hang on there; how come a higher tax rate would kill the startup market? A more complex business tax regime, sure, but you are only taxed on your profits and what you pay yourself. You don't pay much in taxes until your company actually starts making money.
Especially considering that capital gains is treated differently (and taxed less) than income, it seems to me like the most advantageous course to take in a time of high taxation is to start a business, and re-invest as much of your profit as possible. Then, at some point sell it and pay capital gains on your winnings. (or perhaps sit on it until tax rates go down a bit.)
Now, obviously a high tax rate will cause people to spend less, but that's going to hurt all businesses, not just startups. From where I stand, as a small company, it seems that I am much better positioned to compete on price than larger companies in my market.
Especially considering that capital gains is treated differently (and taxed less) than income, it seems to me like the most advantageous course to take in a time of high taxation is to start a business, and re-invest as much of your profit as possible. Then, at some point sell it and pay capital gains on your winnings. (or perhaps sit on it until tax rates go down a bit.)
Now, obviously a high tax rate will cause people to spend less, but that's going to hurt all businesses, not just startups. From where I stand, as a small company, it seems that I am much better positioned to compete on price than larger companies in my market.