Policy - Tax Policy
In the 1960s, 18 of the world’s largest companies built their headquarters in America. Today, only six of the world’s 20 largest non-financial companies have chosen to be headquartered in the U.S. This alarming trend serves to highlight the problems of an antiquated U.S. corporate tax system that is driving capital investment out of America and into the hands of our foreign competitors.
We live in a worldwide marketplace; it’s time America had a world-class tax system that helps to spark new jobs and new industries across the country.
ITI advocates for tax reform that levels the international playing field. We consistently have urged the federal government to enact a tax system that makes America more competitive and a magnet for job creation and business investment. In working with Congress, ITI seeks to lower the corporate rate in a fiscally responsible manner, move to a territorial system that keeps job creators from being taxed twice on their earnings, and make permanent incentives for breakthrough research and development. These pillars will help to spark job creation and innovation throughout the U.S. economy.
The U.S. is the only large economy with both a worldwide tax system and a high corporate tax rate – in fact, the highest corporate rate in the world. Lowering the rate to 22 percent would bring the U.S. in line with foreign competitors. It also would be a major boost for small businesses across the country. Right now, American companies operating globally directly sustain more than 22 million U.S. jobs and 41 million jobs indirectly. They buy $3 billion in goods and services from small businesses here at home, with a cumulative impact of more than $1.52 trillion. Lowering the tax rate would only strengthen the partnerships between large and small businesses, putting more people to work and generating new opportunities for the country.
Shifting from a global to a territorial tax system will relieve American companies from double taxation and harmonize our tax system with the majority of the developed world. Currently, earnings by a U.S. company abroad can be taxed twice: first, by the foreign country where the sales took place; and, second, by the U.S. government when the earnings come home. This double taxation creates a disincentive for U.S. companies to bring those earnings home and invest them here. A territorial system prevents double taxation, gives the economy a much-needed boost, and puts U.S. companies on the same competitive level as many of their foreign competitors.
Finally, research-and-development innovations lead to new patents, products, and jobs. Since it was created in 1981, the R&D tax credit has a proven track record of stimulating U.S. investments, wage growth, consumption, and exports. Yet, the U.S. has allowed innovation incentives to lapse completely. It’s time to encourage breakthrough technologies to create new industries and jobs.
To secure our economic future and innovative leadership in the global marketplace, the U.S. must introduce tax policies that allow American companies to compete globally. Without such policies, America will no longer be an attractive place to start and grow a business. For these reasons, ITI urges Congress to support investment in U.S. technology and innovation by passing legislation that will improve the competitiveness of the U.S. high-tech sector, as well as U.S. businesses generally.
- ITI Digital Tax Submission to the OECD (October 16, 2017)
Multi-Association Repatriation Letter to Treasury Secretary Mnuchin (August 11, 2017)
ITI joined a large coalition of more than 50 trade organizations from a wide-range of industries across the U.S. economy released a letter today addressed to U.S. Treasury Secretary Steven Mnuchin on the ...
ITI section 385 comments to IRS (July 07, 2016)
ITI comments to IRS regarding new section 385 tax rules proposals submitted on 7-7-2016
Technology Sector Presidential Platform Letter (May 04, 2016)
Technology Sector Presidential Platform Letter
House Extenders Key Vote Letter (December 16, 2015)
ITI sent letter to members of the House of Representatives, throwing its strong support behind the Protecting Americans from Tax Hikes (PATH) Act that makes the research and development (R&D) tax credit ...
Tech Industry Lays Out Tax Reform Priorities to Congress (July 18, 2017)
The United States last passed comprehensive tax reform in 1986 before anyone could conceive the transformative impact the digital economy would have on society. Businesses of all sizes are harnessing the ...
Now is the Time to Talk Tech and Tax Reform (March 09, 2017)
On Monday, ITI is hosting a tax reform conversation and the timing of this event could not be better—tax reform is a hot topic in the nation’s capital. The political alignment of the White House and Congress ...
Tech’s Legislative Priorities for the 115th Congress: A Blueprint for American Innovation (January 11, 2017)
The start of the 115th Congress and the upcoming inauguration of President-elect Donald Trump on January 20th present Washington with the opportunity to address the economic concerns voiced by voters last ...
Tech Wins in the 114th Congress (December 21, 2016)
The conventional wisdom in Washington always holds to not expect much from divided government, and those expectations only lower heading into a presidential election year because hyper-partisanship can ...
Colombian Tax Reform: An Essential Step Towards Long Term Economic Strength (October 06, 2016)
Over the last decade, Colombia has steadily embarked on a path towards becoming one of the leading economies in Latin America. Colombia is in the midst of a remarkable transformation that stands to improve ...
Tech Industry Raises Concerns Regarding EU’s Most Recent State Aid Decision (October 04, 2017)
WASHINGTON – ITI, the global voice of the tech sector, released the following statement by President and CEO Dean Garfield regarding today’s decision by the European Commission to require Luxembourg to ...
ITI President Commends Congress and White House for Leadership on Prioritizing Tax Reform (September 27, 2017)
WASHINGTON – Today the technology industry trade group ITI, the global voice of the tech sector, released the following statement from CEO and President Dean Garfield after Congressional leaders and the ...
After E.U. Tax Proposal, Tech Industry Calls for Modernization of U.S. Tax Code (September 21, 2017)
WASHINGTON – Today technology industry trade group ITI, the global voice of the tech sector, released the following statement from CEO and President Dean Garfield after the release of the European Commission ...
Over 50 Industry Groups Write to Mnuchin on Tax Reform and Repatriation Treatment (August 11, 2017)
WASHINGTON – ITI, the global voice of the technology sector, joined a large coalition of more than 50 trade organizations from a wide-range of industries across the U.S. economy in releasing a letter today ...
Tech Industry Says Tax Reform Urgently Needed for an Innovative & Job-Creating US Economy (July 27, 2017)
WASHINGTON – Today technology industry trade group ITI, the global voice of the tech sector, released the following statement from Senior Vice President of Government Affairs Andy Halataei after congressional ...