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> That's one way to kill venture capital! Title could just as easily read "Obama will seek to raise taxes on Startups to finance ...". Because photo sharing ap
by nether 12y ago
> That's one way to kill venture capital! Title could just as easily read "Obama will seek to raise taxes on Startups to finance ...".
Because photo sharing apps are so much more important than middle class Americans paying for their day to day lives. I think we can agree that the vast majority of VC-funded tech startups are frivolous. The faster we can pop and deflate this bubble, the better.
- zaroth 12y agoI don't think the vast majority of VC-funded tech startups are frivolous. All successful founders become funders, because it's the only thing you can do with the money that doesn't require giving half away. Everything that isn't excluded must be rolled over to keep it tax free. Also, it's good that at least founders are protected. So if you are starting your own company right now, up to $10e6 will be federal tax free and possibly (but not in CA!) state tax reduced as well. After 5 years. That's a really smart incentive if you ask me. This is a lesser-known plan and it makes a really big difference in many cases. The taxes suppress all VC investment, it's literally out with the good and the bad indiscriminately. The tax code should not quantify rate tables based on the type of software or product you create. Investment produces growth and scientific advancement, taxes on investment decrease that growth. Don't get caught up with sensational exits which in reality make up only a small percentage of the investment and the body of work which is being done. A doubling of investment tax in 6 years literally could mean the difference between Musk getting to Mars or not.