Throughout America’s history it has been our pioneering spirit, our can-do attitude that has propelled the country forward. Over the past century, innovative ideas, and the new businesses they inspired, provided jobs and opportunities for Americans to live a better life.
Creating an American economic renaissance
The Launch America Initiative is a nonpartisan, grassroots effort to create economic growth that will impact the lives of millions of Americans. The mission of the endeavor is to help people turn their own personal American dream into a successful business startup.
A bold vision for the future
The Initiative introduces proposals and strategies for creating thousands of new businesses and new jobs all across the country. Launch America encourages the formation of all types of innovative business ventures – from brick-and-mortar stores to online companies – and in all different fields, not just high-tech, high-growth startups.
Primary goals and ideals
- To provide the opportunity for aspiring entrepreneurs all across America to get the support and funding they need to establish and build successful startups and early-stage businesses
- To enable startups to grow and thrive by bringing on board experienced investors, and offering educational programs and best-practice guidelines. Having a team will give the founder and new business a greater perspective and a broader range of experience and contacts.
- To increase exponentially the number of investors who fund startups and early-stage companies through a major new tax credit incentive and safety-net proposal.
- To structure the tax credit in such a way that it will generate jobs, tax revenues and economic growth, and not be a burden to the Government.
- To create a new, clearly written SEC exemption, so that all Americans who choose to invest, in a startup, have the opportunity to do so,
- To award cash prizes to promote the most innovative business startups across America.
- To foster the ideal of service by encouraging, and creating opportunities, for men and women to get involved and use their expertise and experience to help startups grow and flourish.
- To support each of the Launch American objectives outlined above, through a national public awareness campaign promoting the many benefits of forming and investing in startups.
The tax credit incentive
Specifically, the Launch America Initiative proposes that an investor in a startup or early-stage company receive a tax credit of 16% per year for five years, which, together with the payments received from the startup, will protect 80% of the investment made.
Requirements for receiving the tax credit
- A minimum of two investors for each startup, who will review the qualifications of the founder(s) and their business plans. This requirement will provide a screening filter to select those entrepreneurs and their proposed startups that are ready to receive funding.
- A stipulation that the individual tax credit is to be written off over five years, 16% per year, thus allowing time for businesses to grow and for their corporate and employee taxes to offset the tax credits.
- An agreement that a percentage of the business’s gross revenues will be paid to the investors each year, offsetting the investors’ allowable annual tax credits.
- A requirement that the startup must create jobs for independent employees with a minimum annual payroll of $40,000 (or an amount set by Congress).
With these incentives and requirements, the objectives of the Initiative are to:
- Provide over $25 billion in each of the first two years of the program through angel and other investors
- Fund over 200,000 new businesses each year
- Create over 500,000 new jobs each year
- Generate hundreds of billions of dollars of new business revenues and over thirty billion dollars in net tax revenues to the Government during the first six years.