The interest carried can repeal investments in start -ups – says NVCA ncvrs.com

On Thursday, President Trump asked Republican legislators to complete the tax breaks for the interest he had kept.

The tax credit allows private capital and risk fund managers to treat their investment revenue with lower capital gains rather than normal income.

Removing the tax break would be a big hit for the venture capital industry.

“The interest carried stimulates smart, high -risk investments to innovative, high -growth start -ups,” Bobby Franklin, President and CEO of the National Enterprise Capital Association (NVCA) In a statement he saidOr

Trump was swimming, ending the carved interest when he campaigned for president in 2016. When he took office for his first cycle, it was not eliminated in the Act on the Tax cut and the workplace. Instead, The tax number has been changedextending the maintenance period of assets to make the Capital Blessed Rate be entitled to three years from one year to three years.

As venture capital companies rarely sell assets one year after the first investment, this change was perfectly satisfactory to the industry.

“The Trump tax legislation of 2017 is constantly ongoing risk -business investments in emerging technologies such as AI, Crypto, life sciences and national defense. The change is now disturbing this progress and disproportionately damaging small investors, especially in Central America, ”said Franklin.

Despite the concerns of NVCA, the vast majority of capital invested in emerging technological companies come from the New York and Silicon Valley. particularly dominantOr