Thursday, President Trump asked Republican lawmakers to end tax reductions on profits.
By tax reduction, private equity and venture fund managers can handle income from investing at low interest rates, not general income.
The removal of tax reduction will be a big blow to the VC industry.
Bobby Franklin, president and CEO of the National Venture Capital Association (NVCA), said in a statement: “National interests encourage wise and high -risk investments in innovative high -growth startups.
Trump has emerged to end his profits when he campaigned for the president in 2016. But when I was in charge of the office during my first term, tax reductions and jobs in 2017 did not include removal. Instead, the tax code has been revised, extending the equity period of assets that can receive capital gain rates from one to three years.
The venture capital company was completely satisfactory to the industry because it rarely sold assets in a year after investing for the first time.
“In 2017, the Trump Tax Law continued its venture investment with emerging technologies such as AI, encryption, life science and defense. Change will now interfere with progress and especially in middle schools, especially in middle school, ”Franklin said.
Despite the concerns of NVCA, the majority of capital invested in emerging technology companies came from New York and Silicon Valley, and the northern California is especially dominant.
