https://macropaperwarehouse.com/authors/serhiy-stepanchuk/Serhiy StepanchukHugo -- gohugo.ioen-usThu, 01 Jan 2026 00:00:00 +0000https://macropaperwarehouse.com/papers/taxation-and-entrepreneurship-in-the-united-states/Thu, 01 Jan 2026 00:00:00 +0000https://macropaperwarehouse.com/papers/taxation-and-entrepreneurship-in-the-united-states/<p>This paper investigates how the level and progressivity of personal income taxes shape entrepreneurial activity in the United States, contributing empirical evidence, theoretical intuition, and a structural quantitative evaluation. The motivation is both descriptive — entrepreneurs own more than 40% of total capital and hire more than half of private-sector workers, yet their share of the population varies substantially across states and time — and normative, given growing policy interest in more redistributive taxation. The central question is whether a more progressive tax system, which simultaneously reduces the risk and the return to entrepreneurship, produces more or fewer entrepreneurs in practice.</p>