There are competing incentives: on one hand things like creating jobs and driving innovation, and on the other it's the incentive to avoid tax loopholes. I think most people in Europe (I hate generalizing "Europe" but let's say Nordics and Germany) at least would be more upset about the presence of a loophole that for example allowed people to funnel money through a company and lower (what should have been) income tax, than they'd be upset over how much tax policy incentivizes startup creation.