Today, U.S. Congressman Paul A. Gosar, D.D.S. (AZ-04) issued the following statement after voting in favor of the American Research and Competitiveness Act (H.R.4438), which passed the House with a strong bipartisan vote of 274-131 and which would simplify the research and development tax credit and make it permanent.
For Immediate Release
Date: May 9, 2014
Contact: Russell Solomon
Rep. Gosar Votes to Give Businesses Certainty
Today, U.S. Congressman Paul A. Gosar, D.D.S. (AZ-04) issued the following statement after voting in favor of the American Research and Competitiveness Act (H.R.4438), which passed the House with a strong bipartisan vote of 274-131 and which would simplify the research and development tax credit and make it permanent:
"The United States tax code is broken and overly complex. In 1913, when the tax code was first created, it was 400 pages long. The current tax code now exceeds 70,000 pages and is a bureaucratic nightmare that punishes job creators, stifles economic growth and discourages investment.
"The United States already has the highest corporate tax rate in the world and allowing important pieces of the tax code, like the research and development tax credit, to expire on a regular basis creates further uncertainty. Businesses are left to make long-term plans around short-term laws, which discourages American innovation and prevents small businesses and job creators from hiring new employees and investing in their companies. This bill will finally make the research and development tax credit permanent, giving businesses the certainty they need to expand their operations and create much-needed jobs."
The research and development (R&D) tax credit has been part of the United States' tax code since the 1981 Reagan tax cuts. Congress has renewed the credit 14 times since then. As part of the compromise to avert the fiscal cliff in early 2013, the credit was extended through December 31, 2013, meaning the credit is not currently part of the tax code. H.R.4438 would make the R&D credit retroactive to January 1, 2014 and would also make it permanent, removing the requirement for Congress to renew it every few years. The National Taxpayers Union key voted this legislation and considered a “YES” vote as the pro-taxpayer position, stating, “making permanent the research and development tax credit is an important step toward creating a healthier business climate, providing broad-based relief, and promoting economic growth.”