Congress Should Retain and Expand the R&D Tax Credit
WASHINGTON (Feb. 19, 2014) - During his campaign to become the 40th president of the United States, Ronald Reagan advocated supply-side economic policies that included tax reductions to spur economic growth. Following his election, Reagan won passage of the Economic Recovery Tax Act (ERTA) of 1981, which included the creation of the R&D tax credit, the first of its kind in the world.
Yet, while America pioneered the R&D credit and saw it jump start innovation and competitiveness during its early years, the OECD now ranks the United States just 17th in R&D generosity. As Congress considers comprehensive corporate tax reforms, there are differing opinions about the value, and effectiveness, of the R&D tax credit and how it should be utilized going forward.
Please join ITIF for a policy debate regarding the credit, its benefits and flaws, and its future use. The event will be held from 9 AM to 10:30 AM, Wednesday, February 2