Get the latest news alerts: at Twitter.

Local Tech Wire

ARLINGTON, Va. – Every member of Congress will receive a letter this week signed by more than 1400 CEOs, founders, and entrepreneurs urging lawmakers to recognize the critical role that venture capital has played in the U.S. economy and retain a long term capital gains tax incentive for venture capital-carried interest.

Signatures were collected in a 24-hour period this week, demonstrating strong entrepreneurial opposition to a proposal in Congress to raise the taxes on venture capitalists to pay for short term tax extensions.

As the letter states, such a proposal would effectively double the taxes on those who are committed to building companies, creating jobs and bringing innovation to market at a time when America needs this activity the most.

The letter was signed by business leaders from more than 40 states, including regions rich in venture capital investment such as California, New England, New York, and Washington as well as areas that have emerging VC ecosystems like New Jersey, Ohio, Florida, and Pennsylvania.

Signers represented a broad base of industries including information technology, life sciences and clean technology, and included CEOs and other leaders from companies such as AMD, Akamai, Blue Tarp Financial, Cisco, EnerNOC, Infinera, Ironwood Pharmaceuticals, Novell and Riverbed Technology.

Additional signers included notable academics from institutions such as MIT; serial entrepreneurs and Institute Professors Robert Langer and Nobel Laureate Phillip Sharp.

The letter made three specific points, the first being that eliminating the capital gains incentive would discourage this important investment in America’s start-up companies. Second, that investment is critical to start-up company formation and growth. And lastly, the entrepreneurs asked Congress to consider other, less-damaging options to raise revenues.

Kate Mitchell, chair of the , expressed appreciation for the support received by the entrepreneurial community.

"It is our privilege as venture capitalists to work each day alongside the best and brightest entrepreneurs in the world,” Mitchell said. “Together, we have built companies, hired employees, and brought ground-breaking innovations to market.

“We are grateful for the support shown by our CEOs, founders and management teams to maintain the current system of tax incentives that has worked so well for so long,” she continued. “We hope to be in the position to continue to support these highly-talented entrepreneurs in their efforts to build the next generation of innovative companies."

The NVCA represents more than 425 VC firms in the United States.