What part of the US tax code retards startups? From what I can tell, for people who are aggressive about taxes, it helps them: search YC for "S-Corporation" and "reasonable salary".

I've never heard someone say "I was going to start a company, but the tax situation is all screwed up." On the other hand, I have heard "I was going to join a startup, but I can't give up my health insurance" several times in the last few months.