American innovation is dying — and Congress is the culprit



The United States once led the world in manufacturing, producing more than 25% of global industrial output. Today, China holds that title, controlling over 30%, while the U.S. struggles to maintain even half that share.

Plenty of factors drove this decline — decades of offshoring, the collapse of industrial job bases, and an obsession with short-term profits over long-term strength. But if America wants to reclaim its industrial leadership and restore economic self-reliance, we need more than reshoring slogans and infrastructure bills.

Innovation isn’t an expense. It’s an investment — in national security, in American workers, and the future of US leadership.

We must fix and expand the research and development tax credit.

A recent Wall Street Journal analysis focused on our loss of industrial capacity. But capacity starts with innovation. Every new factory, process, and product begins with research — and that remains our greatest untapped advantage.

Yet Congress has punished companies for investing in R&D. Since 2022, the tax code has forced businesses to amortize R&D expenses over five years instead of deducting them immediately. That change has choked innovation, especially among small and midsized manufacturers that depend on near-term tax relief to fund future growth.

The result? Reduced domestic innovation, fewer advanced manufacturing breakthroughs, and an economy less equipped to compete with subsidized foreign rivals.

R&D incentives work

The research and development tax credit was meant to drive economic growth. It helps businesses offset the steep costs of developing new technologies, improving production, and staying competitive.

But today’s credit falls short. It’s too small, too complicated, and — after the amortization change — actively harmful.

Now compare that to China. Beijing offers “super deductions,” direct subsidies, and aggressive industrial policies tailored to national priorities. The results speak for themselves: China leads in semiconductors, solar, electric vehicles, and other strategic industries.

Four immediate fixes

To reverse course and restore American competitiveness, Congress must act.

  • Restore full expensing of R&D investments so businesses can deduct costs in the year they’re made — not years later.
  • Expand the R&D credit to reach startups, family-owned manufacturers, and small tech firms that often drive innovation but struggle to access support.
  • Streamline eligibility rules and reduce audit risks that discourage many companies from claiming the credit at all.
  • Create bonus credits for R&D tied to domestic manufacturing in key sectors like semiconductors, energy, defense, and infrastructure.

R&D as economic infrastructure

American manufacturing won’t come back without innovation. You can’t revive the auto industry, reshore chip production, or scale clean energy without continuous investment in research and development. And without smart tax policy to back it, capital won’t go where it’s needed.

Lawmakers in both parties love to talk about supporting U.S. industry. But support doesn’t come from speeches — it comes from policy. If Congress is serious about restoring American manufacturing, it should start by fixing the one tax tool designed to keep us competitive.

The auto industry didn’t boom just because someone built a car. It took Ford’s innovation of the assembly line and the machines to make it work. Thomas Edison didn’t invent the light bulb — he made it viable. Steve Wozniak didn’t invent the microchip, but he made the personal computer scalable.

Inventors didn’t build the modern economy. Innovators did.

Innovation isn’t an expense. It’s an investment — in national security, in American workers, and in the future of U.S. leadership.

Want a recession? Kill this business deduction and wait



When President Donald Trump returned to office in January, nearly everyone in his circle agreed on the top priority: renewing the 2017 Tax Cuts and Jobs Act. Without action, a crushing 22% tax hike looms, threatening to undo the economic gains of the past decade.

Extending the tax reform would also give businesses and investors the long-term stability they need to plan, expand, and hire.

Repealing the C-SALT deduction would hammer small businesses — the backbone of the American economy.

Instead, the administration has sent mixed signals. Daily shifts in tariff policy have rattled markets and injected uncertainty into every sector of the economy. Investors are jittery. Business leaders are holding back. And analysts are already warning of a potential recession.

These mistakes make it even more important to switch the focus to the tax package. The Trump administration should stop talking about tariffs and focus, along with Congress, on stabilizing markets and laying the foundation for economic growth by getting taxes down.

