A compromise in Congress is forming among Democrats to tinker with the tax code, generate revenue in other ways, and apply that revenue to investments related to climate change and deficit reduction. The Cut Inflation Act 2022, if passed, would institute a minimum tax rate for large corporations and end the carried interest loophole.
TechCrunch separately explored the climate-related provisions in the bill, giving us space to discuss the proposed changes to carried interest, a change to our nation’s tax laws that could impact equity investors- venture and other seed funders. The obvious question is whether the change will materially impact how capital is invested in startups; if the tax code change puts investors at a disadvantage, it could limit investments in startups that were previously tax-efficient.
So will it be? Early public comments from venture capitalists indicate that the change is not this a big problem. Let’s talk about what’s changing and what venture capitalists are saying – out loud, at least.
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