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 26 at ITIF, 1101 K Street, NW, Suite 610A. Steven Pearlstein, Economics and Business Columnist for the Washington Post, will moderate the debate between Robert Atkinson, President of the Information Technology and Innovation Foundation (ITIF) and Martin Sullivan, Chief Economist with Tax Analysts.
Atkinson will argue the credit is central to promoting American innovation, private investment and job growth and needs to be a pillar of our economic strategy. Sullivan will counter that the problem is not with the credit itself but its execution, and therefore should be eliminated.
The event is free, open to the public and complies with ethics rules.
The Information Technology and Innovation Foundation (ITIF) is a non-profit, non-partisan think tank whose mission is to formulate and promote public policies to advance technological innovation and productivity internationally, in Washington, and in the states. Recognizing the vital role of technology in ensuring prosperity, ITIF focuses on innovation, productivity, and digital economy issues. Learn more at www.itif.org.