Startup Act 2.0 Aims to Jumpstart the Economy

May 22, 2012 2:38 pmBy: 
photo

Warner

U.S. Senator Mark R. Warner (D-Va.) and three colleagues today introduced bipartisan legislation, Startup Act 2.0, to help jumpstart the economy through the creation and growth of new businesses and jobs.  It is based upon research showing that for close to three decades, companies less than five years old have created almost all of the net new jobs in America, averaging about three-million new jobs each year.

Joining Warner in introducing the measure were Sens. Jerry Moran (R-Kan.) Marco Rubio (R-Fla.) and Chris Coons (D-Del.)

Startup Act 2.0 seeks to help move university-based research from the laboratory to the marketplace more quickly. It also makes targeted changes to the tax code to encourage investments in younger, smaller startup companies, and the bill also seeks to ease regulatory requirements that could make it more difficult for smaller businesses to expand and create jobs.Startup Act 2.0 also creates new opportunities for American-educated, entrepreneurial immigrants to remain in the U.S., where their talent and ideas can fuel growth and create American jobs.

Startup Act 2.0 builds upon the original Startup Act introduced by Sens. Warner and Moran in December, and it has been strengthened by including widely-supported provisions of S. 1866, the AGREE Act, introduced by Sens. Coons and Rubio in November. Startup Act 2.0 picks up where the JOBS Act left off by doing more to create an environment in which entrepreneurs can succeed.

“Startup 2.0 offers smart, commonsense steps to support and encourage America’s innovators and entrepreneurs,” Sen. Warner said. “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.”

“Our bipartisan economic growth plan sets out to prove the critics wrong: Congress can get something done during an election year by coming together to strengthen the economy and create jobs,” Sen. Moran said. “To get America’s economic engine roaring once again, entrepreneurs – both American and foreign-born – must be free to pursue their ideas, form companies in the United States, and hire employees. Startup Act 2.0 will create jobs for Americans by creating a circumstance in which entrepreneurs can succeed and the United States can win the global battle for talent.”

“When Senator Coons and I introduced the AGREE Act last fall, we hoped it would lead to greater cooperation on job creation policies that already enjoy broad bipartisan support,” Sen. Rubio said. “Teaming up with Senators Moran, Warner and Coons on Startup Act 2.0 is a worthy effort to break through Washington’s gridlock and help entrepreneurs create new jobs through key reforms to our tax, visa and regulatory systems. Startup Act 2.0 is built on ideas that have bipartisan support and could become law tomorrow if Washington stopped playing games and started working for the people.”

“A central tenet of the AGREE Act, which Senator Rubio and I introduced last fall, was that there is not a shortage of good ideas for helping our economy create jobs, but a shortage of political will to come together and advance them,” Sen. Coons said. “Startup Act 2.0 builds on that philosophy, containing an array of smart ideas for supporting our innovative entrepreneurs. I am proud to join Senators Moran, Warner and Rubio in introducing them today, and look forward to working with them to help Startup Act 2.0 become law.”

Startup Act 2.0 includes the following provisions:

  • 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.

Many of the principles included in Startup Act 2.0 are endorsed by the President’s Council on Jobs and Competitiveness, which was represented at today’s announcement by Steve Case, a co-founder of AOL.

“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,” Steve Case said. “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.”

Startup Act 2.0 has been endorsed by TechAmerica, Financial Services Forum, National Small Business Association, CONNECT, CEA and the Computer and Communications Industry Association.

Comments

More Top Stories

  • Police & Crime Top Stories Two Virginia State Police troopers hurt in separate incidents

    Two Virginia State Police troopers hurt in separate incidents

    Two Virginia State Police troopers have been injured in separate accidents today. In the most recent incident, a trooper had stopped a traffic violator on the shoulder of the westbound lanes of I-66, just east of the Beltway/I-495 interchange. The trooper was standing next to the violator’s car when a passing vehicle ran off the road and collided with the vehicles stopped on the shoulder. The trooper was struck during the course of the collision. The trooper and three others have […]

    Read more →
  • Police & Crime Prince William Top Stories Virginia State Police trooper injured in crash

