> Most governments and states in the world actively encourage this by giving tax relief to small businesses, and then other types of incentives. At least in th

> Most governments and states in the world actively encourage this by giving tax relief to small businesses, and then other types of incentives. At least in the USA, I don't think there is any need to "incentivize" going into business via the tax code. Most people who can afford to own a business already do, and many people who really can't afford it still try! "I'd love to start a business and try to make a bunch of money, but those darn taxes are stopping me!" - said no US entrepreneur ever. They're not doing it for these small tax incentives, but they are certainly taking advantage of them whenever they can. So it seems like we are simply incentivizing activity that's already going to happen and allowing people who were already going to do it anyway to have that activity be not subject to taxes.