

Entrepreneurs Defend a Tax Benefit Despite a Dubious Congress - robg
http://www.nytimes.com/2007/09/21/business/21venture.html?ref=technology

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entwannabe
With all due respect to VC;s.

I strongly disagree that VC's will stop putting money into new ideas. Can you
imagine a Joe Shmoe VC putting a lesser amount of money into the Google Series
B round ( when the company was worth 75m) because the tax rate was high. That
is absurd. Many VC's have clauses in their contracts where they decide what
their rate of return should be. In the event of higher taxes the greedy ones
will simply increase the rate of return in their contracts.

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ideas101
I strongly agree with VCs who are defending the move - in fact I suggest to
give more tax benefits to new start-ups and liberal tax breaks to VCs for
investing large capitals on new ventures this will increase the capital
inflow, innovation, employment and enthusiasm for entrepreneurship.

