On March 5, 2012, Senior Analyst Stephen Ezell will participate in a round table for the Federal Reserve Bank-Atlanta on market conditions for small business growth and access to risk capital.
Create a Fair and Simple Tax for E-Commerce
Three pieces of legislation were introduced in Congress in 2011 to authorize states to require out-of-state retailers, including online sellers, to collect and remit sales tax. In this report, ITIF Senior Analyst Daniel Castro argues that Congress should find a balance that allows states to collect these taxes without imposing a burden on out-of-state retailers. He proposes three principles—fairness, simplicity and parity—that should guide the development of federal legislation and offers specific guidance on how such legislation should be crafted.
ITIF Testimony Before California Assembly Committee on Tax Policy and the High-tech Sector
In testimony before the California Assembly Committee on Revenue & Taxation, ITIF president Rob Atkinson urged state lawmakers to take steps to reform and expand tax incentives for innovation. Specifically, he recommended the state’s R&D tax credit be harmonized with the federal Alternative Simplified Credit and proposed revisions to the state’s basic research tax credit. He also urged the adoption of a “patent box” that allows profits from innovation to be taxed at a lower rate in order to drive job creation in California. Using tax policies such as these would help California harness the potential of its significant innovation infrastructure and entrepreneurial culture as well as compete with other states and countries at the cutting edge of innovation.
AGREE Act Aptly Named but More Bipartisan Accord Needed on Innovation
From time to time, there is a glimmer of hope for bipartisanship on innovation from Congress.The passage of the Patent reform act this year was one example. The American Growth, Recovery, Empowerment and Entrepreneurship (AGREE) Act, sponsored by Sens. Chris Coons (D-DE) and Marco Rubio (R-FL) is another. It is a package of practical actions to encourage and empower American innovators and job creators by focusing on taxes, trade, talent and technology, which ITIF regards as the columns of a solid economy recovery strategy.