You are here
AdvaMed Accel Statement on House Ways & Means Tax Reform Hearing
WASHINGTON, DC – AdvaMed Accel released the following statement from Executive Director Ashley Wittorf on today’s hearing in the House Ways & Means Tax Policy Subcommittee on tax reform and small business growth:
“AdvaMed and AdvaMed Accel commend the House Ways and Means Committee for its leadership on efforts to reform the corporate tax code and its specific focus today on supporting small business growth through tax reform.
“Acknowledging the importance of small businesses to economic growth and job creation in the United States is vital as policymakers evaluate ideas to revamp our nation’s tax system. We would also urge the Committee, as it continues its work, to specifically look at ways to better incentivize capital formation and investment in small and start-up businesses – especially in the field of high-tech manufacturing – to revitalize and sustain the comparative advantage for business growth in the U.S. that exists today.
“The lack of capital investment incentives for start-ups has resulted in a flight of innovation from the U.S. to foreign jurisdictions in which government policy is more supportive of new ventures. Unfortunately, as these new ventures seek capital overseas, they are likely to remain overseas when they take off and become profit-making employers. Small businesses and innovators are the engines of economic growth in the U.S., and it is imperative that the U.S. establish a policy that encourages private investment in start-ups in order to keep them at home.
“Tax reform, including lowering the basic corporate tax rate, is critical to America’s long-term growth and competitiveness, in part because it will facilitate capital formation. But pre-profitability start-up firms, already suffering from difficulties in achieving robust investment and capital formation, will not benefit from reductions in tax rates. These firms, especially knowledge-based start-ups, are critical to long-term economic growth, job creation and competitiveness. The striking decline in the number of such firms being created every year is a danger signal that would be a mistake to ignore.
“If tax reform is to achieve its overriding goal of creating a brighter economic future for America, it must include discrete provisions to stimulate additional investment in start-up, pre-profit firms. AdvaMed and AdvaMed Accel have developed a proposal to create a new tax credit for angel investors in high-tech fields.
“We also strongly support other proposals that encourage investment and capital formation in high-technology sectors. These ideas have the potential to better encourage private investment in start-ups in order to keep them at home.”