I am on the road this week in Alabama and Tennessee, but I felt the need to comment on one issue of the day. These thoughts will be a bit rushed:
Well, it looks like the awesome team of Trump and Clinton may manage to take yet another shot at reducing entrepreneurship. It's all a result of the report that the Donald had a nearly billion dollar tax loss decades ago, and that - gasp - this tax loss might have shielded his income from taxes for years. Hillary's supporters are already demanding changes to the tax code and Trump, as usual, cannot muster an intelligent defense on even a moderately technical topic.
As someone who built a business over 10 years, I can't think of anything that would do more to screw up the already languishing rate of new business formation than to somehow limit the deductability of business losses on future years' taxes.
I lost money for years in my business -- trying to get it going, trying to grow it, engaging in more than a few failed experiments of new services. I would have been much less likely to do so had I known that I couldn't offset future profits on my taxes with current losses.
I will add that making changes to the deductability of losses will only lead to some screwed up accounting behavior. For example, had I known that the losses would not have been deductible, I probably would have found excuses to capitalize a lot of my expenses, reducing paper losses early and getting tax deductions later in the form of depreciation. I probably could have saved some of the deductions but only with a lot of extra bookkeeping and accounting effort. Is this really the way we want to revive the economy, by shifting sucking up more of entrepreneurs' time on useless paperwork games with the IRS/