WASHINGTON, DC — Today, House Ways and Means Committee members Charles Boustany (R-LA) and Richard Neal (D-MA) released a bipartisan discussion draft for an “innovation box”—a special lower tax rate on income derived from intellectual property. Such a proposal is likely to be part of broader international tax reform that the committee is pursuing, and Chairman Paul Ryan (R-WI) released the following statement in response.
“We have to fix our entire tax code—top to bottom. But if we don’t act soon to keep American businesses here at home, that challenge is going to be much harder. Foreign competitors are taking over U.S. companies at an alarming rate, and international pressures are only going to make the problem worse in the coming months. The proposal from Reps. Boustany and Neal can help us stem the tide and protect good American jobs. It will also help ensure the United States continues to be the world’s leader in innovation. Their plan would allow American businesses to better compete with foreign companies and keep their research and development facilities here in the U.S. This is just one piece of international tax reform, but it’s an important one. I applaud Charles and Richie for their work, and look forward to refining the proposal as we move forward on a broader plan to make America more competitive and promote high-paying jobs.”