ITIF on tax reform: Simpler doesn't always mean better

Policymakers’ push to make the tax code simpler and stop the government from picking winners and losers is the wrong approach to corporate tax reform, a new paper from the technology sector argues. The Information Technology and Innovation Foundation (ITIF) study contends that the U.S. tax code should promote what it sees as more deserving investments in areas like research and development.

The analysis argues that insisting on a revenue-neutral overhaul of the corporate tax code could limit economic and job growth. “In a world of intense international economic competition and a U.S. economy increasingly powered by innovation, a tax code that does not proactively ‘distort’ the investment decisions of enterprises in the United States is one that is doomed to leave the United States behind in international competition,” the paper argues.