Deducting losses or capital reinvestment from your taxes is in no way a subsidy or even a tax break at all. That is just accounting at it's most simple. You take the money coming in and subtract the expenses going out. Now yes obviously it gets more complicated because you can spread those losses out over time etc but it is still the same basic concept. And no I am not saying we should rely on startups alone for growth. Clearly most of the growth will come from existing buisnesses. But the fact is without new buisnesses our economy would not survive.