American creators of “violent” video games beware: Washington D.C. might just take a swipe at you in its upcoming tax reform bill.
According to The Washington Examiner, the U.S. House of Representatives’ Ways and Means Committee’s “long-awaited” bill reforming the American tax codes singles out the creators of violent video games, refusing them a proposed research and development tax break.
“On page 19 of the executive summary,” the newspaper reports, “the committee mentions an improved and permanent research and development tax credit, which has benefitted countless industries from manufacturers to software creators to food producers.” As such, the bill proposes a so-called “improved, permanent R&D tax credit” in order for American companies “to compete against their foreign competition who have long had permanent R&D incentives.”
But as the newspaper states, page 24 of the bill “removes that tax credit from the violent video game industry, under a section about closing loopholes… One of the plan’s provisions: ‘Preventing makers of violent video games from qualifying for the R&D tax credit.’”
The Washington Examiner notes the incredible irony of this statement, “given the fact that on the very next page the summary says the bill ‘stops the practice of using the tax code to pick winners and losers based on political power rather than economic merit.’”
Interestingly, the Examiner concludes that the bill “would affect companies like Electronic Arts, which makes violent games like ‘Battlefield’ but also non-violent games like ‘FIFA Soccer’ and ‘The Sims.’” Therefore, companies associated with the development or publishing of violent games – even if some or most of their wares aren’t considered violent – would lose out on the tax credit completely.
The Republican party – in the majority of the House of Representatives – controls the Ways and Means Committee, and is typically known as an anti-tax, small government party. How this particular provision stays in line with the party’s overall viewpoint remains to be seen.
http://www.ign.com/articles/2014/02/...enta-game-devs