ITIF Search

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

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.

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|Op-Eds & Commentary, 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.

September 16, 2021|Op-Eds & Commentary, Blogs

Lawmakers Should Strip Ill-Advised Tax Preference for Government-Owned Broadband From Reconciliation Package

The current draft of the House budget reconciliation package includes a tax credit designed to support municipal broadband. While this credit is somewhat narrower than some reports have suggested, it is still ill-advised.

September 8, 2021|Op-Eds & Commentary

Santa Claus Is Now the Patron Saint of American Politics

The excitement of Christmas and the presents that Santa Claus would bring best describes today's American politics. Each party is competing to win votes by providing the presents. The more the better.

September 7, 2021|Reports & Briefings

The Case for Repealing the R&D Amortization Provision in the 2017 Tax Cuts and Jobs Act

Staring in 2022, a provision in the 2017 Tax Cuts and Jobs Act will require companies to start amortizing their R&D investments over five years instead of expensing them in the same year they incur the costs. Congress should repeal the rule before it takes effect. Otherwise, companies will do less research in the United States, jobs will be lost, and U.S. competitiveness will suffer.

May 28, 2021|Op-Eds & Commentary

The Case for Improving America’s Research and Experimentation Tax Credit

As recently as the mid-1990s, the United States maintained the most generous R&D tax incentive in the world. As scholarly studies have shown, that helped America stay ahead of its competitors by boosting R&D investment, innovation, jobs, and GDP growth. Fast forward to today, and it’s a very different picture.

May 24, 2021|Op-Eds & Commentary, Blogs

Firms of All Sizes Benefit From R&D Tax Credits, and in Portugal Small Firms Benefit Most of All

Portugal’s R&D tax credit is effective not only in spurring more R&D, but also in leading firms to hire more researchers, and in increasing exports—particularly among small firms.

May 13, 2021|Op-Eds & Commentary, Blogs

As Tax Day Approaches, Millions of Americans Will Find the IRS Website Is Not Accessible for People with Disabilities

The IRS’ poor performance exemplifies the difficulty Americans with disabilities can face when trying to execute important and necessary tasks like paying their taxes, as well as the failure of many federal government agencies to provide equal access for all citizens.

Back to Top