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Abstract
Vulture capitalism, a subset of venture capitalism, is often the norm during the decline phase of business, when the enterprise passes the "tipping point" of economic inefficiency. The vulture capitalist seeks to disassemble the enterprise, ignoring the business's going concern intangible, and looks to sell the individual assets. Congress encourage investors that are seeking to create a revival of an enterprise by modifying the tax law to permit businesses to sell net operating losses and access tax credits in the free market and enhancing the research and development incentive, among other things. The enterprise itself or the investors might not necessarily know whether, at the outset, it is better to revive the enterprise, to dissolve the enterprise or to save some portion while destroying other portions of the enterprise. The enterprise and its investors might make these revival-versus-destruction determinations on a rate-of-return basis. Congress should enhance strategies that would serve to dissuade dissolution strategies. These strategies should include tax clawbacks and penalties against vulture capitalists who lie to the most vulnerable.