WTIA Pushes for Federal Tax Changes
Although the federal government is shut down (hopefully temporarily), the key issues facing Congress are still there.Â While we are hearing a great deal about the inability of Congress to agree on a budget that has caused a legislative stalemate, the tech industry still cares about immigration reform and a wide range of tax issues.
Yesterday WTIA communicated with Washington’s delegation in the House of Representatives regarding the taxation of earnings outside the United States.
The U.S. corporate tax rate is among the highest in the world, which creates disincentives to subject foreign earnings to the U.S. tax code.Â At the same time, there are myriad offsets, credits andÂ deductions that serve to distort business activity to keep tax liability low.
Essentially U.S. tax law is driving innovation overseas where the incentives to profit from R&D and innovation are much higher.Â The U.S. should be encouraging innovation and investment in the U.S. by adopting a tax code that doesn’t penalize intangible property over tangible property.
WTIA’s letter is linked at the top of this post for you to read.