The United States has spent the last decade-plus destroying most of the reasons to create Intellectual Property (IP) in the United States.
This is more than a mite problematic — given we are in the nascent stages of what will increasingly be an Information Economy. Where more and more of what we do will be digital and thus require more and more IP.
The US has three branches of government. All three have been actively attacking IP and its creators.
“Say you spend thousands of hours and billions of dollars designing and developing some software.
“And then Google parachutes in and steals it from you.
“And then the Supreme Court authorizes Google’s theft.
“How likely are you to ever again spend thousands of hours and billions of dollars designing and developing software?
“You absolutely will not. Because human nature.”
You know who has been paying very close attention to our IP stupidity? Communist China.
So things are looking great going forward.
And now the Joe Biden Administration has its sights set on ending one of the last reasons to domestically create IP. Behold the tax incentive known as the Foreign Derived Intangible Income (FDII):
“Foreign Derived Intangible Income (FDII) is a special category of earnings that come from the sale of products related to intellectual property (IP). If a U.S. company holds IP in the U.S., such as patents or trademarks, and has sales to foreign customers based on that IP, the profits from those sales face a lower tax rate.
“How does FDII work?
“FDII is income from the use of intellectual property, a company’s legally protected, non-physical assets, in the United States in creating an export. FDII is provided a special lower tax rate of 13.125 percent.
“FDII was adopted when
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