recommended reading

Tax policy and low regulation drives tech innovation for Romney backers

Evan Vucci/AP

Technology innovation in the United States will be driven by corporate tax reform and reduced regulation, according to a panel of prominent Republicans at a Republican National Convention event hosted by Bloomberg and Google on Wednesday.

The panel was convened to discuss how government might create policies to encourage investment in high-technology and Internet companies — one of the few areas of growth among startups in recent years, according to a Bloomberg analysis that was briefly presented at the event.

However, as is often the case when talking about technology with backers of GOP presidential nominee Mitt Romney, the conversation kept returning to overall tax and economic policy.

Douglas Holtz-Eakin, president of American Action Forum, called for an end to the taxation of repatriated capital by U.S.-based multinationals and a lowering of the overall tax burdens on U.S. corporations.

“Our companies have the largest effective tax rates on the globe,” said Holtz-Eakin, a senior economic policy adviser to Sen. John McCain, R-Ariz., during his 2008 presidential bid.

Government needs to get out of the “product development” business, said former Commerce Secretary Carlos Gutierrez. Solyndra wasn’t mentioned by name, but the familiar Republican hobbyhorse was lurking in the background as panelists talked about what government should and should not do in terms of research and development.

Gutierrez, who served under President George W. Bush, echoed GOP calls for focusing government efforts on scientific research and away from the kind of late-stage commercialization of products in favored sectors like clean energy. “I worry about the inclination of government to say, ‘Fine, we have to do something, let’s spend $50 billion,’ ” he said.

On the stump, Romney has talked up a plan to attract highly skilled tech workers and entrepreneurs to the U.S. from abroad by offering legal immigration status to students who earn Ph.D degrees in the U.S.

Rep. Peter Roskam, R-Ill., backed the idea, and said that while it was a tough sell politically, “the country is willing to be led” on immigration. The key is to point to these highly skilled immigrants as a source of job creation for the overall economy, and not just in a few isolated sectors, he said.

Roskam predicted that an immigration bill that focused narrowly on highly skilled foreign workers could pass the House. “The obstacle is the Senate,” he said, “whenever they choose to wake up and yawn and look around and take on some of these tasks.”

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats


Close [ x ] More from Nextgov

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • It’s Time for the Federal Government to Embrace Wireless and Mobility

    The United States has turned a corner on the adoption of mobile phones, tablets and other smart devices, outpacing traditional desktop and laptop sales by a wide margin. This issue brief discusses the state of wireless and mobility in federal government and outlines why now is the time to embrace these technologies in government.

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

  • A New Security Architecture for Federal Networks

    Federal government networks are under constant attack, and the number of those attacks is increasing. This issue brief discusses today's threats and a new model for the future.

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

  • Software-Defined Networking

    So many demands are being placed on federal information technology networks, which must handle vast amounts of data, accommodate voice and video, and cope with a multitude of highly connected devices while keeping government information secure from cyber threats. This issue brief discusses the state of SDN in the federal government and the path forward.

  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.


When you download a report, your information may be shared with the underwriters of that document.