Startup Act 2.0 Legislation Will Help Create JobsBy: Shawn Hess - May 22, 2012
The government is at least trying to do something about the abysmal job situation in the United States. In December US Senator Mark R. Warner introduced the Startups Act to help facilitate job creation and it received backing from many other member of the House. Today he introduces the Startups Act 2.0 to pick up where the first bill fell short.
Startups 2.0 aims to create an environment ripe for entrepreneurial efforts and innovative business ideas. Targeted at a tax code which will make job creation more likely, the bill would also ease regulatory requirements that make it harder for small business to expand.
Here’s a list of provisions from Startups Act 2.0:
* Creates a new STEM visa so that U.S.-educated foreign students, who graduate with a master’s or Ph.D. in science, technology, engineering or mathematics, can receive a green card and stay in this country where their talent and ideas can fuel growth and create American jobs. It also creates an Entrepreneur’s Visa for legal immigrants so they can remain in the United States, launch businesses and create jobs, and eliminates the per-country caps for employment-based immigrant visas, which hinders U.S. employers from recruiting the top-tier talent they need to grow.
* Makes permanent the exemption of capital gains taxes on the sale of startup stock held for at least five years, so investors can provide financial stability at a critical juncture of firm growth. It also would create a targeted research and development tax credit for young startups less than five years old and with less than $5 million in annual receipts. This R&D credit is designed to allow startups to offset employee taxes, freeing up resources to help these young companies expand and create jobs.
* Uses existing federal R&D funding to better support university initiatives designed to bring cutting-edge R&D to the marketplace more quickly, where it can propel economic growth.
Requires government agencies to conduct a cost-benefit analysis of proposed “major rules” with an economic impact of $100 million or more. This new requirement will help determine the potential impact of proposed regulations on the formation and growth of new businesses.
* And Startup Act 2.0 directs the U.S. Department of Commerce to assess state and local policies that aid in the development of new businesses. Through the publication of reports highlighting these “best practices” from across the country, policymakers will be better equipped to encourage entrepreneurship by adopting the most effective and successful policies.
Senator Mark R. Warner comments on the new Startups Act:
“Startup 2.0 offers smart, commonsense steps to support and encourage America’s innovators and entrepreneurs,”
“Working together, we have crafted a bipartisan proposals that will help us compete and win the global contest for talent. We also propose responsible steps that will help our colleges and universities move taxpayer-funded R&D out of the lab and into the marketplace. Startup 2.0 is the logical ‘next step’ following enactment of the bipartisan JOBS Act earlier this year.”
Senators Jerry Moran, Marco Rubio, and Chris Coons joined Warner in introducing the Startups 2.0 Act. Many of the provisions from the bill are supported by President Obama’s jobs and competitiveness council, who was represented at the event by Steve Case of AOL fame.
Steve Case comments:
“The passage of the JOBS Act demonstrated that despite a tough political climate, Democrats and Republicans can come together around policies that will help entrepreneurs innovate and create jobs,”
“Startup Act 2.0 builds on that momentum and its passage will help solidify America’s position as the world’s most entrepreneurial nation. I am particularly pleased the bill includes a provision that will enable highly-skilled engineers and entrepreneurs to start companies in the United States, as winning the global battle for talent is essential if we are going to keep our entrepreneurial economy moving forward. I commend Senators Moran, Warner, Rubio and Coons for their leadership and their willingness to come together in a bipartisan manner to focus on what unites us: a desire to create jobs, accelerate economic growth, and ensure our nation remains competitive globally.”
To learn more about the Startups Act 2.0 follow the link to Fairfax News and their coverage of the conference where it was unveiled.