New Report Urges Tax Reform with an IP BoxSeptember 20, 2016
WASHINGTON, DC – A new report released yesterday by the Information Technology & Innovation Foundation (ITIF) highlights problems with the U.S. tax code and calls on Congress to pursue tax reform with an IP Box, saying it is the most important thing Congress can do to improve the national economy.
The report argues responsible tax reform will boost American competitiveness, spur investment, and improve the nation’s fiscal balance. It says an IP Box would respond to lower foreign tax rates on intellectual property that can be blamed for driving American innovation abroad.
The report quotes the bipartisan Senate Finance report released last year that warned of how tax changes being adopted abroad will put pressures on American intellectual property:
“The co-chairs agree that the anticipated impact of the new nexus requirements on innovation box regimes will have a significant detrimental impact on the creation and maintenance of intellectual property in the United States, as well as on the associated domestic manufacturing sector, jobs, and revenue base.”
“ITIF’s report recognizes the challenging tax landscape for American companies and American innovation,” said American Innovation Matters (AIM) spokesperson Jim Morrell. “Tax reform with an IP Box is critical for protecting American intellectual property, jobs, and earnings.”
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.