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Democracy & Technology Blog A Technology Tax Hike?

Check out my friend John Rutledge’s new report for the U.S. Chamber on efforts to raise tax rates on “carried interest” — i.e., venture capital and private equity. Rutledge shows that

Venture capital has had an extraordinary record in creating new businesses, new
technologies, new business models, and new jobs. Venture-backed companies accounted
for $2.3 trillion of revenue, 17.6% of GDP, and 10.4 million private sector jobs in 2006.
Venture-backed companies grow faster, are more profitable, and hire more people.

and concludes that

Raising tax rates on the long-term capital gains of limited partnerships will drive capital
offshore, reduce the productivity of American workers and the ability of US companies to
compete in global markets. It will cost American jobs and reduce American incomes.

See the executive summary here and the full report here.

Bret Swanson

Bret Swanson is a Senior Fellow at Seattle's Discovery Institute, where he researches technology and economics and contributes to the Disco-Tech blog. He is currently writing a book on the abundance of the world economy, focusing on the Chinese boom and developing a new concept linking economics and information theory. Swanson writes frequently for the editorial page of The Wall Street Journal on topics ranging from broadband communications to monetary policy.