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Downers Grove, IL 60515
The United States Congress passed the Tax Cuts and Jobs Act this week, a package of tax reforms that will overhaul the U.S. tax code for individuals and corporations. Not since 1986 has our tax code undergone such a comprehensive renovation. Consider that in 1986, laptops weighed dozens of pounds, Sergey Brin and Larry Page were still a decade away from launching Google, Mark Zuckerberg was a toddler, and a young Democratic Senator from Tennessee named Al Gore introduced a bill to require the Office of Science and Technology to explore improvements to communications networks for supercomputers. In the IT world, 1986 was the stone age. And that’s why we’re thrilled with this week’s news.
We’ve long advocated for reforms to our tax code to ensure our own IT industry remains globally competitive. The current code is littered with inequities that force our IT industry to compete on an uneven playing field. Our corporate rates are among the highest in the world, companies are penalized for reinvesting profits they earned abroad back into the United States, and entrepreneurs have to navigate confusing depreciation laws, to name just a few items that hamstring our innovators and job creators. In a marketplace in which 95% of the world’s consumers live somewhere other than the United States, our outdated tax code does more to inhibit innovation and growth than foster it.
But this is all set to change on January 1, 2018, when much of the new law goes into effect. The Tax Cuts and Jobs Act would:
The United States IT industry has long been the envy of the world. The enactment of the Tax Cuts and Jobs Act helps to ensure that this remains the case for the foreseeable future. The new law will stimulate innovation, along with job and economic growth. IT jobs are the backbone of the American economy, and we are happy to see policymakers in Washington work hard to level the playing field for these critical occupations. We stand ready to work with policymakers on other issues important to the IT industry.
Read our statement on the Tax Cuts and Jobs Act here.