TSX:ATRL - Post Discussion
Post by
Gabriel on Apr 21, 2024 1:24pm
Other source than Fraser I - Factual study in 32 countries..
How about this one.
The Capital Gains Tax: A Curse but Also a Blessing for Venture Capital Investment†
Higher Capital Gain tax significantly reduced investment in 32 countries but increases success rate of start-ups.
https://onlinelibrary.wiley.com/doi/full/10.1111/jsbm.12373
Our study analyzes the effect of the capital gains tax on the individual investment decisions of venture capitalists. By doing so, we are able to study the decisions for a sample of 61,558 funding rounds in 32 countries from 2000 to 2012. Our results support the predictions of the theoretical model that higher capital gains tax rates are associated with fewer start-ups financed and a lower probability of receiving follow-up funding. However, the results concerning the effect on the probability of success of start-ups show that a higher tax burden is associated with a higher probability of eventual start-up success.
i can send you the full paper if you want. I have a subscription...
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