Since Trump’s recent victory in the presidential election, the technology community has been trying what his term could mean for the technology sector. Even though he has changed positions on many of his campaign promises, here is what the President-elect plans to do with several important issues that can impact the tech sector.
Everyone knows two of the cornerstones of Trump’s campaign were creating more American jobs, and curbing immigration. Speaking to both of those issues, Trump has stated that he would like to cancel the H-1B program, which grants temporary visas to non-immigrant workers.
Trump has stated that the visa program creates an “influx of foreign workers holds down salaries, keeps unemployment high, and makes it difficult for poor and working class Americans.”
Trump recent proposal of Senator Jeff Sessions for his administration’s Attorney General – a longtime opponent of the program – could seal the deal on its cancellation. It is Session’s opinion that through this program, “thousands of US workers are being replaced by foreign labor.”
Since the H-1B visa was intended for advanced occupations that usually necessitate a college degree, many companies use them to hire technology workers. If the program were to be cancelled, the pool of international talent that top American tech firms are used to pulling from could dry up. This could be a huge setback for tech giants who count on these foreign engineers and scientists for their R and D.
However, some Trump allies have high hopes that he won’t kill the program entirely, and may just reform it to help prevent companies from abusing some of its loopholes.
Net neutrality simply means an “open Internet.” It stipulates that Internet service providers (ISPs) should give consumers access to all online content on an equal basis, without favoring some providers or blocking others. It also disallows ISPs from charging content providers for faster delivery of their content or purposely slowing the content from providers that are competing with ISPs.
Trump recently appointed Jeffrey Eisenach and Mark Jamison - two opponents of the current net neutrality rules to oversee the FCC’s transition to his administration. Jamison has been quoted in saying that “Net neutrality in the US is backfiring.” Jamison believes that his perceived failure of it is fostered by too many petty regulations that hurt businesses and consumers more than it helps. Eisenach is no fan either having testified against net neutrality rules in a Senate Judiciary Committee hearing in back in September 2014.
Trump’s recent Twitter post that he feels Net Neutrality is a “top down power grab” designed to target “conservative media” does not bode well for the regulation.
Republicans have always run on a platform of lower corporate taxes and less regulation, and Donald Trump is no different. If he is true to his world, and manages to change corporate tax rates to a flat 15%, this could cause some tech firms to move some money back into the U.S. That would free up capital for business to invest in R&D, production, as well as mergers and acquisitions.
It’s hard to say what Trump will actually do once he gets in the Oval Office, as he has been inconsistent when it comes to his policies. All the tech sector can do now is hold its breath and wait.
