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Research and Development (R&D)

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Improving Tax Treatment of R&D Would Boost Productivity and Growth US Research and Development Tax Treatment Trump Tax Cuts and TCJA Extension and Reform

Improving Tax Treatment of R&D Would Boost Productivity and Growth

As Congress debates expensing and other policies impacting business investment, lawmakers should consider the importance of business investment in research and development (R&D) as a driver for economic growth. Recent studies suggest that the economic benefits of R&D spending are even greater than previously understood.

7 min read
2025 Tax Reform TCJA Offsets Budget Offsets

Picking the Right Budgetary Offsets Key to Tax Reform Success

In a perilous economic and fiscal environment, with instability created by Trump’s trade war and publicly held debt on track to surpass the highest levels ever recorded within five years, a lot rides on how Republicans navigate tax and spending reforms in reconciliation.

6 min read
Trump reciprocal tariffs EU VAT The European VAT is Not a Discriminatory Tax Against US Exports

The European VAT is Not a Discriminatory Tax Against US Exports

The Trump administration appears to be moving in a “reciprocal” policy direction despite the significant negative economic consequences for American consumers of across-the-board tariffs on goods coming into the US. However, the EU’s VAT system should not be used as a justification for retaliatory tariffs.

6 min read
Lawmakers debate permanent bonus depreciation reform options including permanent full expensing and other cost recovery improvements manufacturing economy us workers

Expensing: It Pays to Be Permanent

As lawmakers work through the reconciliation process, permanently enacting improvements to deductions for capital investment and research and development (R&D) costs will create an economically powerful package.

8 min read
Trump Global Minimum Tax Order

Five Things to Know About Trump’s Global Minimum Tax Order

This week, the incoming Trump administration issued a day-one executive order on the global minimum tax agreement known as Pillar Two, which seeks to ensure multinational corporations pay at least 15 percent in income tax.

6 min read
Trump Tax Cuts, Tariffs, and Reconciliation After the 2024 Election

Questions About Tax Cuts, Tariffs, and Reconciliation After the Election

Fiscal pressures are likely to weigh heavily on lawmakers as they craft a tax reform package. That increased pressure could result in well-designed tax reform that prioritizes economic growth, simplicity, and stability, or it could encourage budget gimmicks and economically harmful offsets. Lawmakers should avoid the latter.

8 min read

What Sets the US and China Apart on Tax?

Broad, pro-investment tax policy matters for growth, and the US has plenty of opportunities to make improvements, particularly given the advantages our cross-Pacific rival confers on its firms.

5 min read

Can US Tax Reforms Keep Up with China?

How does tax policy shape a nation’s competitiveness? Today, we’re diving into the showdown between the US and China, exploring how China’s enticing tax incentives pose a formidable challenge to America’s economic supremacy.

Trump Harris corporate tax proposals US corporate tax rate 2024 election impact on US corporate income tax policy

The Corporate Tax Rate Tug-of-War

Depending on the 2024 US election, the current corporate tax rate of 21 percent could be in for a change. See the modeling here.

4 min read
TCJA compliance and TCJA complexity costs did the Tax Cuts and Jobs Act simplify the US tax code?

How Did the Tax Cuts and Jobs Act Simplify the Tax Code?

Not every change in the Tax Cuts and Jobs Act simplified the tax code. However, the TCJA reduced compliance costs overall for individual filers, and allowing fundamental structural improvements to expire would make the tax code worse.

5 min read