Ask HN: Does Screwy SEC 174 tax reg make Canada a better place to bootstrap?
The US has traditionally been favored for tech startups due to tax incentives and venture capital, but recent changes may make Canada a more attractive option for bootstrapping ventures.
The decision between the US and Canada for launching a tech startup involves weighing various factors. Historically, the US has been favored due to its superior tax incentives, access to venture capital, and a more robust labor pool. However, recent changes, particularly concerning Section 174, which affects research and development tax deductions, have raised concerns for startups in the US. This has led to a reevaluation of Canada as a viable option for bootstrapping a tech venture. Canada offers free healthcare and social services, which can be appealing for entrepreneurs and their employees. However, the quality of these services has been declining due to underfunding and population growth. Despite these challenges, the current landscape may make Canada a more attractive option for bootstrapping, especially for those looking to mitigate risks associated with the US tax environment.
- The US has historically been preferred for tech startups due to better tax incentives and VC funding.
- Recent changes to Section 174 may impact the attractiveness of the US for new ventures.
- Canada provides free healthcare and social services, though their quality has declined.
- Entrepreneurs may find Canada a more appealing option for bootstrapping in the current climate.
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1 commentsDid these 2 go away?
And isnt cost of living in Vancouver and Toronto both quite high? And are either as appealing a place to live as big cities in the US?
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