Start-Up Failure and Tax

I have drawn a logarithmic curve illustrating the link between the rate of income tax businesses may face and the rate at which start-ups fail within the first six years of existence.

At 0% tax, 10% of start-ups fail, while at 10% income tax, 40% of start-ups fail within six years. The argument here is that start-ups should not be subject to income tax within their first six years, the time when they are most vulnerable to failure.

Horlor Curve Logarithmic