HR 5893, otherwise known as the Startup Act 2.0,
offers significant impact to the US economy with a couple minor changes to our
immigration policies and tax codes. The Startup Act 2.0 puts forth simple concepts
of raising the cap on visas available to those who come here to get an
education but then return to their home countries, additionally offering
extensions to the amount of time they can stay in the US. The Act also offers
some tax incentives for investing in “startup” companies in the form of
reductions in capital gains tax and tax credits for certain investments.
Coupling the immigration policy modifications with changes
to the tax code on capital investments in “startups” should ignite an influx of
two of the major components to a vibrant economy – abundance of capital and a
pool of talented people. If you analyze the requirements for any vibrant
economy you need an abundant source of capital, a sea of creative ideas and a
pool of talented people. One of the greatest things our Country has typically
offered is a structure that allows for these free market principles to function
efficiently.
The globalization of the US economy has impacted many
industries from manufacturing to high tech. Wage advantages over the last 30
years helped prompt the trend in outsourcing to various countries around the
world. While there is a general macroeconomic leveling of the playing field
relative to wages going on around the globe, the US continues to fight to bring
jobs back to our shores. Startup Act 2.0 helps to accomplish that and bring
economic vibrancy to the US economy.
There is certainly disagreement over the
jobs going to individuals of foreign origin instead of existing US citizens.
But the specifics of immigration policy in Startup Act 2.0 focuses on STEM
jobs, otherwise known as science, technology, engineering and math. There is a
distinct and reported
shortage of available talent for those jobs in the US, even during this
economic downturn. While there is great debate within the education policy
ranks about the US’s inadequacy in properly training our US citizens for STEM
jobs, the fact is there is a current void. This bill will create jobs and keep
foreign citizens educated in the US here longer to contribute to our society
and economy.
Any bill that can add jobs and provide capital investment
incentives to create those jobs is a net positive for the United States and
should be quickly routed through Congress and put on President Obama’s desk for
signature.
