US Vice President Promotes R&D, Proposes Permanent Ban On Internet Access Taxes

by Mike Godfrey, Tax-news.com, Washington

20 April 2001

In his address to high-tech business leaders in Virginia this week, United States Vice President, Dick Cheney, said that the US should make a current ban on Internet access taxes permanent and encourage businesses to support research and development initiatives with more funding. In addition Cheney has also called for an extension of the current moratorium on Internet sales tax which, in addition to the Internet access tax, is set to expire in October, 2001.

Cheney, a former boss of the energy firm Haliburton, said: 'When you've had some experience in the private sector and come from a business background, you realize that the government doesn't create prosperity. All it can do is help create conditions favorable to prosperity.'

He is arguing that the current temporary tax credit encouraging businesses to invest in research should be made permanent. It is set to expire in 2004 and Cheney said that this has led some businesses to limit their research and development funding. 'We believe it's time to end the uncertainty once and for all, and to make the R&D tax credit permanent,' he said.

So far the proposals have been welcomed by Congress. However, Cheney's proposals don't stop there as he has also called for more domestic oil and gas exploration projects and new investments in energy pipelines and power plants. He said the Bush administration aims to boost government research and development spending by 6 per cent.

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