By Gautham Nagesh - 11/16/10 10:09 PM EST
The CEOs of IBM, Dell, Intel and Motorola are urging Congressional leaders to extend the research and development tax credit before adjourning next week.
The Technology CEO Council, which includes IBM's Samuel Palmisano, Intel's Paul Otellini, Motorola's Greg Brown and Michael Dell among others, will send a letter to the leaders of both parties on Wednesday urging them to extend and expand the expired tax credit before breaking for the holidays.
"As American companies we invest billions in domestic research and development collectively and intend to continue doing so as long as possible," the CEOs write. "But while other nations encourage innovators to hire more research and development staff in their markets, American policy makers effectively discourage such investments through their inaction and inconsistency."
President Obama has also pushed Congress to make the tax credit permanent, but to offset the move he suggested taxing the overseas earnings of U.S. firms. That packaging has drawn fierce criticism from the tech industry, which has vowed to oppose any additional tax on profits earned abroad.
The CEOs argue increasing the credit to 20 percent would create or retain 162,000 additional jobs in the U.S. while creating $90 billion in additional economic output. The industry group TechAmerica estimated on Monday that the expiration of the tax credit has cost 100,000 U.S. jobs to date.