    Virginia State Police trooper injured in crash

    A Virginia State Police trooper is recovering after his vehicle was struck by an out-of-control SUV in Prince William County. The crash occurred at approximately 3:30 a.m. Tuesday along the southbound lanes of Interstate 95 near the 152 mile marker. Trooper I.J. Dallam Sr., was parked off the left side of Interstate 95 (where the former HOV lanes used to merge into southbound I-95) and running stationary radar on southbound traffic. A 2000 Ford Explorer was traveling at an excessive rate […]

    Read more →
  • Top Stories Transportation Connolly “stunned” at revelations, warns of Metro “safety gap”

    Connolly “stunned” at revelations, warns of Metro “safety gap”

    The Ranking Member of a House Subcommittee that on Friday will look at Washington Metrorail safety in the wake of the January 12 Yellow Line fatal smoke incident says he will focus on six urgent federal recommendations on ventilation just issued by the National Transportation Safety Board. Congressman Gerry Connolly (D-VA), Ranking member of the House Government Operations Subcommittee, said “Frankly, it is stunning that WMATA would need NTSB to remind it that the Metrorail system should have a ventilation […]

    Read more →
  • Falls Church Great Falls Herndon McLean Politics Top Stories Vienna Jennifer Chronis announces candidacy in Dranesville District

    Jennifer Chronis announces candidacy in Dranesville District

    Today, Great Falls resident Jennifer Chronis announced her campaign for Fairfax County Board of Supervisors-Dranesville District, picking up the endorsement of Supervisor Pat Herrity (R-Springfield). The seat is now held by John W. Foust. “Fairfax County is at a crossroads. The decline in federal spending is impacting our local economy after decades of prosperity, limiting the revenue that we need to invest in our schools, transportation and other needs that are critical to our quality of life,” Chronis said. “The […]

    Read more →
  • Health Top Stories Suspected Fairfax measles case tests negative

    Suspected Fairfax measles case tests negative

    The Fairfax County Health Department says a suspected case of measles has tested negative. The department had said yesterday (Tuesday) that it was investigating a possible case in an unnamed Fairfax County resident but today said tests came back negative. People who have received at least one dose of measles, mumps and rubella (MMR) vaccine in the past are at very low risk of being infected with measles. Measles is easily preventable through safe and effective MMR vaccine. The best […]

    Read more →
  • Health Top Stories Possible measles case in Fairfax

    Possible measles case in Fairfax

    The Fairfax County Health Department is currently investigating a suspected case of measles in a Fairfax County resident. Test results will not be known for approximately 24 hours. Health officials are currently identifying potential exposure sites, and the individual is in self-isolation at home. No other details will be announced until test results become available. If the case is positive, a news conference will be held on Wednesday, Feb. 11. People who have received at least one dose of measles, […]

    Read more →
  • Police & Crime Top Stories Warner offers tips to Virginians affected by Anthem data breach

    Warner offers tips to Virginians affected by Anthem data breach

    U.S. Sen. Mark R. Warner (D-Va.) provided a variety of useful resources and an online form on his Senate website today for Virginians potentially impacted by the cyberattack targeting Anthem to contact his office for assistance. Anthem, Virginia’s largest health insurer and the provider serving state and federal employees and retirees, announced today that hackers recently gained access to up to 80 million customer names, birthdates, Social Security numbers, mail and email addresses, employment and income information. Anthem reportedly is […]

    Read more →
  • Business Politics Top Stories Beyer buys in to plan to regulate Internet

    Beyer buys in to plan to regulate Internet

    As expected, Federal Communications Commission Chairman Tom Wheeler has outlined what he called the “strongest open Internet protections ever proposed” and Rep. Don Beyer (D-Va.) says Wheeler’s plan would ensure “fair, equal access” to everyone. The plan, outlined in a Wired magazine op-ed, would bring broadband service under Title II of the Communications Act, treating it for the first time as a public utility and enshrining the “network neutrality” principles long demanded by consumer advocates. Wheeler’s plan would outlaw “fast lanes” […]

    Read more →