Foreign-owned companies reinvested more of their earnings here in the U.S. as a result of the Tax Cuts and Jobs Act (TCJA), according to a new study from the liberal Tax Policy Center.
This comes amid reports that the Biden Administration is looking to use crippling tax hikes to undermine this crucial investment infrastructure that has resulted in stronger innovation and research and development (R&D) here at home in the U.S.
As a result of TCJA…
- Foreign investment surged in the U.S., supporting good-paying jobs here at home.
- R&D investment skyrocketed, 25 percent higher than in the years prior to enactment. We can do more by permanently doubling the R&D tax credit and expanding innovation and good-paying jobs in America.
- American businesses competed globally, and brought home more income earned abroad thanks to lower U.S. taxes.
CLICK HERE to view the full study.
Bottom Line: Rather than build on these successes, President Biden has instead worsened the supply chain and inflation crises. Congress should instead be looking to make TCJA permanent and strengthen our investment here at home.