Journal Article How Much Do Taxes Affect Startup Investment Incentives
Donald Marron, Joseph Rosenberg
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In a contribution to the Policy Dialogue on Entrepreneurship blog of Joseph Rosenberg and Donald Marron examine how tax policy affects investment incentives for startup companies. Startups often make losses, and thus cannot make immediate use of the R&D tax credit, accelerated depreciation, and other tax benefits. The value of those benefits declines the longer startups have to wait to use them. This puts startups and fast-growing young firms at a disadvantage relative to established companies.

© This article was reprinted with permission of the Ewing Marion Kauffman Foundation's Policy Dialogue on Entrepreneurship blog.

Research Areas Taxes and budgets
Tags Taxes and business
Policy Centers Urban-Brookings Tax Policy Center