The recent debate over corporate inversions (U.S. companies reincorporating themselves in nations with lower tax rates) threatens to derail progress on comprehensive tax reform even further. The administration and some in Congress seem set on treating the symptom rather than the disease. This is unfortunate because broader reform is both necessary and doable.
Shaming is no Substitute for Corporate Tax Reform
The steady rise in U.S. corporations buying foreign companies and then moving their headquarters abroad is not personal, it’s just business. It reflects the increasingly obvious fact that America’s high corporate tax rates put our companies at a competitive disadvantage against foreign companies, especially when competing for global markets.
Letter in Support of the Social Security Commission Act of 2014
ITIF joined other leading think tanks in supporting the introduction of legislation designed to address the critical fiscal crisis facing Social Security. The bill, co-sponsored by Congressmen John Delaney (D-MD) and Tim Cole (R-OK), would create a bipartisan commission tasked with making recommendations to Congress, including proposed legislation, for achieving solvency in the Social Security trust funds for a period of at least 75 years.
Misinformation in the Internet Tax Freedom Act Debate
The Internet Tax Freedom Act keeps broadband prices down and encourages faster adoption rates of internet technology. However, the Center for Budget and Policy Priorities' Michael Mazerov claims that price is not a significant factor in limiting broadband adoption. The evidence says otherwise, including the evidence that Mazerov himself cites. In reality, the literature shows that cost has a large impact on broadband adoption and is the limiting factor for most non-subscribers.
New Paper Confirms Growth Benefits of R&D
A new working paper examines whether R&D policies have short- or long-term economic impacts, finding that there are in fact persistent, long-term benefits for economic growth rates. However, the long-term effects come primarily from R&D tax credit policies, as opposed to R&D subsidies. It is therefore critical to continue to support and even increase the R&D tax credit.
Expand and Make Permanent the Research and Development Tax Credit
The Obama Administration should rethink its opposition to the R&D Tax credit bill recently passed in the House. Raising the credit from 14 to 20 percent could boost GDP by $66 billion a year and help create 162,000 jobs.