ACT OPPOSES SENATOR SANDERS’ PROPOSED H-1B AMENDMENT TO IMMIGRATION BILL

BY JONATHAN ZUCK, PRESIDENT OF THE ASSOCIATION FOR COMPETITIVE TECHNOLOGY

Today, Senator Bernie Sanders of Vermont began courting fellow senators to support an amendment to the current immigration bill that would raise the fee for H-1B visas in order to fund a scholarship program for American students pursuing math and science degrees. The Association for Competitive Technology (ACT) believes it is important to address the dwindling pool of American-born graduates in math and science, but this is clearly not the solution to that problem.

Jonathan Zuck, president of ACT: “This amendment will cripple the culture of innovative entrepreneurship that has made America the world’s technology leader. High tech startups like Telligent, Sax Software, and Magenic Technologies are already struggling to find the talent they need to compete in the global marketplace. By making H-1B talent financially infeasible, particularly for truly small firms, Sanders may kill off the next Google before it even has a chance to raise venture capital and create new jobs.”

Senator Sanders suggests that H-1Bs serve to lower high tech wages. The reality is that startups aren’t looking for H-1B talent because it is cheaper. They are trying to bring in foreign talent because it is the ONLY talent available. They are competing with the world’s largest companies for the best talent available and often must rely on H-1B professionals to grow their companies and bring new innovations to market. This enormous new tax will take yet another option away from startups.

According to Zuck, “American entrepreneurs are a nearly inexhaustible source of innovative ideas. It would be devastating if they didn’t have the resources necessary to bring those ideas to market. The fact remains that growth in the small business IT sector is the most important engine for job growth in America today. A single H-1B employee with specific talents is often the catalyst to hiring many more new employees. The best chance at creating new American jobs is though small business growth, not by 500% tax increases on start-ups.”

For more information:

Mark Blafkin

Association for Competitive Technology

Phone: 202.420.7483 eMail: [email protected]

The Association for Competitive Technology (ACT) is an international education and advocacy group for the technology industry. Focusing on the interests of small and mid-size entrepreneurial technology companies, ACT advocates for a “Healthy Tech Environment” that promotes innovation, competition and investment. ACT has been active on issues such as intellectual property, international trade, e-commerce, privacy, internet policy and antitrust. ACT represents more than 3000 software developers, systems integrators, IT consulting and training firms, and e-businesses from around the world.