Readers of this page know that we have long argued that the best and most valuable jobs are created by entrepreneurs and the private investors who fund them. And we've certainly celebrated the occasions when the public sector has recognized and supported entrepreneurial efforts, even while noting our disappointment in how little of that is evident.
Hayes and Malone rehearse the same catechism of entrepreneurship, innovation, private investment, and economic vitality, and go one to make some specific recommendations for policy makers to give serious attention. Some highlights:
- First, kill Sarbanes-Oxley or make it voluntary. Right now.
- Allow entrepreneurs to more easily tap tax-free retirement accounts -- or better yet, let them create tax-free accounts specifically to fund themselves.
- Eliminate payroll taxes, which unnecessarily burden young companies.
- Make the tax system more forgiving for Angel investors -- or allow the creation of tax-free investment vehicles similar to what we now see with nonprofit foundations or 529 college savings funds.
- Lower capital gains taxes on investments in early stage companies and higher taxes on later stage deals.
- Help big business think small.
- Convene a presidential summit on entrepreneurship and small business. The last president to do so was Ronald Reagan in 1982.
Hayes and Malone elaborate on these points, and we highly recommend their article as "required reading".
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