New York TechnoloDonn Morrill and Matthew Evans, Manager of Public Advocacy for CompTIA, discuss the goings-on in Washington and what is being done to help small and mid-sized technology companies survive this difficult economic climate.
Briefing:Congress & the SMB Tech CompanyMatthew L. EvansManager, Public AdvocacyCompTIA
Agenda CompTIA & TechVoice Payroll Tax Cuts Internet Sales Tax Access To Capital Immigration Reform Cybersecurity
CompTIA & TechVoice www.techvoice.org Partnership between CompTIA and Regional Tech Associations Across the Country
SMB IT Is Important to the U.S.Economy and Jobs• SMBs in the IT industry account for about 40% of industry jobs -- 2 million workers and 163,000 employer businesses• 400,000 self-employed IT industry workers that are not classified as business establishments by the U.S. Census Bureau• 75% of all IT products and services representing over $350 billion, are sold or provided to businesses through the channel as opposed to through retailers or direct sales.• 450,000 IT and IT related jobs are presently unfilled.
Payroll Tax Cut• 2011 – Temporarily reduced from 6.2% to 4.2%• Reduce and Streamline Payroll Taxes for Small IT Firms • Suspend payroll taxes for all new hires • Reduce payroll tax for both employer and employee • Allow small employers to file payroll tax returns annually• CompTIA Tax Survey – #1 Issue: Simplification & Reduction of Payroll Taxes• Possible of Extension of Tax Cut – Congress: The Saga Continues • Super Committee and Beyond
SMB Rating of Importance of PossibleFederal Tax Code Changes Net Importance* to Their Business Payroll tax reduction 72% Corporate tax rate reduction 59% Capital gains tax rate reduction 46% Workforce training tax credit expansion 38% NOL carry back expansion 31% *Important + Very Important
Access To Capital• Increase the IT Industry’s Access to Capital • Maintain the section 179 small business expensing at $500,000 • Simplify Equity capital: Crowdfunding and Reg. A.• Legislation – H.R. 2930 “Entrepreneur Access to Capital Act” – S. 1791, “Democratizing Access to Capital Act”• Compliance Burdens – SEC Reg. A – SEC Reg. D
Immigration Reform• STAPLE ACT – Rep. Jeff Flake (R-AZ) – No Action• IDEA ACT – Rep. Zoe Lofgren (D-CA) – No Action• Fairness for High-Skilled Immigrants Act (H.R. 3012) – Rep. Jason Chaffetz (R-UT) – Passed House (Nov. 29th)
Internet Governance• Cybersecurity – Data Breach – Privacy – Cloud Computing – Mobility and Security• Legislation – Senate • Reid (D-NV) & McConnell (R-KY) – House • Mike Rogers (R-MI)
CompTIA Policy Priorities Congressional Small Business Information Technology Caucus. Increase the information technology industry’s ability to access capital. Reduce and streamline payroll tax deductions for employers. Foster education and expansion of the IT workforce. Enact a uniform approach to data breach & notification. Prevent regulation of the cloud.