“It’s not a great day to be an entrepreneur in America, but it’s a great opportunity,” says Steve Jurvetson, co-founder of the tech firm Jurvetic.
“And if you’re not a billionaire, then it’s not the same.
The biggest winners are not the ones who can afford to pay more taxes, but the ones that can afford it.
I think this is the golden age of entrepreneurship.”
The new taxes will take effect in January, and some entrepreneurs may feel the pinch more than others.
“I’m not sure I’d be a great investor if I didn’t have the tax relief,” says Josh Buell, a software engineer from Texas who’s building a $1 billion business that aims to compete with Airbnb, Amazon and other big-name travel websites.
But if you can’t afford to invest, that’s a big hole to be filled.””
I have to say, I’m probably going to be in a much better position to invest in the startup economy than I would be with a large corporation.
But if you can’t afford to invest, that’s a big hole to be filled.”
There are other winners, too.
The tax breaks allow startups to deduct up to $1 million in costs from their tax bills, and they can deduct up $2 million in business expenses.
Many of these deductions are geared to helping entrepreneurs pay their employees more.
“These are all really important things that will help our businesses grow,” says Tim O’Brien, cofounder of startup company TechCrunch.
“It could help companies with low-wage workers, and it could help small businesses that are struggling with cost growth.”
Jurvetsan says he has already spent $100,000 on a business incubator, and is considering adding more incubators to his company’s portfolio.
“This tax relief is not just for the entrepreneurs that are going to come out of this.
It’s also for everyone that has been able to survive the last few years,” he says.
“We can be a lot more efficient and cost-effective if we’re able to start thinking about our business as a whole, rather than just focusing on a few specific segments of it.”