Director of the Center for Entrepreneurship and Professor of Management Jeffrey Cornwall recently was published in a Wall Street Journal debate on the issue of tax cuts for “angel” investors of small businesses.
Arguing that these cuts don’t provide what they promise, Cornwall stated that a system like this would fail to incentivize more investors to give and wouldn’t provide any more jobs for the public, like the pro-argument states.
Instead suggesting a system rooted in cutting tax rates overall, Cornwall cited a SBA Office of Advocacy study which found that reductions in the personal income-tax rate increased the probability of an entrepreneur getting involved in business start-ups. The study also found that a reduction of 1 percent could increase the number of start-up business as much as 2 percent.
“That’s effective public policy – unlike tax cuts for angel investors,” Cornwall said.
To read the article “Should Angel Investors Get Tax Credits to Invest in Small Businesses?” click here.