R&D Amortization Hurts Economic Growth, Growth Industries, and Small Businesses
The current tax treatment of R&D expenses is irrational, complicated, and counterproductive. Fortunately, fixing this problem is a bipartisan issue.
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Expensing of Machinery and Equipment Should Be Made Permanent
Making expensing permanent is especially important now, when the economy is threatened with a recession and inflation remains high.
Kentucky Should Refrain from Expanding Its Taxation of Business Inputs
As final negotiations occur between the House and Senate, legislators should avoid adopting new policies that would jeopardize Kentucky’s business tax competitiveness.
Careful What You Wish For: CHIPS Subsidies Require “Excess Profits” Sharing
Instead of such a complex and inefficient system, policymakers should move to full expensing as part of the effort to build.
Chips Are Down in Semiconductor Tax World
The Senate has begun debate on the so-called Chips bill, which would provide $52 billion in grants and $24 billion in tax credits to supposedly strengthen the production of semiconductors in the U.S.
Trump-Biden Tariffs Hurt Domestic Manufacturing
As lawmakers today look for ways to boost American industry and reduce costs for consumers, they should pay attention to the mountains of evidence that the Trump-Biden tariffs have harmed American consumers and businesses.
Which Industries Would the Tax Hikes Target?
Using Tax Foundation’s Multinational Tax Model, we estimate the effective tax rates on controlled foreign corporation (CFC) profits under current law and under each of the proposed plans for business tax hikes.
Boost Semiconductor Manufacturing by Removing Tax Barriers—Not Creating Tax Subsidies
A bipartisan group of Senators introduced a bill to create a permanent 25 percent tax credit for investments in semiconductor manufacturing equipment and construction of related facilities—but their proposal would not address underlying bias against investment that exists in the tax code today.
Tax Policy Improvements Needed to Help Industries through the Semiconductor Shortage
As lawmakers evaluate how to respond to the global semiconductor shortage, they should consider allowing full cost recovery across all types of capital investment—inventories, machinery and equipment, structures, and R&D.
Attracting Manufacturing to the U.S. Should Start with Neutral Tax Treatment, Not Subsidies
Before considering industry-specific laws and subsidies for onshoring, policymakers should make sure the U.S. tax code is not biased against domestic investment in the first place.