C-SALT: A conservative’s dream

The Tax Cuts and Jobs Act delivered everything conservatives had long demanded: 100% expensing for business property, a 21% corporate income tax rate, and a child tax credit that rewarded work. It stood as the defining achievement of Trump’s first term. Making it permanent could help revive the pre-COVID economic boom.

But lawmakers must resist the temptation to gut the law’s pro-growth provisions to fund unrelated priorities. That includes rejecting the misguided push to repeal or limit the corporate state and local tax deduction, known as C-SALT.

Debates about the individual SALT deduction cap have dominated headlines in Washington. Some reforms to that cap may make sense. But individual SALT and C-SALT are not the same issue, and they shouldn’t be treated as interchangeable.

C-SALT promotes growth by preventing double taxation on businesses. It lets employers reinvest earnings, stay competitive, and create jobs. Rolling it back would hit business owners hard, slow hiring, and weaken America’s edge in the global economy.

Policy groups like Americans for Tax Reform and the Tax Foundation agree: Gutting C-SALT would put long-term growth at risk — and betray the core economic agenda that fueled Trump’s first-term success.

For businesses, state and local taxes are an operating expense. If businesses lose the ability to deduct these taxes, they will be paying taxes on taxes.

Small businesses pay the price

Repealing the C-SALT deduction would hammer small businesses — the backbone of the American economy. Many already struggle under heavy corporate, state, and local tax burdens, especially in rural and Republican-leaning states. Removing this deduction would force them to shoulder a disproportionate share of the pain.

No serious conservative case exists for eliminating or capping the C-SALT deduction. Some Republicans seem confused, conflating C-SALT with the personal SALT deduction, which overwhelmingly benefits wealthy taxpayers in high-tax blue states. But they are not the same. As the Tax Foundation notes, capping C-SALT won’t “reduce distortive tax benefits or enhance state competition” the way a cap on the personal SALT deduction might — because corporate and individual tax systems function differently.

In 2023, American businesses paid nearly $1.1 trillion in state and local taxes. Stripping away their ability to deduct those taxes from federal corporate income tax amounts to a massive tax hike — potentially hundreds of billions of dollars over the next decade.

That kind of tax increase would erase much of the economic progress since the 2017 tax law was passed. It would punish the very job creators conservatives claim to champion.

Lawmakers in Congress — especially Republicans who support free enterprise and pro-growth tax reform that spurs economic growth — should focus on restoring and making permanent the 2017 Tax Cuts and Jobs Act’s tax cuts without jeopardizing the benefits that the C-SALT deduction provides for American businesses of all sizes.

Home solar isn’t woke — it’s conservative common sense



Four Republican senators have taken an unexpected but welcome stand for American energy independence. They sent a letter to Majority Leader John Thune (R-S.D.) urging him to protect the investment tax credit, a key program that helps American families install rooftop solar panels and battery storage systems. They join 21 House Republicans who signed a similar letter defending energy freedom for U.S. homeowners.

As a lifelong conservative, I’m glad to see it. The ITC isn’t a government handout. It’s a tax credit that helps homeowners cover the up-front cost of installing solar panels and battery backups. It empowers Americans to generate their own power, lower their energy bills, and reduce reliance on bloated utilities. Since its creation nearly two decades ago, every president — Democrat and Republican, including Donald Trump — has supported it.

The investment tax credit puts power — literally and figuratively — back in the hands of individuals while reducing America’s dependence on foreign energy.

But some in Congress want to kill the ITC. That would be a costly mistake, especially as tariffs and other pressures push prices higher. Eliminating the ITC would put rooftop solar and home batteries out of reach for most families.

Without these tools, more Americans will remain tied to an aging, overburdened electric grid — just as demand surges and threats like wildfires, blackouts, and cyberattacks multiply. It would also expose families to the unchecked rate hikes of monopoly utilities and weaken a policy that has fueled job growth in red states like Texas and Florida, where home solar is booming.

The conservative case for the ITC is straightforward. Conservatives believe the tax code should reward behavior that strengthens the country — buying a home, raising a family, investing in a small business. Generating your own electricity during a grid failure should be no different.

