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Journal Article

How Much Do Taxes Affect Startup Investment Incentives

Donald Marron, Joseph Rosenberg
March 9, 2015

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Abstract

In a contribution to the Policy Dialogue on Entrepreneurship blog of Kauffman.org. 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 Area

Business Taxes Consumption taxes (business) Income taxes (business)
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Meet the Experts

  • Donald Marron
    Institute Fellow
  • Joseph Rosenberg
    Senior Research Associate
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
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