A lot of people would consider research and technology a good thing.
- A pesticide company is trying to develop a safer insecticide with less environmental impact.
- A drug company has a promising new cancer treatment, but more research is necessary.
- an American semiconductor company is close to developing ultra-thin silicon chips to compete with those made in Taiwan, but needs more research.
Under Donald Trump’s temporary tax “cuts,” (Tax Cuts and Jobs Act of 2017, TCJA), a company that spent $1billion on research could act, (for tax purposes) like it had spent $1billion on research. Research was treated like every other expense. Since an expense is not a profit, money spent on research was not subject to profit-tax.
Under Joe Biden, in 2022 the TCJA expired.
Donald Trump wants to renew the “cuts.” Dems are opposed, calling it corporate welfare, a corporate giveaway, a tax loophole etc. etc… To my knowledge no other country in the world does this. No other country gives research special punitive treatment like this.
How do you feel?
- Donald Trump is right. Research expenses should be treated like any other expense.
- The Libs are right. Research is bad. It should be treated as a bad thing. Only foreign companies should it and they should do it only overseas. Research expenses should be given special tax treatment punishing companies that do research.
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