This is a terrible idea. So if you are a venture capitalist, you can't invest through your Corporation to generate a return of more tha $50k, and if you do, you will severely taxed -- much more than if you invested it personally?? This is their bright idea??? Under these rules you are severely taxed if you are successful in your corporate investments. It's sad, but it's obvious that no one with business experience is giving senior liberals the advice they need to help our economy prosper. Why wouldn't a VC just incorporate somewhere else (think USA) where there is no such restriction?  (Remember the small business tax only applies to the first $500k, so this strongly discourages big players from setting up investment vehicles here. Instead it is rationale to set up shop somewhere else). Sad, but true.