President Biden has said: “You know, decades ago, the United States government used to spend 2 percent of its GDP — its gross domestic product — on research and development. Today, we spend less than 1 percent. I think it’s seven-tenths of 1 percent.”
As job creators and businesses brace for Biden’s $2 trillion tax increase, some companies, including Raytheon, are signaling that they’ll have to cut billions in R&D – which poses a huge risk to American jobs, wages, and our competitiveness. Under Republican tax reform, America saw an R&D boom. Raytheon’s CEO said it himself:
“It means I have to reduce my investment budget by about 20%… I’m not sure that’s exactly what the president wants to have us do.”
“It’s a pretty simple discussion … If you want U.S. companies to invest in technology and innovation, you have to have incentives to do that here in the United States.”
- China spends more public dollars on R&D than America because it is a Communist country. America’s R&D sector thrives exactly because it isn’t controlled by the government.
- One company notes that the higher tax bill would threaten $5 billion in annual spending on capital and research and development
- Republican tax reform led to record R&D investment, 25 percent higher than in the years prior to enactment.
- Republicans want to do more, by doubling the R&D tax credit and expanding innovation and good-paying jobs in America.
- Instead of repealing key pieces of the Republican R&D boom, Biden should work with Republicans to improve our low #24 ranking on global R&D incentives.