During blackouts in Texas, wildfires in California, and hurricanes in Florida, families with solar and batteries kept the lights on when it mattered most. They didn’t wait on utility companies or FEMA. They had peace of mind because they had power.

And as we saw after Hurricane Milton, it’s often conservative, Trump-voting communities that land last on the disaster recovery list.

Monopoly utilities, backed by state regulators, have no incentive to treat customers fairly. At best, they see us as ATM machines. Last year, Pacific Gas and Electric hiked rates, tacked on new fees, and raked in $2.2 billion in profits. Millions of Californians have no choice but to pay up — unless they generate their own power.

Backing the ITC isn’t a betrayal of conservative values. It’s a reaffirmation of them. It puts power — literally and figuratively — back in the hands of individuals while reducing America’s dependence on foreign energy.

I applaud the Republicans in Congress who have taken a stand for the ITC. More should join them. Because defending the ITC isn’t just good policy.

It’s good for America.

Billions for noncitizens: Blue city leaders DESTROYED for shelling out taxpayer funds to illegal aliens



While Americans are struggling to pay taxes and bills, non-Americans living in America are living large.

This was made clear during a recent House Oversight Committee hearing when Rep. Virginia Foxx (R-N.C.) questioned mayors from “blue cities” like New York, Chicago, Boston, and Denver regarding the insane costs their sanctuary policies impose on taxpayers.

Foxx put Mayor Johnson of Chicago on the spot, asking him how much the city has spent on care for illegal aliens in the past four years.

“Thank you for that question, Congresswoman,” Johnson replied sheepishly. “Since 2022, since the governor of Texas began shipping —” he continued, before Foxx harshly interrupted.


“Just tell me a number. I don’t need a speech. Just tell me a number,” she replied.

Johnson went on to repeat his story before saying it cost roughly 1% of the city's budget over the course of the last four years.

Mayor Johnston of Denver did not attempt the same excuse as Johnson and got right to the point when asked.

“It’s $79 million over the last two and a half years,” he said.

Mayor Eric Adams of New York also gave an honest answer, telling Foxx that taxpayers spent $6.9 billion on illegal immigrants.

“Taxpayers have been bearing the brunt of the massive wave of illegal aliens who’ve entered the United States. The Biden administration seemingly declared taxpayers and hardworking Americans collateral damage in the pursuit of open borders,” Foxx said, before grilling Mayor Johnson on whether or not NGOs are providing services to illegal aliens in his city.

“We do not seek the status of any individual that is seeking service,” Johnson replied, which the rest of the mayors agreed to doing as well.

“That’s your problem, right there. When they’re here illegally, they’re not residents of your city, your state, or this nation,” Pat Gray of “Pat Gray Unleashed” says, infuriated.

“If I just go to Mexico City and I just live there, I’m not a resident of Mexico City. I’m an illegal alien in Mexico, and I deserve whatever punishment that comes from that. I deserve to be deported; I deserve to be taken into custody,” he continues.

“I don’t get it. Why are we expected to just welcome people, no matter what happened, no matter the illegality involved in them being here?” he adds.

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Entrepreneurs need certainty, not higher taxes, to succeed



As lawmakers return to Washington, D.C., after a long and hard-fought election season, they will begin to set priorities for the upcoming session. The economy and inflation remain the top concerns for Americans and small businesses. We need to make sure we embrace policies that help them thrive. Extending the 2017 tax law is a crucial step toward providing small businesses with the security they need.

The 2017 tax law transformed the small business landscape, enabling owners to reinvest more earnings into their operations. This spurred job creation, investments in new equipment, and the launch of new ventures. By lowering the tax burden on small businesses, the law fueled historic wage growth and brought unemployment to record lows.

Lawmakers can either increase uncertainty by raising taxes or negotiate in good faith to build on the 2017 reforms.

Policymakers should always aim to support economic growth and stability. The road map Congress laid out six years ago remains clear. Neither Congress nor the next president should undo those reforms so soon, especially while high inflation and interest rates strain entrepreneurs. Lawmakers must assess potential outcomes carefully. If there is no agreement on lowering rates, why not maintain the current tax levels instead?

