A recent editorial in the Wall St. Journal has been making the rounds in entrepreneur circles lately. The post, entitled "Entrepreneurs Can Lead Us Out of the Crisis" was penned by Tom Hayes, a Silicon Valley executive and Michael Malone, a writer for ABC News.
The editorial rightly notes that it is entrepreneurs who take the risks that lead to real job creation and it outlines some steps the government should take to encourage entrepreneurship and investment in early stage companies. Many of the idea's appear interesting, particularly the creation of investment accounts similar to a 529 plan, the rescinding of Sarbanes Oxley and the development of a tiered tax structure to encourage early stage investment.
The one that I found particularly interesting and that would really drive job creation across all segments of the economy would be the elimination of payroll taxes for early stage companies. The authors don't elaborate on the specifics of this, but it would be great if the government got behind something like this. Perhaps a company would get to waive payroll taxes for the first three years of their existence or until they've hired a set number of employees. The additional capital it would generate for start ups could be substantial and could also help alleviate some of the credit crunch we are facing right now.
Sadly, it is highly doubtful that our government could be this innovative in their thinking. With that being said, all business owners should support the authors call for a Presidential Summit on Entrepreneurship. The last one was held in 1982! If President Obama can hold a summit on health care, he can host one on Entrepreneurship; after all, entrepreneurs will probably be the people who solve health care.
The editorial rightly notes that it is entrepreneurs who take the risks that lead to real job creation and it outlines some steps the government should take to encourage entrepreneurship and investment in early stage companies. Many of the idea's appear interesting, particularly the creation of investment accounts similar to a 529 plan, the rescinding of Sarbanes Oxley and the development of a tiered tax structure to encourage early stage investment.
The one that I found particularly interesting and that would really drive job creation across all segments of the economy would be the elimination of payroll taxes for early stage companies. The authors don't elaborate on the specifics of this, but it would be great if the government got behind something like this. Perhaps a company would get to waive payroll taxes for the first three years of their existence or until they've hired a set number of employees. The additional capital it would generate for start ups could be substantial and could also help alleviate some of the credit crunch we are facing right now.
Sadly, it is highly doubtful that our government could be this innovative in their thinking. With that being said, all business owners should support the authors call for a Presidential Summit on Entrepreneurship. The last one was held in 1982! If President Obama can hold a summit on health care, he can host one on Entrepreneurship; after all, entrepreneurs will probably be the people who solve health care.
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