Tax Free
As a startup entrepreneur, budgets are very tight. Month to month funding often comes from friends and family. Sometimes, we get lucky and receive growth capital: equity financing, venture capital, angel funding, etc. There may be an intensive money multiplier in the future if we build a cash cow, go IPO or get acquired, but chances are (less than one percent), we will never see one of those routes.
But, we entrepreneurs want to see our ideas into fruition. We want to create jobs that will support the economy and build technology that will improve the future through simplification, innovation, or by simply entertaining. Of course, intentions aren’t important, but intentions should be considered.
Why? Very Simple. By creating simpler lives for startups, startups can focus better on creating legitimate revenue and innovating product lines at which point can bring in a lot more tax revenue. The government can do a few things here: tax-breaks and subsidized health care. At one point, I would have even looked into recommending government based loans and/or investments, but we’ll save that portion of anti-laissez-faire policies for large scale bail outs and specific sectors (i.e. defense and energy).
As a college student, I am currently covered in terms of health insurance through my parent’s policy. But, the moment I graduate, I need to either find a job that provides me health insurance or quarantine myself for the rest of my life. Wow, that sucks. So, not only do I risk losing my time for something that may not succeed, but I probably will not receive the healthcare I deserve. [PS: I am actually very optimistic about the success of my startup] By providing subsidized or free health care to start ups, the government is supporting innovation in a different way: think of it as a non-cash investment.
Just my thoughts and my first blog post.
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