Hi GV, RE: "Amy, RE: The risk is so much higher for early stage investors, that I'm surprised the capital gains tax rate is the same for a privately held firm as a public company."
"Note that an early stage company is not necessarily the same thing as a privately held firm."
"A lot of very old, very large firms are privately held. "
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Hi GV, the above is an old post, but wanted to get back to this topic. Bush's economic proposal is suppose to grow GDP by $50B. It sounded small. How is GDP calculated - revenues? I had the thought, why not initiate a tax plan that encourages the creation of 1667 new startups (statistically 30% survive, say $100M min revenue each. 500*100M=50B).
I bumped into a seed-stage company that (I think) is an absolute gem - at least it fits my investment style. It seems to meet my criteria, but here I sit with my investments in the dog house, so what would finally get me to invest in it? Either INTC (or some other investment of mine) goes up, or, some kind of capital gains tax incentive for only new capital injected into startups, that could create an extra push to go ahead and risk it.
Your post implied there was no way to discern between the old, private companies and startups, and thus no way to provide tax incentive to Angels & VCs. But I disagree.
When a startup raises capital, they have to file a form with the government (State Commis.), as I recall. So, that particular government form could be the discerning factor in determining if it's a company that's putting new investment capital to work. (It might also encourage some of the older, private firms to get a move on it.)
I have to say, I don't particularly like Bush's economic plans. He claims it will generate growth as well as increase the number of small businesses, but I don't see any concrete evidence of that in the plan - only rhetoric.
Regards,
Amy J |
