New companies with high growth potential – and with high potential to create jobs – often struggle to obtain sufficient capital to cross the so-called "Valley of Death" in the process from concept to prototype. With continued economic uncertainty, government funding is no longer a guaranteed solution, and private investors have become increasingly risk averse. According to a new report released today by the Ewing Marion Kauffman Foundation, both startup activity and investment would be increased by a permanent tax exemption on capital gains on investments in startups held for at least five years.
This idea is embodied in the Startup Act proposed by the Kauffman Foundation in July 2011, in Startup legislation proposed by the Administration, the Startup Act legislation recently introduced in the Senate by Senators Moran and Warner and in a Small Business Tax Extenders Bill introduced this week by Senators Snowe and Landrieu.
To read the full, original article click on this link: Capital Gains Tax Exemption for Investments in Startups Would Help New Companies Cross the ‘Valley of Death’ Says Kauffman Report
