30th Anniversary of Tax Reform a Reminder that Action is Needed to Protect American InnovationOctober 20, 2016
WASHINGTON, DC – Saturday, October 22nd is the thirtieth anniversary of the bipartisan Tax Reform Act of 1986 being signed into law. Reflecting on that landmark success, American Innovation Matters today urged policymakers to again seek a bipartisan tax reform package that includes an IP Box to secure American innovation, jobs, and earnings.
“Thirty years ago, Democrats and Republicans came together to reform a broken tax code,” said AIM spokesperson Jim Morrell. “Our tax code today does not measure up to the challenges faced in the global economy. As other nations institute tax policies designed to lure American jobs, innovation and investments abroad, the United States needs to follow suit with policies such as an IP Box to keep our most innovative companies here at home.”
An IP Box policy provides a lower tax rate on income derived from intellectual property. Recognizing that IP is highly mobile, a growing number of countries are adopting IP Box policies. These policies put American companies under immense pressure for inversions and foreign takeovers. This pressure is being compounded by the United States’ broken domestic tax code and widespread global acceptance of the OECD’s Base Erosion and Profit Shifting (BEPS) plan. Under BEPS, many countries with IP Boxes are now enacting new restrictions designed to lure American IP and jobs overseas.
Tax reform that includes an IP Box would ensure critical American jobs, research and development, and earnings stay in the United States. An IP Box also would protect our nation’s domestic tax base and allow our biggest innovators to continue to grow and compete globally
AIM’s membership includes Cisco, Boeing, S&P Global, Biogen, Apple, Intel, Adobe, Oracle, Facebook and other companies whose strong investments in R&D and innovation help create new jobs and spur economic growth.