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

  • Arlington Fairfax Police & Crime Top Stories Open season on pedestrians; five killed in hit-and-run accidents

    Open season on pedestrians; five killed in hit-and-run accidents

    It’s dangerous out there for pedestrians and bicyclists. Virginia State Police say five pedestrians and one biker have been struck and killed in hit-and-run accidents in the past two months. Many more have been injured, including two men who were struck in an Arlington parking lot, allegedly by a Fairfax woman, earlier this week. In the Arlington incident, Alexandra Mendez, 39, was arrested at her Fairfax home and was being held in the Arlington Adult Detention Center. She is accused […]

    Read more →
  • Floods & Natural Disasters Top Stories Winter storm threatens Monday’s commute

    Winter storm threatens Monday’s commute

    Beginning with the Monday morning commute, the Virginia Department of Transportation is asking drivers to plan for the next 36 hours, as crews prepare for the next three rush hours to be impacted by a wintry mix and up to five inches of snow. “Drivers who go to work Monday will likely have a more difficult time getting home with a wintry mix and snow forecasted to continue throughout the day,” said Branco Vlacich, VDOT’s district maintenance engineer for northern […]

    Read more →
  • Top Stories Transportation Warner, Connolly on Metro: “Some answers but a lot of questions remain”

    Warner, Connolly on Metro: “Some answers but a lot of questions remain”

    The virtual blackout on information about the Jan. 12 Metro accident that killed one woman and hospitalized more than 80 others continued today, with a few rays of light getting through as the National Transportation Safety Board (NTSB) and the Washington Metropolitan Transit Authority (WMATA) briefed members of the Virginia, Maryland and District Congressional delegations. Shamefully, all agencies except the D.C. City Council have kept the taxpayers and commuters who pay for the Metro system in the dark, assuring them […]

    Read more →
  • Centreville Chantilly Clifton County Government Oakton Politics Top Stories Schoeneman announces candidacy to succeed Frey in Sully District

    Schoeneman announces candidacy to succeed Frey in Sully District

    Fairfax County Electoral Board Secretary Brian Schoeneman has announced his intent to run for the Fairfax County Board of Supervisors, seeking the seat being vacated by Supervisor Michael Frey (R-Sully), who announced his retirement on Monday. Schoeneman immediately picked up the endorsement of Pat Herrity (R-Springfield), who said he supported Schoeneman “100%.” “Having spent the last two years supervising elections in Fairfax County, I realized that I could better serve my community by putting my name on a ballot, rather […]

    Read more →
  • County Government Politics Top Stories Sully District’s Michael Frey won’t run again

    Sully District’s Michael Frey won’t run again

    Sully District Supervisor Michael Frey says he will not seek re-election to the Fairfax County Board of Supervisors. Frey, a 24-year veteran, made the announcement in an email to his constituents this morning, saying that during his time on the board, Fairfax County has “grown and developed into one of the most amazing places to live, work and raise a family not just in Northern Virginia but the entire country.” We have an active and engaged community of citizens who work […]

    Read more →
  • County Government Top Stories Elected county board, school board members prepare to vote themselves a raise

    Elected county board, school board members prepare to vote themselves a raise

    The Fairfax County Board of Supervisors is frequently at odds with the Fairfax County School Board, which relies on the county board for its funding. The schools spend too much, the county board complains. The county pays too little, the school board complains. But on one thing, they both agree: their salaries should be increased. Both the county board and the school board are moving in a stately and steady manner towards giving themselves whopping raises in a year when […]

    Read more →
  • Top Stories Transportation Connolly, Beyer call for “clear and thorough” probe of fatal Metro accident

    Connolly, Beyer call for “clear and thorough” probe of fatal Metro accident

    Congressmen Don Beyer (D-VA) and Gerry Connolly (D-VA) are calling for a “clear and thorough” investigation of the Metro Yellow Line accident that left at least one person dead and many others ill. “We are heartbroken at the news of today’s events on the Metro line and await a clear and thorough accounting of the events that led to today’s tragedy.  No one should fear for their lives on their commute.  Our thoughts and prayers are with the victims and […]

    Read more →
  • Politics Top Stories House bill would raise Virginia’s minimum wage to $15.15

    House bill would raise Virginia’s minimum wage to $15.15

    As the 2015 legislative session is gearing up to begin, Delegate Marcus B. Simon (D-53rd) is taking on income inequality by targeting it at the source. One of his top priorities this session is bill HB 1512, legislation he introduced to raise the minimum wage in the Commonwealth to $15.15 per hour. Many residents of the Commonwealth work full time jobs yet still struggle to get by in the high-cost region. The Federal minimum wage has not been indexed to keep […]

    Read more →