Obama To Eliminate Cap Gains Tax for VCs?
Did Barack Obama just propose to eliminate capital gains taxes on venture capitalists? The same Barack Obama who most VCs believe will increase their tax burdens? The answer seems to be yes, upon my first reading of a new economic stimulus plan released this morning by Obama, called the Small Business Emergency Rescue Plan. Here's a snippet: Barack Obama believes that we need to encourage investment in small businesses to help create jobs and turn our economy around. That’s why Obama will eliminate all capital gains taxes on investments made in small and start-up businesses. Unlike John McCain, who wants to give $200 billion in new tax cuts to America’s largest and most profitable businesses, Barack Obama wants to cut taxes for the small businesses that create jobs but struggling with restricted access to credit alongside skyrocketing health care and energy costs. That would seem to cover venture capitalists, or at least those who still engage in early-stage investing. I've put in a call to Obama's campaign to see if there's any fine print that would exclude institutional investment, but have not yet gotten a call back. At the very least, angel investors would seem to be covered. The only caveat here, and it's a big one, is that Obama favors a change
