Research & Development

President Obama is scheduled today to unveil a new economic package, part of which will be to make permanent the Research & Development Tax Credit that expired at the end of last year. This tax credit was instituted in President Reagan’s Economic Recovery Tax Act of 1981, has expired 8 times, and been extended 13 times, most recently in 2008 by President Bush.

The tax credit, a one-for-one write down of qualified R & D expenses, is hailed by businesses as an incentive for companies to create jobs in the U.S. and remain competitive in the global economy. So much so that Tech America runs an ongoing calculator on its’ website that shows how much the lapsed tax credit is costing our economy in lost jobs and revenue. The numbers are simply astounding.

We know where Jeff Barnett stands on the issue of R & D and job creation. He believes that the key to creating jobs in this economy is working with “technological innovators”,  just the sort of entities that can benefit from a R & D tax credit.

We also know how our current incumbent congressman stands with regard to R & D.  Oh, he talks big on his House website about it:

I have been a longtime champion of job creation through export promotion, domestic manufacturing, and high-tech research and development. Ninety-five percent of the world’s customers live outside the U.S.  These markets provide an opportunity to grow American businesses and create American jobs.

Unfortunately, his actions speak louder than his words. When the R & D tax credit came up for reauthorization in 2008 (HR 6049), our 10th District representative voted AGAINST reauthorization.

Republicans have generally been behind the R & D tax credit since its introduction in 1981, as have Democrats. It’s a common sense method to spur innovation, keep businesses competitive in a global economy, and create jobs, since many of the labor costs can be recouped through the credit. But judging by the reactions of the “Party of NO”, it seems like they will be in lock-step opposition to the reauthorization and/or permanence of the credit. Because Republicans in Congress and the Senate, along with our do-nothing and hypocritical representative, are all about playing politics right now, now in helping the economy.

Jeff Barnett is below petty politics. He truly desires to keep the country moving forward by investing in the people and companies that are the lifeblood of the economy.