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Research and Development (R&D)

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Carbon Taxes and the Future of Tax Reform, See more on green tax and climate change tax reform proposals

Carbon Taxes and the Future of Green Tax Reform

Our new analysis reviews the basic structure of carbon taxes, how they compare to the existing set of climate policies, and how they could fit into various pro-growth tax reform packages.

26 min read
Tax Subsidies for R&D Expenditures in Europe

Tax Subsidies for R&D Expenditures in Europe

Many countries incentivize business investment in research and development (R&D), intending to foster innovation. A common approach is to provide direct government funding for R&D activity. However, a significant number of jurisdictions also offers R&D tax incentives.

3 min read
Biden research and development tax treatment of R&D expenses R&D expensing R&D tax treatment in the US US COVID19 fiscal response Comparing fiscal responses to the pandemic House Democrats tax plan US competitiveness Build Back Better Act reconciliation bill

To Stimulate R&D Investment, Stop Penalizing it in the Tax Code

In his State of the Union Address, President Biden called for leveling the global research & development (R&D) playing field by increasing federal R&D spending, specifically by asking Congress to pass the bipartisan United States Innovation and Competition Act (USICA).

3 min read
tax fairness economic growth and funding government investments Creating Opportunity Through a Fairer Tax System Tax Foundation Finance Committee hearing

10 Tax Reforms for Growth and Opportunity

By reducing the tax code’s current barriers to investment and saving and simplifying its complex rules, lawmakers would greatly enhance the ability of Americans to pursue new ideas, create more opportunities, and build financial security for themselves and their families.

40 min read
Impending recession market crash recession definition federal reserve actionsfiscal policy inflation tax options, fiscal inflation taxes

Taxes, Fiscal Policy, and Inflation

Consumer prices rose by 7 percent in 2021, the highest annual rate of inflation since 1982. Where did this inflation come from and what might its impacts be? Tax and fiscal policy offer important clues.

5 min read
Reconciliation bill tax innovation

New Study Shows Tax Policy Has Strong Effects on Innovation

When examining how tax policy impacts the economy, researchers typically look at labor supply and investment responses. One other channel through which taxes impact the economy has been less studied: innovation.

3 min read
Compare 2021 patent box regimes in Europe (Patent box Europe data). Explore intellectual property box regimes in the EU Europe, also known as IP regimes in the EU Europe

Patent Box Regimes in Europe

Patent box regimes (also referred to as intellectual property, or IP, regimes) provide lower effective tax rates on income derived from IP. Most commonly, eligible types of IP are patents and software copyrights. Currently, 14 of the 27 EU member states have a patent box regime.

4 min read
Learn more about the HR 3 prescription drug bill (the Elijah Cummings Lower Drug Costs Now Act) and how it could reduce R&D spending and medical innovation. See more on pharmaceutical company revenues, emerging biopharma companies, and HR3 bill text.

H.R. 3 Would Reduce R&D Spending and Medical Innovation

Lawmakers are considering policy changes within the reconciliation bill that would reduce private R&D within the pharmaceutical industry and reduce the number of new drugs coming to market. Instead of hampering medical progress, policymakers should work to ensure that the tax code remains conducive to R&D spending and the resulting innovation.

5 min read
Ways & means tax proposal seeks to combat extraterritorial taxes and discriminatory taxes Global minimum tax revenue OECD Pillar Two revenue OECD impact assessment OECD Pillar One tax Pillar one amount a Biden interest limitation Biden interest deduction rule Biden interest expense limitation Business interest expense limitation Democrat Senate international tax overhaul discussion draft legislation (Wyden Brown Warner international tax overhaul) or Sen Wyden international tax plan,

Tax Foundation Comments on the Wyden, Warner, Brown Discussion Draft

The proposed restructuring of the GILTI and FDII regimes makes several changes to the tax base that are largely offsetting, leaving virtually all the revenue potential to be determined by the tax rates on GILTI and FDII and the haircuts on foreign tax credits. Lawmakers should carefully weigh the trade-offs between higher tax revenues and competitiveness.

12 min read