An Innovation Box for the U.S.? Congress Should Focus on Business Tax Reform Instead
There is growing talk of Congress creating an “innovation box” instead of focusing on broad business tax reform. This would be a mistake. An innovation box, often called a patent box in Europe, offers lower tax on certain types of income derived from intellectual property, or IP. Such boxes pick winners and losers and are not substitutes for sound policies like a lower business tax rate and a territorial tax system to replace today’s worldwide system. Congress needs to refocus on passing business tax reform to revive economic growth instead.