The Key Role of Taxation Policy for Startups
POLITICAL SCIENCES |

The Key Role of Taxation Policy for Startups

THE IMPACT ON ENTREPRENEURSHIP STUDIED IN A RESEARCH PROJECT LED BY BOCCONI'S DONDENA CENTRE

Well-designed taxation schemes are a way to stimulate entrepreneurship, according to 2017 report delivered by the Carlo F. Dondena Centre for Research on Social Dynamics and Public Policy (see below). It was presented at the EU Commission-IMF Fiscal Affairs Department conference on “Taxation, investment and innovation: a triptych for balanced growth” in Brussels. The authors highlighted three main policy options. First, governments may incentivize entrepreneurs to take risks by reducing the asymmetric tax treatment of gains and losses. In the case of startup companies that do not have enough income, the report says, “innovative solutions such as the possibility to match losses with taxes other than income tax, or even to transfer and negotiate tax credits, could be tested.”

Second, the costs of entrepreneurial activity may be reduced by allowing the deduction from the corporate tax base of the imputed cost of equity. Third, a reduction in capital gains taxation may help small firms that have limited access to venture capital funds. “A reduction in such costs by targeting specific features of the tax system should be part of a reform strategy. Tax compliance costs for small firms can be reduced also by a system-wide digitization of the tax system,” says Alessandra Casarico, Associate Professor of Public Finance and Coordinator of the Welfare State and Taxation Unit of the Dondena Research Centre.

Read more about this topic:
Nicolai Foss. Entrepreneurship Goes beyond Startups
Carlo Mammola and Luigi Mastromauro. Predicting Startup Success with Data
Good Business Plan not Enough for Success. Interview to Alisée de Tonnac
Creating an Identikit of Entrepreneurs from 1850 to Present
Grow Your Business but Minimize the Risks
A Small Fee for Business Training Improves Course Attendance
Family Ownership Helps Cope with Political Uncertainty
Experimental DecisionMaking Approach Attracts Funding
Entrepreneurs Who Act Like Scientists Get Better Results
Avocado Toast Leads to Hot Brooklyn Startup. Interview to Alessandro Biggi
Turning “Spotify for Textbooks” into $4.8 mln. Interview to Perlego
Looking at Gender Bias in Funding Yields a Surprise Result
Family Firm Governance Results Linked to Context
Social Networks Foster Entrepreneurship
Taking Texting to the Next Level with Kaleyra. Interview to Dario Calogero
Connecting the Dots on How WWI Unleashed new Business Performance
 

by Claudio Todesco

News

All News
  • MINTS, a New Research Unit on Monetary Innovation

    The research unit and an observatory will be launched on Wednesday 18 December, with the conference The Future of Money, which will analyze the implications of innovation on central banks and their monetary policies  

  • OASI Report: Italy's NHS in Identity Crisis amid an Expanding Healthcare System

    According to SDA Bocconi's CERGAS scholars, there is an urgent need to redefine the mission of the National Health Service, which has reached substantial financial stability (e149 million deficit out of e119 billion expenditures, equal to 0.1%), but is growing less than privately funded services. With a study of the career hurdles women face  

Seminars

  January 2020  
Mon Tue Wed Thu Fri Sat Sun
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31    

Seminars      

All Seminars
  • Causality: A Decision Theoretic Foundation

    Pablo Schenone (Visiting professor, Caltech)

    Seminar Room 3.e4.sr03 - Via Roentgen 1

  • Mechanism Design with Limited Commitment

    Laura Doval (Assistant Professor, Caltech) 

    Seminar Room 3.e4.sr03 - Via Roentgen 1