During my time at the U.S. Small Business Administration’s Office of Entrepreneurial Development, we helped thousands of entrepreneurs nationwide start and grow their businesses. Washington’s economic policies played a crucial role in our success. Today, I worry that lawmakers are too eager to raise taxes on small businesses instead of exploring ways to help entrepreneurs invest more in their employees.

The Tax Foundation’s latest research shows that avoiding corporate tax increases could boost U.S. economic output by 1.7%, wages by 1.5%, and employment by 381,000 full-time jobs. These gains would come at about half the cost of the Inflation Reduction Act’s green energy tax credits and the CHIPS and Science Act’s tax credits, grants, and spending programs.

I understand where our new incumbents and candidates in Congress are coming from. Most were not involved in negotiating the 2017 law, and many believe that reshaping America’s tax code will fight inequality for generations. The reality, however, is that the taxes Washington is considering raising will likely harm the middle class the most. A narrow-minded “higher taxes” approach won’t solve America’s spending issues or help us compete in the global economy of the future.

As the next Congress debates whether to maintain or raise the corporate tax rate, we face a critical decision. Lawmakers can either increase uncertainty by raising taxes or negotiate in good faith to build on the 2017 reforms. Allowing entrepreneurs to reinvest in their workforce will benefit the economy far more than higher taxes.

Politicians must remember that voters have a real choice in deciding who should pay taxes and how much. By reviewing data from the past six years, lawmakers should recognize the success of the 2017 tax policies. Maintaining the current tax rate and extending key provisions would deliver the greatest long-term benefits to the economy and the middle class.

Trump Team Plans To Axe Biden's EV Tax Credit: Report

President-elect Donald Trump's transition team is preparing to eliminate the Biden administration’s $7,500 electric vehicle tax credit as part of its broader tax reform plans, Reuters reported Thursday.

The post Trump Team Plans To Axe Biden's EV Tax Credit: Report appeared first on .

House Passes Child Tax Credit Expansion Bill Over Freedom Caucus Opposition

The bill would also raise the limit on the credit per child to $1,800

Rubio bill would stop 'woke corporations' from getting tax breaks for paying for abortions



U.S. Sen. Marco Rubio (R-Fla.) says that by paying for employees' abortions and financing so-called "gender-affirming care" for their children, "corporate elites have gone full crazy." In response, he's filed legislation that he says will prevent taxpayers from subsidizing "corporate activism."

Rubio introduced the "No Tax Breaks for Radical Corporate Activism Act" on Tuesday, a bill that would prohibit employers from deducting expenses related to paying travel costs for employees who want an abortion, medical costs for employees seeking cross-sex hormones, or puberty-blockers for their children. The bill comes in response to several major companies that have announced new employee abortion benefits in recent weeks, including Amazon, Yelp, Citigroup, and others.

Federal tax law permits businesses to deduct certain expenses that are considered "ordinary and necessary" for operating, including employee health care plans, some medical expenses, and other related benefits. Rubio's bill would "deny the trade or business expense deduction for the reimbursement of employee costs of child gender transition procedure or travel to obtain an abortion."

“Our tax code should be pro-family and promote a culture of life. Instead, too often our corporations find loopholes to subsidize the murder of unborn babies or horrific 'medical' treatments on kids," Rubio said in a statement. "My bill would make sure this does not happen."

In anticipation that the U.S. Supreme Court will overturn its 1973 Roe v. Wade decision — a landmark legal precedent that established a constitutional right to an abortion — pro-life lawmakers in several states have advanced laws banning or restricting abortions. If Roe is overturned, as a leaked Supreme Court majority opinion suggests it will be, 26 states have so-called trigger laws or unenforced laws on the books that would ban or severely restrict abortion access.

Several major corporations have responded by committing to pay for pregnant employees in those states to travel out of state if they want to kill their unwanted child. Amazon, the second largest private employer in the U.S., on Monday became the latest company to do so, offering to pay up to $4,000 annually in travel expenses for any pregnant employee who travels more than 100 miles for an abortion.

