Fair Tax Policies With Incentives For Innovation

Taxes should be simple, fair, and growth-oriented. But today’s tax code is anything but. Recent changes have increased the burden on small businesses—especially those driving innovation.

Larger corporations can absorb tax hikes more easily, small firms cannot.

Even a 7% increase in operational costs can be devastating for a small business.

R&D Limitations Are Driving Innovation Abroad

The Tax Cuts and Jobs Act (TCJA) took away the ability for businesses to fully deduct research and development (R&D) costs. That means some small businesses saw a 400% increase in tax liability—practically overnight.
Innovation Is Being Penalized

Instead of encouraging bold ideas and breakthrough technologies, the current tax structure penalizes companies for investing in them—especially small firms, which are often the most agile and inventive.
We must restore R&D tax incentives to keep America competitive.
Why Innovation Matters for America’s Future

Innovation is the engine of economic prosperity. If we continue to discourage it, we risk falling behind—economically and strategically.
Currently, China leads in annual patent filings, surpassing the combined totals of the U.S., Japan, South Korea, Germany, France, India, and the UK.
Businesses Feel Every Percentage

Large corporations can weather tax hikes with vast resources and legal teams. But for small businesses, even a 7% increase in costs can be the difference between growth and closure.

This imbalance slows business development and stifles long-term tax revenue

USHBC Policy Priorities, incentivize innovation

What We Need

We need policies that incentivize businesses to invest in new ideas, technologies and methods, not penalize them for doing so. This is especially important for small businesses, which are often the most innovative and dynamic part of our economy.

Incentivize Innovation. Empower Small Business.