Every year on Tax Day, Americans are reminded that tax policy is not just a matter of numbers on a spreadsheet or debates in Washington. Tax policy decides whether a small business can afford to expand, whether a startup can hire its next employee, and whether the United States remains the best place in the world to innovate.
That is why the tax wins secured last year by President Trump and Congress through the budget reconciliation process matter so much. In the year since passage, sensible tax policy has allowed American technology companies of all sizes to lead in American investment, pouring billions into American infrastructure and American workers. For example, Apple announced it will spend more than $500 billion in the U.S. over four years, including a 250,000-square-foot server manufacturing facility in Houston that will create thousands of jobs. Google announced an additional $9 billion in Virginia for cloud and AI infrastructure through 2026. Amazon announced plans to invest at least $20 billion in Pennsylvania for AI and cloud infrastructure, a move that will create 1,250 new high-skilled jobs and support thousands more in the supply chain and construction industry.
When businesses can fully deduct their expenses in the year they occur, they are better able to invest in growth. That can mean purchasing new software, expanding operations, upgrading equipment, or bringing on new employees. For a startup or a small business, that kind of certainty can make the difference between delaying a decision and moving forward.
When policymakers strengthen incentives for research and development, they are not just helping invent the next breakthrough technology. They are helping create the kinds of jobs and industries that keep America competitive and open new doors for workers and communities across the country. Innovation does not happen in a vacuum. It happens because businesses have the confidence to invest in new ideas, new products, and new solutions.
When tax policy supports advanced manufacturing in the United States, it means more production, more investment, and stronger supply chains here at home. That matters not just for America’s economic strength, but for workers and communities who benefit when high-value industries grow domestically instead of moving elsewhere.
And when Congress reduces outdated and inefficient tax reporting requirements, it gives businesses, especially smaller and growing ones, more time to focus on serving customers, creating jobs, and building for the future instead of navigating unnecessary paperwork. According to the IRS, the typical small business spends about 82 hours and $2,900 a year on tax compliance. [IRS Taxpayer Advocate Service, Annual Report to Congress 2022] That’s time and money that could be used to grow the company.
At a time when America faces increasing global competition, the stakes could not be higher. Other countries are working aggressively to attract investment, talent, and innovation. The United States cannot afford to move backward with a tax system that makes it harder to build, invent, and grow here.
That is why maintaining a competitive corporate tax system remains so important. A stable, globally competitive tax rate helps encourage companies to invest in America. Policies that support immediate expensing, private-sector R&D, advanced manufacturing, and entrepreneurship do more than strengthen businesses — they strengthen the broader economy and the communities that depend on it.
This matters to Americans across the country just as much as it matters to Silicon Valley or Wall Street. The local supplier, the family-owned firm using new digital tools to reach customers, the startup trying to bring a new product to market, and the manufacturer deciding where to expand, all benefit when the tax code rewards investment and innovation instead of discouraging it.
Tax policy should also reflect the realities of a global economy. The United States should preserve international tax rules that encourage companies to continue investing and innovating here at home, while pushing back against discriminatory foreign taxes that unfairly target American technology companies. Protecting the United States’ ability to compete globally is part of protecting American jobs and growth locally.
This Tax Day, lawmakers should reflect on what was achieved last year and remember that these policies have real consequences for everyday Americans — shaping jobs, investment, and opportunity in communities across the country — while remaining vigilant and thoughtful about the work still ahead.
Americans deserve a tax code that works for the businesses creating jobs, developing new technologies, and strengthening communities across the country with tangible benefits for people. On Tax Day, that is worth remembering — and worth defending.
Mike Ward
TechNet Senior Vice President for Policy and Government Relations
This article was originally published on The Washington Reporter.