The Impact of
A LOOK AT THE NUMBERS
The cancellation of amortization would increase America's standing in the world economically, while providing real benefits to companies and employees.
Increase in GDP
Increase in Capital Stock
(amount of shares companies can sell)
Increase in wage rates
New Full-Time Jobs created
We oppose R&D (Research and Development) amortization, which becomes effective in 2022 under federal tax legislation passed in 2017. You can find a clear explanation of the legislation here. R&D amortization should be repealed now. R&D amortization discourages innovation by requiring companies to spread tax deductions for R&D over 5 years instead of getting a current year tax deduction, which has been the law since President Eisenhower.
R&D amortization is an anti-growth and anti-competition policy that discourages the future innovations that will propel American economic growth, and could result in the overstatement of taxable income. Risk taking in R&D should be encouraged. Cancelling R&D amortization will help to ensure a vibrant and innovative US economy. Furthermore, full tax deductibility of R&D will help to ensure that high tech startups will be able to thrive, thereby creating American jobs and boosting the economy.