It seems that the federal government is bound and determined to stick their hands into our entrepreneurial economic expansion. The National Dialogue on Entrepreneurship reports on two competing bills beginning to wind their way through Congress.
Congressmen Don Manzullo (R-IL) and Earl Pomeroy (D-ND) have recently introduced H.R. 5198, the Access to Capital for Entrepreneurs (ACE) Act of 2006. This legislation would create a 25% tax credit for individual angel investors or partnerships that invest in qualified small businesses. The credit would be available for investments up to $250,000. Another take on the angel investing issue comes from Congresswoman Nydia Velazquez (D-NY). Along with numerous colleagues, the minority leader of the House Small Business Committee has introduced H.R. 4565, the Angels Nurture Growing Entrepreneurs into Long-Term Success (ANGELS) Act of 2006. H.R. 4565 would create a new Office of Angel Investment at the Small Business Administration. In addition to promoting angel investing as an innovative practice, the Office would make investments (of up to $2 million) to qualified angel groups.
I have a better idea. Stay away from our private equity markets, and instead focus on unwinding the mass of existing government regulations and over 60,000 pages of tax code that only inhibit free enterprise. If government wants to help entrepreneurship all the research shows that they should get less involved, not more involved.
