Trump’s Patent Tax Proposal
The administration is weighing a 1–5% tax on overall patent value to raise revenue for the federal deficit.
Opposition
Over 30 conservative groups (e.g., Americans for Tax Reform, National Taxpayers Union) strongly oppose the plan, calling it “counterproductive in the extreme.”
Key Concerns
Tax Cuts Undone: Would offset Trump’s earlier tax reductions.
Competitiveness: Could drive away investment and weaken U.S. innovation leadership.
Valuation Issues: Difficult to measure patent value—likened to a wealth tax.
Constitutional Questions: Only Congress, not Commerce, can levy taxes.
Innovation Risks: Fields like AI, medicine, semiconductors, and energy could be harmed.
Big Picture
Critics frame it as a “tax on American innovation” that would stifle R&D, weaken property rights, and threaten national security competitiveness.
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