The guys in Silicon Valley. They, by and large, supported Obama and now they are regretting it because his appointees are moving fast to regulate and tax the industry. Surprise!!
They know a lot about integrated circuits, but almost nothing about politics and now their ignorance is coming back to bite them. Sorry fellows, you backed the wrong horse. Obama is killing innovation with more regulation and higher taxes. See the details in this article in TechNewsWorld.
At least one hi-tech entrepreneur gets it: “With its massive wealth transfers to the unproductive
sectors of the economy, the government is becoming an increasingly
reactionary force in American society.” What many in Silicon Valley fail to understand is the auto industry has more votes than they do.
“Earlier this month, the FCC sent a letter of inquiry to Apple (Nasdaq: AAPL)
,
a company that the agency has no statutory authority to regulate,”
noted Daniel Ballon, a policy fellow at the San Francisco-based Pacific Research Institute.This action “sends a message that the FCC’s reach is expanding
beyond traditional telecommunications carriers,” Ballon argued, “and
will impact every company and entrepreneur who interfaces with the
Internet.”
When government gets more involved in the day-to-day activities of any
business, it is a bad sign. Those who doubt that rule might ask Microsoft (Nasdaq: MSFT)
how much time and money government intervention has directed away from
research and into lobbyists’ and lawyers’ fees. On the antitrust issue,
Silicon Valley companies like Google (Nasdaq: GOOG)Christine Varney, Obama’s pick to lead the DoJ’s antitrust division,
rescinded guidelines limiting scrutiny of high-tech firms, leaving a
void that creates much uncertainty. Yet, as troubling as that may be to
large companies, “Obama’s appointment to head the FTC, Jon Leibowitz, has Silicon Valley’s Web 2.0 entrepreneurs in his crosshairs,” Ballon said.Chairman Leibowitz has been a vocal critic of online advertising
practices, warning Internet companies earlier this year that “a day of
reckoning may be fast approaching” and, according to Ars Technica,
“he suggested that the FTC may have to use its subpoena authority to
force companies to cough up information requested by the agency.”With the regulatory environment looking increasingly hostile, one
can understand why Valley denizens might gasp with disbelief at the
president’s proposal to impose U.S. taxes on overseas profits.“It would be like an earthquake for high tech,” said Carl Guardino, chief executive of the Silicon Valley Leadership Group.
Aiming a tax grab at productive companies growing international
markets while bailing out decrepit industries at home doesn’t make a
lot of sense. Silicon Valley entrepreneur and investor Peter Thiel
put it this way: “With its massive wealth transfers to the unproductive
sectors of the economy, the government is becoming an increasingly
reactionary force in American society.” The administration’s offer of
subsidies to “green tech” firms fails to make up for this
mismanagement.
