By: Paula Collins, TI vice president of worldwide government relations
Congress has begun its work in 2014, and President Barack Obama has just delivered his annual State of the Union address. Many Americans and political commentators question what can be accomplished in an election year.
Here are the top priorities that TI and the semiconductor industry believe would help create economic opportunity, ensure the country is well positioned for the next century, and advance the competitiveness of the U.S. semiconductor industry.
The president mentioned many of these in his address. Each issue enjoys some level of bipartisan support.
Trade: The U.S. is negotiating a series of important trade deals that can spur growth and help U.S. companies compete globally, specifically opening markets in Europe and the Pacific Rim.
The president called for reinstatement of trade promotion authority — legislation that enables Congress and the administration to collaborate on U.S. trade negotiations and secure the implementation of the resulting agreements.
TI strongly supports the recently introduced Bipartisan Congressional Trade Priorities Act of 2014, which provides that authority and establishes a solid foundation for addressing trade issues in the high-tech economy.
The president and Congress should also urge world leaders to agree on an expanded Information Technology Agreement (ITA), which in 1996 eliminated tariffs on many high tech products but has not been updated in nearly 20 years.
This would be meaningful for the semiconductor industry, which now has multichip packages and multi component devices that are not covered under the ITA.
Fundamental scientific research: Innovation is key to ensuring that the U.S. semiconductor industry keeps enabling new and exciting technologies that transform lives, spur new industries and increase productivity.
Obama noted the important role of fundamental scientific research to innovation and growth. Federal support for basic research at universities and in the national labs has lagged for decades, however, and has recently been subject to cuts and larger budget uncertainties.
Federal funding is essential for the continuation of vital research partnerships that ultimately to foster and drive innovation in the US.
STEM education: Science, technology, engineering, and math (STEM) skills are critical to an information-based economy.
TI strongly supports efforts to foster STEM education and school improvement, particularly in communities where the company has a presence. TI supports policies that will help equip Americans students to succeed in in the global marketplace.
Immigration: Reforming thenation’s immigration laws remains a priority of many in the tech sector as well as other industries and communities.
The Senate passed a bill by a strong bipartisan margin in 2013, and House leaders are signaling their interest in finding a path forward to addressing the many issues involved in meaningful reform. This is a priority of Obama’s and a key point made in his speech.
Tax: Obama and Congress recognize that the U.S. tax system needs reform to be globally competitive, though there is not uniform agreement on how that would best be accomplished.
TI supports fundamental U.S. federal tax reform that provides a simpler and fairer tax code that ends special tax breaks and preferences, sets the corporate tax rate at 25% and transitions to a modern, hybrid international system.