Research tax credit a subsidy for big corporations

As a small-business owner, I’ve learned risk is just part of the job. Every investment I make, whether hiring employees, upgrading equipment, or testing new products, is a gamble. But if I make a bad bet, no one sends me a check to cover my losses. That’s how business should work. Unfortunately, Iowa’s Research Activities Tax Credit shields large corporations from this basic principle by shifting their risk onto taxpayers.

This credit allows big companies to claim millions in state-funded refunds, even when they owe no taxes. That means while local businesses like mine face the ups and downs of the market alone, major corporations receive government-backed subsidies just for doing what any business should do — investing in its own success.

Why should taxpayers foot the bill for private business decisions? If research and development are truly worthwhile, the return on investment should be the reward — not a state-funded safety net. Iowa lawmakers should rethink this credit and instead focus on creating a tax system that benefits all businesses equally. That means cutting corporate subsidies and lowering taxes across the board, so success comes from smart decisions, not government handouts.

A thriving economy isn’t built on special deals for the biggest players. It’s built on fair competition, where businesses stand on their own.

Laura Steffeck

Marion