The R&D and tech industries have been worried about a possible tax (or taxes) placed on their research and development departments. This is because the tax provision shielding research and development expired in 2013. Fortunately, Congress acted swiftly and extended the R&D tax provision. Studies complied by Northeastern University suggest that the recent developments we’ve seen in the tech world over the past couple of years were fueled by this tax provision.
This case shows how much a series of tax issues can affect a lot of things in our lives. Imagine if tech companies had to cut down their R&D budget for tax reasons; we may not have had the immensely efficient Snapdragon 835 or smaller, faster NAND chip to expand our phones’ internal storage.
Other issues in tax code are actually causing similar negative impacts. You can learn more about them from the Six Issues in Taxation infographic by Northeastern University.
This infographic was created by Northeastern University.