New Democrat Coalition Leadership Denounces Cuts to R&D Tax Credit, Severe Limits on H1-B Visa Program

Touts Democratic Innovation Agenda to Strengthen U.S. Economic Competitiveness

WASHINGTON, DC-- Today, the four co-chairs of the New Democrat Coalition (NDC) condemned Republican attempts to cut important technology innovation initiatives from the highly partisan Budget Reconciliation bill. These attempts include cutting the Research and Development (R&D) tax extension and severely curtailing the highly regulated, and effective, H1B visa program.  While top Republicans are trying to strip these provisions, House Democratic Leader Nancy Pelosi (D-CA) has introduced an innovation agenda that advances these critically important policies and will ultimately keep our U.S.-based technology companies competitive in a global market.

“The United States is a world leader in technology and innovation and we must adopt federal policies that encourage growth in this sector, not hinder it,” said NDC Co-Chair U.S. Rep. Adam Smith (D-WA). “The R&D tax credit allows leading-edge technology companies to invest more into the creation of products and services that will continue to keep the United States on top in the world marketplace.”

New Democrats particularly recognize the need to use all available resources in order to obtain the best and brightest workers. The leadership of the NDC was disappointed to learn that top Republican leaders were to trying strip the bipartisan Specter-Kennedy-Feinstein immigration language recently supported by 85 members of the Senate. The plan would provide much needed immigration relief for our nation’s leading innovation companies by recapturing unused H1B visas and green cards for use today while also increasing visa application fees.

“The New Democrat Coalition stands for opportunity, equality, and innovation—values that our far right conservative colleagues apparently don’t share.  We oppose the Republicans’ efforts to pass their budget reconciliation bill by slashing the R&D tax credit and eliminating widely supported compromise language on H1-B visas for temporary foreign workers with professional specialties.  We have an opportunity to develop good policy—encouraging development of new, innovative technologies and providing opportunities for the workers who possess the best possible skills—but instead, the majority’s political objectives are ruling the day,” said Rep. Ellen O. Tauscher (D-CA), Chair of the NDC.

New Democrats played a large role in the rollout of Leader Pelosi’s innovation agenda.  In part, her agenda calls for a sustained commitment to research and development and investment in math and science education, particularly in K-12 education. The agenda also calls for affordable broadband access for every American within five years, energy independence in 10 years and a competitive small business environment for innovation.

“The single most important factor in determining America’s success in the 21st Century will be maintaining our innovation and creativity,” said NDC Co-Chair Rep. Ron Kind (Wis.).  “That is why the New Democrat Coalition has been strongly dedicated to ideas and policies to foster innovation and guarantee American competitiveness in today's global economy. New Democrats are committed to expanding our nation's innovation capacity and are fully behind the Democratic Innovation Agenda to ensure America remains a world economic leader.”

“At a time when we should be strengthening our investment in public education and technological innovation, the Republican leadership has put ideology ahead of common sense.  More than any measure I have seen since I came to Congress, this budget package turns our priorities upside down,” said NDC Co-Chair Rep. Artur Davis (D-AL).

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