Tax Breaks Matter to Technology Adoption

There are many instances of tax breaks helping the faster adoption of new technologies or emerging companies to first survivie and ultimatley thrive. Some examples include the no taxes on ecommerce transactions which helped the growth of companies like Amazon even during the bust. Software companies in India pay no corporate taxes on software exports creating a 50% growth for many companies in 2004. The reduction in PC tarriffs in India earlier this year has also accelerated consumptions leading to better PC penetration. The latest tax break on broadband net access by Bush will definitely be a catalyst in broad based adoption. We definitely need some support to software companies that support the local markets because they compete with companies that have dollar earnings. Also breaks for telecom companies to improve internet connectivity because all their investments and mindshare is focussed on mobile customer acquisition and ARPU improvements.

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