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.