Warner, Kaine tackling business growth, budgeting in bipartisan fashion
U.S. Senators Tim Kaine and Mark Warner are getting down to business in the 114th Congress – and bipartisan business at that.
Virginia's Democratic senators – now in the upper chamber's minority following the Republican thumping in last year's midterms – have been abuzz in the session's opening weeks, tacking their names to several GOP-backed proposals.
First came legislation calling for biennial budgeting (S.150), something Kaine, Warner and other “regular order” advocates say will provide the public and private sectors more certainty, followed by the reintroduction of the Startup Act (S.181) aimed at spurring economic activity and innovation.
Both bills were introduced by Republicans, per Congress.gov, proving true predictions that Warner and Kaine will be among the crop Democrats the GOP hopes to pick off to help move legislation through Congress.
Despite the strengthening national economy, Virginia's senators remain fearful of a new round of sequestration cuts, set to go into effect in October. That in mind, Warner and Kaine say their focus is on advancing business-friendly legislation through the Senate, regardless of whether the bill's patron has an “R” or “D” after his or her name.
The Biennial Budgeting and Startup acts, given the link they can have on federal spending, are two early examples of Republican-backed measures Warner and Kaine are touting.
The Startup Act, according to a Senate aide, makes “targeted proposals in tax, regulatory and immigration policy” and creates “Entrepreneur and STEM visas for highly-educated immigrants educated in the U.S.”
Speaking on the act, Warner said the proposal “provides commonsense tools and greater support for startups and the creation of more high-wage, high-skill jobs in Virginia and across the country."
Bobbie Kilberg, a prominent voice in the local business sector as president of the Northern Virginia Technology Council, praised the Startup Act, saying it addresses some obstacles entrepreneurs are facing in the current business climate, including recruiting and retaining talent, accessing capital and generating new intellectual property.
“These reforms will greatly benefit Northern Virginia’s growing hub of leading technology companies and help innovative young businesses across America grow and prosper,” Kilberg said in a statement.
Loudoun County Chamber of Commerce President Tony Howard told the Times-Mirror he's intrigued by the proposals.
"The effort to support immigrant entrepreneurs sounds like a very compelling and probably effective set of ideas," Howard said. "I have been reading about many of these entrepreneurs finding more friendly environments back home and, on occasion, less hospitable environments in the U.S., particularly as it relates to their ability to remain here after college."
The Biennial Budgeting and Appropriations Act, meanwhile, would require the president to submit a two-year budget at the beginning of each new congressional session. Members of Congress would then adopt a two-year budget resolution, a reconciliation bill between the two chambers' budgets if necessary and a two-year appropriations bill during the first session. The second year of a Congress would then consider the authorization bills and oversight of federal programs.
Of the 23 co-sponsors for the Biennial Budgeting Act, 15 are Republicans, seven are Democrats and one is an independent. The Startup Act is sponsored by four Democrats and two Republicans. Both proposals have been referred to committee.
“I'm here to do a job,” Sen. Kaine told the Times-Mirror in an interview last month. “And the job isn't for my party team, the job is for the country and for the commonwealth. Look, if I think it's good for the country and the commonwealth, I'm going to do it – I don't care if it's a Republican sponsor, I'm going to do it.”
The Startup Act includes the following provisions, according to its sponsors:
Immigration:
·Creation of Entrepreneur Visa: Creates an Entrepreneur’s Visa for legal immigrants, so they can remain in the United States, launch businesses and create jobs;
·Creation of STEM Visa: Creates a new STEM visa so 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;
·Elimination of Per-Country Caps: Eliminates the per-country caps for employment-based immigrant visas – which hinder U.S. employers from recruiting the top-tier talent they need to grow
Tax Reforms:
·Capital Gains Tax Exemption for Startups: 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;
·R&D Credit for Startups: Creates a limited 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;
Commercialization: Uses existing federal R&D funding to support university initiatives designed to bring cutting-edge research to the marketplace more quickly where it can propel economic growth;
Regulatory Reform: Requires all government agencies to conduct a cost-benefit analysis of all proposed “significant rules” with an economic impact of $100 million or more. This new requirement will help determine the efficacy of regulations and their potential impact on the formation and growth of new businesses; and
Reports on State and Local Startup Policies: 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 on new business formation and the entrepreneurial environment, lawmakers will be better equipped to encourage entrepreneurship with the most successful policies.
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