A Technology Tax Hike?
Check out my friend John Rutledge's new report for the U.S. Chamber on efforts to raise tax rates on "carried interest" -- i.e., venture capital and private equity. Rutledge shows that
Venture capital has had an extraordinary record in creating new businesses, new technologies, new business models, and new jobs. Venture-backed companies accounted for $2.3 trillion of revenue, 17.6% of GDP, and 10.4 million private sector jobs in 2006. Venture-backed companies grow faster, are more profitable, and hire more people.
and concludes that
Raising tax rates on the long-term capital gains of limited partnerships will drive capital offshore, reduce the productivity of American workers and the ability of US companies to compete in global markets. It will cost American jobs and reduce American incomes.
