Usually the tax code encourages innovation and entrepreneurship with incentives and tax breaks specifically targeted at such ventures. Social entrepreneurs can certainly take advantage of these incentives and decrease the amount of taxes they owe the government in relation to a plain, vanilla corporation. But, even with all of these tax advantages, the social entrepreneur must still take a big hit by organizing as a for profit entity vs. a charitable non-profit. This seems to be a tax disincentive built into the tax code. No good at all.
Comments