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The problem I have with government using tax incentives as a way to spur entrepreneurial growth is that by their nature these incentives reward current activity
by hinathan 16y ago
The problem I have with government using tax incentives as a way to spur entrepreneurial growth is that by their nature these incentives reward current activity with future benefits. But the payoff horizon — next year's tax filing – isn't actually useful for a new company. That's why I'm so bullish on using simplified health insurance as an incentive for new business. It provides value and reduces friction on day 1 and continues to do so through the earliest, highest risk phases of a company's lifecycle. Tax incentives reward success but don't help business attain that success.
- Benjo 16y agoSounds good to me. Unfortunately, politicians have more to gain by giving tax breaks to successful company compared to helping new small businesses, which is probably why there's not a lot of political will for ideas like this.