FACT CHECK: GOP Tax Reform Led R&D Boom—But Dems Want Washington In Charge
America can beat China on innovation with even better tax incentives for private investment
Democrats believe that higher taxes and spending will lead to stronger American innovation and research & development (R&D)—but even China keeps taxes on their technology firms that compete with American companies as low as 15 percent.
Here are the facts:
Democrats’ tax hikes jeopardize American research and development.
- President Biden wants to double taxes on investment, and put Washington in charge of all R&D funding—destroying the investment infrastructure that provides small businesses with financing.
- One company warned that a higher tax bill would threaten $5 billion in annual spending on capital and R&D.
- China keeps taxes on technology firms—that directly compete with American technology firms—at a low 15 percent.
Republican tax reform unleashed American innovation.
- Under Republican tax reform, America saw an R&D boom.
- Republican tax reform led to record R&D investment, 25 percent higher than in the years prior to enactment, and we can do more by permanently doubling the R&D tax credit and expanding innovation and good-paying jobs in America.
- Instead of repealing key policies that led to the Republican R&D boom, President Biden should work with Republicans to improve our low #24 ranking on global R&D incentives—rather than make us even worse off.
Democrats’ crippling tax hikes will ship U.S. jobs overseas.
- While millionaires and well-connected corporations receive hundreds of billions of dollars in loopholes and tax rebates, Main Street businesses will be hit with hundreds of billions of dollars in tax increases.
- In addition to having U.S. jobs shipped overseas, the non-partisan JCT found that 25 percent of the burden of Democrats’ tax hikes would be borne by workers in slashed wages.