&gt;  Income tax is a tax on personal, individual income and should have no impact on startups.<p>No, just because a tax is levied on individuals doesn&#x27;t mean the effects of the tax are limited to individuals.<p>(In fact, just because a tax is levied on one party doesn&#x27;t even mean that party is the one really paying for it, in the end! This is the concept of <i>tax incidence</i>, which determines the entities who really feel the burden of any individual tax, independently of where it&#x27;s collected).