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Small Business, Innovation, and Tax Policy: A Review

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  • William Gale
  • Samuel Brown

Abstract

Small businesses occupy a significant role in policy debates. This paper reviews evidence relating to tax policy, small businesses, innovation, and entrepreneurship. We provide background information on the small business sector and alternative business definitions. We examine evidence suggesting that job growth and innovation tends to occur in young firms, which typically start off small, rather than in small firms per se. We review how a wide variety of tax policies influence entrepreneurial activity. The key issue for policy makers going forward appears to be targeting incentives on young firms as opposed to small firms.

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  • William Gale & Samuel Brown, 2013. "Small Business, Innovation, and Tax Policy: A Review," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(4), pages 871-892, December.
    • Handle: RePEc:ntj:journl:v:66:y:2013:i:4:p:871-892
    DOI: 10.17310/ntj.2013.4.05
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    Cited by:

    1. William Gale & Samuel Brown, 2013. "Small Business, Innovation, and Tax Policy: A Review," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(4), pages 871-892, December.
    2. Bergner, Sören Martin & Bräutigam, Rainer & Evers, Maria Theresia & Spengel, Christoph, 2017. "The use of SME tax incentives in the European Union," ZEW Discussion Papers 17-006, ZEW - Leibniz Centre for European Economic Research.
    3. Catherine Fazio & Jorge Guzman & Scott Stern, 2020. "The Impact of State-Level Research and Development Tax Credits on the Quantity and Quality of Entrepreneurship," Economic Development Quarterly, , vol. 34(2), pages 188-208, May.
    4. Wang Dongling & Kelvin C.K. Lam, 2018. "Whether the Innovation Policy Will Really Improve Enterprise’s Innovation Performance— Mediating Role of Ambidextrous Learning," International Business Research, Canadian Center of Science and Education, vol. 11(9), pages 96-107, September.
    5. Christian Imboden & John Voorheis & Caroline Weber, 2023. "Self-Employment Income Reporting on Surveys," Working Papers 23-19, Center for Economic Studies, U.S. Census Bureau.
    6. Can, Ege & Fossen, Frank M., 2023. "Income Taxation and Hours Worked in Different Types of Entrepreneurship," IZA Discussion Papers 16683, Institute of Labor Economics (IZA).

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    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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