In an op-ed for Newsweek, Rubio criticized these companies for supporting "abortion tourism," as well as Disney for offering to pay for gender transition "care" for children of its employees.

"While the radical Left drives this insanity, the law enables it,' Rubio wrote. "The current U.S. tax code allows employers to deduct employee compensation and benefits. Because a lot can fall under that umbrella, the code also specifies certain expenses that don't qualify for tax breaks. But there is no provision that prohibits Citigroup and others from deducting abortion and gender transition costs. As a result, these corporations may be able to help their employees kill their unborn children or transition their son into a daughter tax-free!

"This has to change. Businesses should not receive tax breaks for radical leftist activism, especially when that activism jeopardizes our children. Our tax code should encourage family formation and promote a culture of life. Instead, it too often encourages subsidies for the murder of unborn babies and the performance of horrific 'medical' treatments on kids," he said.

SCREW THE IRS: We're Being Held Hostage with Our Own MONEY! | Ep 483
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SCREW THE IRS: We're Being Held Hostage with Our Own MONEY! | Ep 483

SCOTUS rejects attempt by blue states to get tax cuts for the rich



The U.S. Supreme Court on Monday rejected an attempt by Democratic-led states to get a massive tax cut for the rich.

The court has declined to review a challenge brought by New York, Connecticut, New Jersey, and Maryland to the $10,000 federal cap on state and local property and income tax deductions, also known as the SALT cap.

In the 2017 tax reform law signed by former President Donald Trump, Congress imposed a limit on how much in state and local tax payments individuals could deduct from their federal income tax payments. The measure was included as a revenue cost offset to income and corporate tax cuts included in the law, needed to meet a House budget reconciliation requirement that no more than $1.5 trillion would be added to the federal deficit over a 10-year budget period.

Ironically, while congressional Democrats attacked the whole tax reform law as a massive tax break for the wealthy, Democratic-run states were particularly opposed to the SALT cap because it increased the federal tax burden of their wealthiest residents. New York and the other states sued, arguing that Congress had violated the Constitution by interfering with the states' ability to levy taxes.

"Congress’s taxing authority (as set forth in Article I, Section 8 and the Sixteenth Amendment) is cabined by the structural requirements of federalism, which prevent the federal government from directly interfering with the States’ ability to generate revenue to sustain their operations," the states argued in a March court filing. "The long history of federal income taxation demonstrates that Congress and the States equally understood that a deduction for all or nearly all state and local property and income taxes was constitutionally required to preserve state sovereign taxing authority."

The Supreme Court on Monday rejected this argument and declined to hear the lawsuit without issuing an explanation.

Congressional Democrats tried and failed to repeal the SALT deduction cap in 2019, and the party has been divided on this issue during negotiations over a budget reconciliation package for President Joe Biden's $1.75 trillion Build Back Better economic agenda.

House Democrats in 2021 passed a bill that would raise the SALT deduction cap to $80,000 through 2031, when it would return to $10,000. But Republicans are opposed to changing the tax law, and the bill has not advanced in the United States Senate. Some progressive Democrats are also opposed to eliminating the SALT cap, acknowledging that more than 90% of the benefit would go to the top 20% of earners, according to the Tax Policy Center.

Rep. Alexandria Ocasio-Cortez (D-N.Y.) tweeted in September that "a full 100% SALT repeal means major tax breaks for extremely high-net worth individuals and billionaires. Why do that?"

I am open to taking a look at SALT and addressing concerns for families put under the squeeze in high cost of living areas.\n\nBut a full 100% SALT repeal means major tax breaks for extremely high-net worth individuals and billionaires. Why do that?
— Alexandria Ocasio-Cortez (@Alexandria Ocasio-Cortez) 1631896426

It is unlikely that Congress will come to an agreement to repeal or limit the SALT cap before the midterm elections in November, when Republicans are widely expected to reclaim a legislative majority and put the issue to rest.

The current SALT deduction cap will expire in 2025.