America's corporate tax system is broken, posing a long-term threat to investment, innovation, and job creation in the United States. The U.S. has the highest corporate tax rate in the developed world – higher than France, Brazil, Venezuela, and dozens of other nations. As a consequence, there are $3 trillion in earnings from U.S. companies locked overseas that otherwise could be invested in the American economy. This makes no sense. Our tax laws should encourage investment here at home.
The National Academies of Sciences, Engineering, and Medicine recently released a giant report on how information technology is influencing the US workforce. I recommend it to anyone interested in job creation, labor-force participation, economic growth, and/or technology. It’s chock-full of interesting findings and ideas for future research.
“Innovation and creative endeavors are indispensable elements that drive economic growth and sustain the competitive edge of the U.S. economy.” Thus reads the start of the executive summary for the 2016 update to the Intellectual Property and the U.S. Economy...
Former Microsoft chief executive officer Steve Ballmer, Seattle design studio Artefact, and a team of academic researchers have launched a website called USAFacts that aggregates 30 years of spending data from more than 70 federal, state, and local government agencies and presents it in easy-to-interpret data visualizations.
President Donald Trump has promised voters his administration's policies will quicken the pace of U.S. growth to three percent a year or more. Even if his administration hits that target for the national economy, some states will likely continue to be left behind. The latest government data Friday shows just how much work the Trump administration faces if it hopes to fulfill its growth target.
The initial federal research investment is small. Eighty percent of the companies in the report cited less than $5 million as the amount of federal funding received for their foundational work. For 40 percent of companies, this amount was less than $1 million. The 102 companies highlighted are predominantly small businesses, like most companies in the United States. Sixty-five percent of companies have fewer than 100 employees. Yet, the companies collectively employ 8,900 people.
A U.S. technology group said in a report on Thursday that China's mercantilist industrial policies were a risk to the global economy and trading system, and called for international pressure on China to force a policy "reset". The report coincided with the release of a separate paper by an influential U.S. business chamber criticizing Beijing's "Made in China 2025" plan, which aims to dramatically increase domestically made products in 10 sectors, from robotics to biopharmaceuticals.
Sens. Shelley Moore Capito (R-W.Va.) and Amy Klobuchar (D-Minn.) are pushing for the federal government to start measuring the impact of broadband on the economy. The two co-chairs of the Senate Broadband Caucus introduced a bill on Wednesday that would require the Bureau of Economic Analysis to study the economic effects of broadband deployment and adoption.
By the early 2020s, rivalry for industrial innovation will accelerate between the U.S. and China. Ironically, the Trump White House has opted for a poor-economy industrial policy, whereas China has a rich-economy policy. The former seeks past glory; the latter cannot wait to get to the future.
A European business group says China is violating its free-trade pledges by pressing foreign makers of electric cars and other goods to hand over technology under an industry development plan that is likely to shrink access to its markets.