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Taxes and Budget

As nations engage in a race for global advantage in innovation, ITIF champions a new policy paradigm that ensures businesses and national economies can compete successfully by spurring public and private investment in foundational areas such as research, skills, and 21st century infrastructure. In the area of tax and budget policy, ITIF focuses on how tax policy and budgets can boost investment, competitiveness, and economic growth.

Taxes and Budget

Publications and Events

February 15, 2023|Reports & Briefings

Estimated State-Level Employment Impact of Enhancing Federal R&D Tax Incentives

Tax incentives for research and development (R&D) in America are less generous than in comparable countries—and now prevent firms from expensing the full value of R&D investments in the first year. Enhancing R&D tax incentives would create high-paying jobs across the country.

January 17, 2023|Blogs

Fact of the Week: Key Industries Are the Most Affected by the Elimination of Full Expensing of R&D Activity

Economists agree that because most of the benefits of R&D and its technological breakthroughs accrue to entities other than the investing firm (e.g., customers, competitors, etc.), the current level of R&D investment is well below what would be socially optimal.

December 21, 2022|Blogs

Top 10 Tech Policy Pronouncements for 2023

As Yogi Berra once said, making predictions is hard, especially about the future. So, looking ahead to the New Year, ITIF can offer predictions with only 90 percent confidence. The other half is prescriptive.

November 28, 2022|Reports & Briefings

Why Congress Should Restore Full Expensing for Investments in Equipment and Research and Development

The tax law allowing firms to fully expense their research and development (R&D) costs expired at the end of 2021, and full expensing of equipment costs will begin phasing out in 2023. This decreases firms’ incentive to invest in these key drivers of economic growth and competitiveness. Congress should restore and make permanent full expensing for these investments.

October 17, 2022|Blogs

Fact of the Week: OECD Countries More Reliant on Corporate and Social Insurance Taxes for Tax Revenue

Between 1990 and 2020, the Organization for Economic Cooperation and Development (OECD) has become more reliant on corporate and social insurance taxes and less reliant on individual taxes for revenue.

September 6, 2022|Blogs

Fact of the Week: The US Has Just the 20th Most Generous Capital Allowances Among OECD Countries

In 2021, the United States ranked 20th among the 38 Organization for Economic Cooperation and Development (OECD) nations with respect to capital allowances, per data from the Tax Foundation.

August 3, 2022|Op-Eds & Commentary

Help US Companies Compete Against China on Technology Standards

Ensuring that the open, voluntary and industry-driven standards process prevails over China’s “standards mercantilism” will require action along a number of fronts, including providing financial support for companies to participate in the international standards process.

December 20, 2021|Op-Eds & Commentary, Blogs

What’s Wrong With the Senate’s Proposed 15 Percent Minimum Corporate Tax

In the quest for “payfors” for the Build Back Better spending package, Senate Democrats have proposed a 15 percent minimum tax on corporations in the United States with at least $1 billion in annual “book value” profits. But as structured it is bad public policy—not only because it risks politicizing how companies book profits under FASB rules, but also because it will reduce the value of certain tax incentives companies have been given to advance key public-interest goals.

December 13, 2021|Blogs

Fact of the Week: A 1 Percentage Point Increase in Local Business Taxes Decreases R&D Spending 7 Percent After 8 Years

If policymakers want to continue supporting innovation and the public benefits that innovation brings, then tax rates should be set with the interests of both public revenue and scientific progress in mind.

October 8, 2021|Op-Eds & Commentary, Blogs

Increasing Taxes on Innovation-Based Traded Sectors Will Reduce U.S. Global Competitiveness

Raising taxes on companies that compete in global markets, particularly in knowledge-intensive, high-value-added industries, is a recipe for a larger trade deficit, fewer good jobs, and a weaker national defense industrial base.

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