Entrepreneurs generally don’t give taxes much thought as they contemplate launching a new business. But the U.S. tax code presents a number of challenges for startups – challenges that can amount to the difference between survival and failure. Specifically, the current tax code penalizes businesses with substantial, early-years losses, discourages investors from backing risky new businesses, and impedes successful new companies from expanding.
Policymakers are currently discussing a second tax reform effort following the enactment of the Tax Cuts and Jobs Act of 2017. CAE urges that any additional tax reform should include a sharp focus on enhancing tax circumstances for American entrepreneurs and startups.