<p>Report Examines How Tax Code Treats Entrepreneurships</p>

Report Examines How Tax Code Treats Entrepreneurships

Urban-Brookings Tax Policy Center

While the U.S. tax system favors entrepreneurial activity in the build-up phase, allowing income to be tax-deferred and taxing it at favorable rates applied to capital gains, taxes applied to the income of mature firms may decrease the market value of emerging firms, Eric Toder of the Urban-Brookings Tax Policy Center said in an October 4 report.

<p>While the U.S. tax system favors entrepreneurial activity in the build-up phase, allowing income to be tax-deferred and taxing it at favorable rates applied to capital gains, taxes applied to the income of mature firms may decrease the market value of emerging firms, Eric Toder of the Urban-Brookings Tax Policy Center said in an October 4 report.</p>