to distort markets. What the tax code is trying to do here is to incentivize VCs and entrepreneurs to take risks. At the same time, you need anti-abuse to keep people from unfairly taking advantage of the incentives. This ends up being complicated. Maybe something like a 10% corporate AMT would help. Your WSGR startup lawyer will strongly recommend against trying A Double Irish Dutch Sandwich. Apple can do this because they will hire an army of lawyers to keep the Feds busy. You can't but at the same time you have to compete with Apple and Google and .... A corporate AMT would help level that playing field. Won't happen.