Tax Policy

Issue Summary

The Silicon Valley Leadership Group has a strong tradition of finding regional, state and federal bi-partisan policy solutions which recognize the innovation economy by bringing California and the U.S. tax codes up to date. Our top priorities are creating level playing fields on business sales and use as well as property tax rates and incentives that are competitive globally and with other states.

For businesses to expand jobs, retain commerce, and continue innovation and economic growth depends on the soundness, stability and predictability of the state’s and locality’s tax policies. California’s tax code is a patchwork of political compromises largely borne out of negative legacies and unintended consequences of previous policies which threaten future economic competitiveness and growth.

California is beginning to take incremental steps toward strengthening our economic competitiveness to help businesses retain and grow facilities and jobs. California should continue to find ways to be fiscally responsible, lower overall tax burdens and proactively address employers’ retention, expansion, and growth needs through appropriate tax-based incentives (without unduly jeopardizing local goods and services).

Protecting the State and Federal R&D Tax Credit

California R&D Tax Credit: The Leadership Group supports strengthening and improving California’s R&D Tax Credit.

U.S. R&D Tax Credit: Each year, the Leadership Group is an active member of broad national coalition to successfully extend and enhance the federal R&D tax credit. Research and development (R&D) is critical as a means for increasing competitiveness and well-being in America. For more information and analysis: National R&D Credit Coalition

Support U.S. Comprehensive Corporate Tax Reform

The Leadership Group supports a lower business tax rate, territorial tax regime system and a permanent federal R&D tax credit.