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| Credits: RandDTax |
There is one thing that has always set the American economy apart; it is the spirit of innovation that drives the American entrepreneur across all verticals to dream big, think hard and take calculated risks, with one singular purpose in mind - change the way things have always been done!
It is however important to understand that the main reason why the innovative spirit has always been alive and well in the United States, is due to the environment that has fostered, encouraged and engendered that spirit.
Over the years, perhaps due to the culture of greed and unbecoming avarice that permeated Corporate America, governmental regulations have become necessary, with the objective of not only protecting the American consumer, but also potentially preserving the integrity of the capitalist system.
My motive for writing this piece is centered in the belief that the bad behavior of corporate executives over the years has projected the wrong image (of Corporate America) with most Americans blaming the recent culture of careless risk-taking and greed, for the economic collapse of 2008.
While there is the push by most state governments and perhaps the federal government to find a way to tax corporations more, as they (the former) seek to balance their budget(s), they are however losing sight of one thing - the path towards real economic recovery and increase in jobs (particularly in the private sector) is through formulation and passing of initiatives, that promote growth, through innovation.
One of the surest ways to promote growth through innovation is in the area of Research & Development (R&D) tax credits.
Created by the U.S. Congress in 1981, the R&D credit has always been supported by the largest group for businesses in the United States - the U.S. Chamber of Commerce as well as business and industry watchers.
Recently though, critics of the R&D credit have been campaigning against it (and losing, thankfully), calling the tax credit a costly corporate hand-out that has done little to encourage more hiring and investment.
What opponents of the R&D credit however fail to mention is that it remains one of the surest ways to not only help manufacturers achieve cost and efficiency savings, but also help stimulate the economy, through more hiring and increased investment.
At a time when unemployment in the technology sector remains rather low (at less than 3% compared to the general unemployment rate of 8%), removing an avenue for increased investment and improved efficiency would indeed be fool-hardy.
One can only hope that the pervading anti-corporate sentiment does not becloud sound judgment on the part of our elected officials.
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