Tax policies can have a significant impact on startups, which often rely on pro-growth and innovation provisions to attract talent and provide new avenues for revenue growth. Programs like Opportunity Zones, which provide tax incentives for companies which relocate into economically depressed areas, can help startups grow. However, forcing startups to comply with an opaque patchwork of 50 state online sales tax laws, a reality facing startups after the Supreme Court’s decision in South Dakota v. Wayfair, can hurt them.
Startups are increasingly able to expand quickly into global markets thanks to the Internet and reduced barriers to trade. Trade agreements that protect digital goods, promote a balanced copyright and patent regime, and include protections for platforms will increase the ability for startups to compete globally. We support pro-innovation trade agreements that can help U.S. startups expand into overseas markets, leading to more growth and opportunity.
“The Token Taxonomy Act will help provide the regulatory clarity that the blockchain industry has needed for quite some time. This forward-thinking proposal succeeds in providing clear rules supporting an emerging technology without constraining future growth.”
Evan Engstrom, Engine's Executive Director, penned a letter to House Speaker Nancy Pelosi (D-Calif.) and House Minority Leader Kevin McCarthy (R-Calif.) expressing support for the HALOS Act.
A primer about online sales taxes and why they matter to startups.
A primer on current trade issues and why they matter to startups.
If the U.S. is going to “modernize” its trade agreements, we need to make sure the deals take into account the startup ecosystem that makes up so much of our 21st century economy.
Engine applauds the reintroduction of the Empowering Employees through Stock Ownership (EESO) Act, bipartisan legislation that will make it easier for startup employees to exercise their stock options.
Today, the U.S. House of Representatives passed the Empowering Employees through Stock Ownership Act (H.R.5719), which will encourage startup growth by making it easier for employees at private companies to exercise their stock options. The following statement can be attributed to Engine Executive Director Evan Engstrom:
Equity compensation, often in the form of stock options, is a critical tool used by startups to attract, retain, and incentivize quality employees. But stock options have a downside: current tax law requires that employees pay an immediate tax when they exercise their options, usually long before they can sell those stocks to realize their full economic value. Fortunately, a bill being considered today by the House Ways and Means Committee could remedy this problem.
Among the many challenges entrepreneurs face in launching and scaling a startup, recruiting talented employees is one of the most difficult. There’s already a shortage of tech workers in this country (there are currently more than 600,000 open computing jobs nationwide, and last year, only 43,000 students graduated with computer science degrees), and it’s even more dire for startups that must compete with some of the most successful companies in the world to recruit these employees.