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FullContact CEO Bart Lorang on the disadvantages of tax breaks offered by the government.
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Tax breaks sound like an easy and it's a bonus to -- company's bottom line to come are actually passing them opt.
Since they're so complicated and believe it or not the cost to comply with tax rates can sometimes come up higher than the actual savings so with -- -- to -- its first -- it.
Why he's not taking advantage of all the savings he's entitled to small business owner -- -- he's the CEO of Denver based tech start up all contact art.
-- it is coming back to the show.
No -- -- anytime -- first account you hear about if you hired -- the person you do that is if you do that it ever it's gonna get your tax rate be you're saying it's not worth.
Yeah absolutely not worth it you know -- -- proposals all the time from tax consultants saying hey you're not taking as of this tax -- -- this tax credit -- this tax deduction.
And it seems like it changes every single year.
And so I look at -- say you know I don't know if this is really worth it.
I tried it one year.
And ended up actually paying the -- -- more than my tax savings that a reverse all of my changes I made out the next year so I said you know I'm fed up a bit.
Not gonna do it.
Yeah -- -- really about the money that you have to pay to be counter to the tax attorney that your working with or is it that.
You know you you bring on an employee at the tax benefit the baton down the road there's hidden costs mean.
What is -- it which -- -- -- the most I guess.
We'll.
Probably you have to jump through a million different -- to take advantage of certain tax breaks.
And then when you do the law might change and then you have to undo all those things you baked into your business processes so that's really the biggest cost plus.
Owners only have so many cycles and their day and paying attention the tax breaks this is really really difficult when you can be getting more customers are retaining our customers.
That's right I mean as a business -- you have to be out there drumming up more business I mean you're the Smart guy that came up with the idea of giving.
Your employees the 7500 dollar bonus in order to go on vacation just in case our audience has forgotten you which I don't know how that's possible.
But you've got all that great PR around it then also you've got it a bunch of great applications from people that we're looking for engineering jobs you certainly know what you're talking about.
That the government could do for you or not do.
That would help your business growth -- day.
Yes so I mean from our perspective -- a lot of owners and CEOs small businesses.
And really it's a question of of access to capital is what we see in this country -- and and the difficulty of getting capital whether it's equity investment or debt offerings.
And I would say that the could single wasn't -- the government to do is make Angel investments in private companies less than a hundred people.
Free from capital gains tax write these people are risking a 100% of their investment.
And very risky investments and small companies and making that actually helping investors out of the in the owners get access to capital then -- be incentive -- -- and -- -- What's really interesting idea.
Better or equity -- that whatever investment company that has under a hundred employees.
That being tax free to return on that I'd heard that before you know is that it would try that -- thought about.
Not a double try another there's of several venture capitalists like Brad -- -- group who.
Who are proponents of this policy and we're trying to get support -- -- -- -- And obviously down the road I mean this could cost the government a ton of money if you think about for example.
Mark sector birds dad.
Who put money into FaceBook if you know when when -- when it was just a little tiny startup in first idea at this point would you put a cap on it because then.
All the money that his dad made off this or even mark himself that would be tax free at this point out that the government would like that what do you think about a ceiling on it over time.
You have a -- That's sort of the big chunk vs all the thousands of jobs that -- -- -- -- -- directly and indirectly in the FaceBook ecosystem.
All the -- the built around -- platform to look at that taxation issue compared to one extreme case of -- -- -- fictional that the put money and I frank and I know this guy he's an iris.
That the bigger number -- but that I don't you know I know put money into FaceBook but the point is the long tail of all the other view raising taxes is bigger than the sort of the single out -- So you know you're saying that people take the risk that they should have that potential for that big payday at the end of today.
-- and -- -- you know nine out of San Angel investments fail anyways right but it gets things going.
Yeah gets jobs created -- yielding investments what -- really get that.
Aren't already I love your perspective thanks for coming on again we appreciate you Wear your T -- -- off our audience -- up below -- -- -- -- contact -- -- market taking advantage.
Of the nationwide TV exposure I love the way you do business.
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