In this report, CBO extends its analysis of the tax burden on income from investments to include investments in intangible assets, whose value is not derived from physical attributes—for example, software, chemical formulas arising from research and development, and literary works.

CBO found that the tax burden on intangible assets is generally lower than the tax burden on tangible assets. In addition, with respect to equity-financed investments by C corporations, the 2017 tax act increases the tax burden on research and development beginning in 2022 but reduces the tax burden on most other types of intangible assets.

Read the report