Forty years ago, 18 of the world's largest companies built their headquarters in America. Today, only six of the world's 20 largest non-financial, and three of the 20 largest financial companies, have chosen to be headquartered in the U.S. This alarming trend draws even greater attention to the U.S. antiquated corporate tax system-a system that is driving capital investment out of America to our foreign competitors.

• The U.S. is the only large economy with both a worldwide tax system and a corporate tax rate greater than 30%.

• If tax deferral policies were eliminated, U.S.-based companies face a significant increase on after-tax revenue. This would provide a competitive advantage to foreign-owned competitors abroad and allow them to reinvest more, raise funds for new investment more easily, and sell products at lower prices than U.S.-based companies.

• Given the borderless nature of 21st century business, the ability to compete globally is a necessity for the success of most U.S. companies.

Competitive international tax policies must not be confused with well-intentioned initiatives to close "tax haven" loopholes.  To secure our economic future and place in the global marketplace, the U.S. must enact and/or retain tax policies that allow American companies to compete globally. Without such policies, America will no longer be an attractive place to do business.

The adoption of modern information technology in health care, including electronic medical records, is the single most important step that can be taken to simultaneously reduce costs, improve quality, and prevent medical errors.

As the high-tech industry continues to be a leader in research and development spending, it is essential to provide the necessary IP platform in which to lead the innovation economy.  ITI will continue to advocate for expanded IP enforcement and protection within the U.S. Congress, federal agencies and worldwide regulating agencies.

Patents are intended to encourage and protect innovation, but problems with low quality patents and rising legal costs are stifling the ability of companies to compete globally, which harms the U.S. economy and job growth.  

An effective U.S. patent system will 1) have a much improved patent examination process to ensure high quality, valuable patents and 2) will cut down on frivolous, disruptive patent lawsuits that discourage growth and innovation.

The Research and Development (R&D) tax credit was originally enacted in 1981. However, on December 31, 2005, the credit expired for the twelfth time in its history.  In the past, there have been efforts to make the R&D tax credit permanent because most business R&D initiatives span five to ten years. Enactment of a permanent R&D tax credit would enable companies to have certainty in their budget and tax planning. Support for the R&D tax credit in Congress has always been strong and bipartisan. The main hindrance to its permanent extension has always been its cost.

ITI urges Congress to support investment in U.S. technology and innovation by passing legislation that supports a more robust R&D tax credit improving the competitiveness of the U.S. high-tech sector, as well U.S. businesses generally.

We invite you to read about the ongoing educational efforts of the high-tech industry in our recently released education report, Educating the Innovators of Tomorrow: A High-Tech Industry Blueprint. 

In its work with the FCC, Congress, and other relevant policymakers, ITI seeks to shape policy by informing key players of the benefits and barriers posed by transitioning a 20^th century communications regulatory model to the needs of the 21^st century, which is increasingly dominated by wireless and web-based modes of communication.

ITI also recognizes the potential of its member companies to harness private industry’s expertise to craft and implement solutions that reduce the need for additional government regulation.

Specific ITI telecommunications priorities under the FCC’s jurisdiction include:

• Identification of new spectrum (range of frequencies) for wireless broadband;
• Broader allocation of spectrum to licensed and unlicensed broadband;
• Revision of outdated universal broadcast service, inter-carrier compensation, and rights of way regulations to ensure affordable access to broadband;
• Promotion of a deregulatory framework for web-delivered, Internet protocol (IP) -enabled products, services and content;
• Broader deployment and adoption of affordable high-speed broadband, wireline and wireless; 
• Reform of the Universal Service Fund (USF) to meet 21^st century needs;
• Greater openness and regulatory tolerance for network management and managed services;
• Greater transparency and deterrence of broadband providers from discriminating against unaffiliated content;
• Promotion of a safe and secure online environment; and
• Access to high speed and quality broadband.

Highly educated workers add value to the labor force by increasing productivity, strengthening research capabilities, and developing innovative products. 

American businesses must have access to the individuals who will help develop tomorrow’s technological innovations and keep America’s economy growing strong. U.S. policy should provide both long- and short- term solutions to help strengthen America’s workforce.