home Uncategorized Venture investors shrug at proposed changes to US carried interest taxation Alex Wilhelm

Venture investors shrug at proposed changes to US carried interest taxation Alex Wilhelm

A compromise in Congress is forming among Democrats to tinker with the tax code, generate revenue by other means and apply those revenues to climate-change-related investments and deficit reduction. The Inflation Reduction Act of 2022, if it passes, would institute a minimum tax rate for large companies and close the carried interest loophole.

TechCrunch explored the climate-related provisions in the bill separately, giving us space to chat about proposed changes to carried interest, a tweak to our nation’s tax law that could impact venture capitalists and other startup backers. The obvious question is whether the change will have a material impact on how capital is invested into startups; if the tax code change disfavors investors, it could limit investments into startups that were previously tax-advantaged.

So will it? Early public commentary from venture investors indicates that the change isn’t that big of a deal. Let’s talk about what’s changing and what venture investors are saying — out loud, at least.

Will a change to the U.S. carried interest loophole have a material impact on how capital is invested into startups? Policy, Startups, TC, Venture Capital, Adam Nash, capital gains tax, carried interest, EC News Analysis, EC venture capital, economy, finance, hedge funds, Private Equity, redpoint, senate, Seth Bannon, Tax law, venture capitalTechCrunch

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