• About
  • Article PDF
  • White Papers
  • Listening Tours​
  • Contact
  • Support Us
  • Advertising & Sponsorships
Monday, August 8, 2022
No Result
View All Result
  • Login
Times Of Entrepreneurship
Growth and Equity for a Changing World
Times Of Entrepreneurship
No Result
View All Result

Tax Increase for Founders

by Elizabeth Macbride
December 10, 2021
in Women Entrepreneurs
Reading Time: 2 mins read
0
Share on FacebookShare on Twitter

woman leaning against a brick wall in a white jacketA note from our editor, Elizabeth MacBride

When the pandemic hit two years ago, I was staying at my friend Dina’s apartment in Boston. I switched my plane ticket to go home early and laid on the couch that night, sleepless. I’d just launched Times of E, with about four to five months worth of funding. If the world economy shuddered deeply, how would I feed my kids? I decided to write every story myself for a few months to conserve my capital. I did that, and the company survived.

I believe fundamentally that people who start companies should be able to earn a reward for the risk they take. I also believe the government has a right to tax people for the services and support it provides. Thank God for vaccines.

Those fundamental ideas aren’t necessarily at odds, but in our divided society, they are coming to be. Right now, Congress is considering a measure that would reduce the current exclusion on capital gains tax available to all employees, founders and investors. The new measure would exclude those earning more than $400,000 per year.

I think it’s interesting that for purposes of this part of the tax code, investors, and entrepreneurs are treated the same way. I see this often. In a two-sided conversation — government v. capital — the nuances get lost.

In our current divided political conversation, entrepreneurs and investors are being lumped in together, as “capitalists” or “private owners.” Indeed, Silicon Valley and tech entrepreneurship arguably grew up because a new form of finance, venture capital, shared some of the risk of company-building with founders – and the government provided the financing for the whole industry.

Much has changed since the middle of the 20th century. The financial services sector has exploded in size – some estimates have it as high as a quarter of the world economy. We have rich incentives already built into the tax code for investors (consider the capital gains tax in general).

Meanwhile, more than 80% of entrepreneurs receive no outside funding at all, and the banking sector has consolidated so much that it’s increasingly expensive and difficult for entrepreneurs to access basic financial services even after they have thriving companies.

As we’re thinking about how to fix the financing system for entrepreneurs, it’s worthwhile to separate the roles financiers, investors and entrepreneurs play in the system. We need more investors, but we need more entrepreneurs most of all.

 

______________________-

We’re in an anti-capitalist moment – that’s one of the themes we’re exploring at our first event, Challenges Met, Opportunities Ahead, for university entrepreneurship professors, professionals and students. More info here: https://timesofe.com/events/.

For more inspiring stories, insights and actionable funding opportunities, subscribe to Times of E’s weekly newsletter, www.timesofe.com/introduction.
Elizabeth Macbride

Elizabeth Macbride

A business journalist for 20 years, am the founder of Times of Entrepreneurship and the co-author of The New Builders.

Related Posts

Video: Armory Square Ventures’ Sawhney On The Rise of Upstate NY

Video: Armory Square Ventures’ Sawhney On The Rise of Upstate NY

by Elizabeth Macbride
June 19, 2022
0

This interview is one of a series of Women Entrepreneurs sponsored by YPO. You can see an interview of BankMobile...

Commentary: Women Now Face Pressure To Look Beautiful Everywhere They Go. Here’s How To Set Them Free.

Commentary: Women Now Face Pressure To Look Beautiful Everywhere They Go. Here’s How To Set Them Free.

by Shelley Hon
April 6, 2022
0

Shelley Hon (Photo Credit: Courtesy of Shelley Hon). Women have faced pressure to look beautiful since the beginning of time....

Black woman against a backdrop of West African spices

A West African Spice Company Comes into its Own as Flavors of Long-Overlooked Region Hit U.S. Tastebuds

by Nina Roberts
March 22, 2022
0

POKS Spices Founder Abena Foli. Photo illustration by Nina Roberts It’s becoming more common to see grains, chips, beverages, sauces...

A STEM Woman Needs a Stylish Steel Toe

A STEM Woman Needs a Stylish Steel Toe

by Nina Roberts
March 7, 2022
0

Anastasia Kraft photo illustration by Nina Roberts Female engineers working in manufacturing or construction go back and forth between office...

woman leaning against a brick wall in a white jacket

Editor’s Note: What the Kremlin wants

by Elizabeth Macbride
March 7, 2022
0

I’ve been watching the headlines about Ukraine. I’m horrified at the violence and death, I’m in awe of the courage,...

blonde woman in black

Advice for Women Raising Money for their Social Ventures

by Skyler Rossi
February 21, 2022
0

Melissa Bronfman Times of E reporter Skyler Rossi interviewed Marissa Bronfman on Jan. 19 about a new impact fund she’s...

Subscribe to Times of E’s Free Weekly Newsletter

Learn about the emerging ecosystem of diverse founders

Popular

  • man in front of a tufted rug

    TikTok Craze Gets Real at a Brooklyn Rug Tufting Studio

    0 shares
    Share 0 Tweet 0
  • Venture Capital Returns Are More Skewed Than People Realize

    0 shares
    Share 0 Tweet 0
  • Commentary: Authenticity Is Women’s Most Powerful Weapon in Raising Funds. Here’s How To Tap Into It.

    1 shares
    Share 0 Tweet 0
  • Top 20 U.S. University Entrepreneurship Competitions, 2021

    0 shares
    Share 0 Tweet 0
  • A City Of 66,000 Is At The Center Of An Audacious, $200M Attempt To Build A Tech Hub From Scratch

    0 shares
    Share 0 Tweet 0

Recent

woman leaning against a brick wall in a white jacket

Editor’s Note: Times of E is on a reduced publication schedule

June 23, 2022
Video: Armory Square Ventures’ Sawhney On The Rise of Upstate NY

Newsletter: Varsity Blues, redemption stories and women-led finance

June 23, 2022
Video: Armory Square Ventures’ Sawhney On The Rise of Upstate NY

Video: Armory Square Ventures’ Sawhney On The Rise of Upstate NY

June 19, 2022

Recommended

  • Health
  • Climate
  • Deep Tech
  • Finance
  • Education
  • Women Entrepreneurs
  • Mentorship
Weekly Newsletter: Top women investors, up next: inflation!, and boots for STEM women

Weekly Newsletter: Top women investors, up next: inflation!, and boots for STEM women

5 months ago
Wartime Entrepreneurs: 50 Syrian Women Find A Way To Export Aleppo’s Famous Soap To The U.S.

Wartime Entrepreneurs: 50 Syrian Women Find A Way To Export Aleppo’s Famous Soap To The U.S.

9 months ago
  • About
  • Partner
  • Bespoke Research
  • Listening Tours​
  • Contact
  • Support Us
  • Privacy Policy

(703-966-7357)

© 2020 Mondial Publishing Inc. All Rights Reserved.

 
Facebook Twitter Linkedin
No Result
View All Result
  • Research
  • Finance
  • Women Entrepreneurs
  • New Builders
  • Ecosystem
  • Events
  • Newsletter
  • Editor’s Note

© 2022 Mondial Publishing Inc. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Free Download

Times of E Speaks with Jim McKelvey

Get exclusive insights on the future of entrepreneurship. 

Download Now

Support Times of E

Times of E covers the emerging ecosystem of diverse founders.

With your support of our journalism, you will receive our weekly newsletter and one of these resources for free: 

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?