Representative Darrell Issa (R-Calif.) has accused the Federal government of stifling job growth in the technology sector with compliance regulations.
Issa is the former chairman of the Consumer Electronics Association and the current head of the House Oversight and Government Reform Committee. On April 18, he delivered a speech in San Jose, Calif., presenting concerns from some of the nation's top technology representatives, The Hill reported.
He said that many start-up companies are avoiding the United States because of the high corporate tax rate and a lack of a permanent research-and-development tax credit. Issa cited Intel chief executive Paul Otellini, who says that it costs an extra $1 billion per factory to build in the U.S., compared to overseas.
A total of 90 percent of those additional expenses go to tax and regulatory compliance, Otellini told Issa.
According to The Wall Street Journal, the Commerce Department reports that U.S. companies added 2.9 million jobs domestically and 2.4 million positions overseas during the 2000s. That is a dramatic ratio differential compared to the 1990s, when 4.4 million jobs were created in America, while 2.7 million were added abroad.