Tax & Trade

Startup News Digest 12/02/22

Startup News Digest 12/02/22

The Big Story: Time is running out for Congress to save imperiled immigration program. As the end of the year quickly approaches—and with it, the end of this session of Congress—the future of the Deferred Action for Childhood Arrivals Program (DACA) remains uncertain. DACA recipients play a key role in the startup ecosystem as entrepreneurs and STEM talent. Without Congressional action, the future of the program will likely end up in the hands of the Supreme Court, which could invalidate the program. Senate Democrats are pushing to provide permanent status for Dreamers before that happens.

Startup News Digest 11/18/22

Startup News Digest 11/18/22

The Big Story: Online sales tax back in the spotlight with watchdog report. A government agency is recommending that Congress address the patchwork of state laws that govern online sales taxes, an issue that has burdened e-commerce businesses, including many startups. In a new report this week, the Government Accountability Office examined the “substantial uncertainty” and complexity of the current remote sales tax landscape and recommended that Congress work with states to streamline requirements and minimize the burdens currently imposed on businesses across the country.

Startup News Digest 11/04/22

Startup News Digest 11/04/22

The Big Story: Affirmative Action cases will impact innovation ecosystem. This week, the U.S. Supreme Court heard two cases that could upend race-conscious admissions policies used by many universities and alter the pipeline for STEM talent in the innovation ecosystem. Eliminating the ability to consider race in college admissions would have an outsized impact on on-campus diversity, the racial and ethnic diversity of many employers hiring college-educated talent throughout the country, and the makeup of the startup ecosystem and the breadth of innovation it produces.

Startup News Digest 10/21/22

Startup News Digest 10/21/22

The Big Story: Judge strikes down Maryland tax on digital advertising. A Maryland judge struck down the U.S.’ first tax on digital advertising, which faced vocal challenges including from technology companies and would have resulted in taxed companies passing down its cost to customers, including startups. In a ruling on Monday, the court found the tax, implemented by Maryland lawmakers to raise revenue, unconstitutional and a violation of the Internet Tax Freedom Act.

Startup News Digest 10/14/22

Startup News Digest 10/14/22

The Big Story: Proposed independent contractor rule could make hiring harder for startups. This week the Department of Labor (DoL) issued a proposed rule that is likely to impact how early-stage startups build their teams. The DoL’s proposed rule on worker classification would limit who can be considered an independent contractor and comes shortly after the Federal Trade Commission (FTC) announced similar enforcement priorities for the gig economy. As we shared in a recent blog post, the rule could limit startup flexibility in their hiring decisions, which could particularly impact growing companies with lean budgets.

Startup News Digest 09/30/22

Startup News Digest 09/30/22

The Big Story: Network access fee debates heat up worldwide. This week, European telecom companies redoubled their push to make large Internet companies pay based on the traffic they generate, a policy that would undermine net neutrality principles and negatively impact the broader Internet ecosystem. The push comes after months of agitating by Internet service providers (ISPs) for the payments, called network access fees, and amid a growing number of jurisdictions that have taken steps toward such policies, including South Korea.

Startup News Digest 09/23/22

Startup News Digest 09/23/22

The Big Story: SBIR reauthorization on the horizon, heads to the House. After months of negotiations, a key grant program for startups is expected to be reauthorized just in time for its scheduled expiration at the end of the month. The House is expected to vote next week to reauthorize the Small Business Innovation Research (SBIR) program, following a vote in the Senate to reauthorize the program for three years this past Tuesday. The program serves as a critical funding source for many startups engaged in research and development (R&D).

Startup News Digest 04/29/22

Startup News Digest 04/29/22

The Big Story: EU advances overhaul of content moderation rules. Early Saturday morning, the European Union reached an agreement on a final version of landmark legislation to govern online intermediaries hosting user content in the EU. The legislation, known as the Digital Services Act (DSA), will build on existing EU law and create new obligations for companies—including startups—that will require additional staff, development of new tools, and attention toward compliance in order to serve users in the EU.

Startup News Digest 04/22/22

Startup News Digest 04/22/22

The Big Story: Startups should be prominent voice in merger guidelines re-write. This week, Engine submitted comments in response to a request for information (RFI) from the Federal Trade Commission (FTC) and the Department of Justice (DOJ) Antitrust Division on merger enforcement. The agencies issued the RFI in January as they move toward re-writing the merger guidelines, guidance that outlines how the agencies will analyze prospective mergers, which is traditionally relied on by the agencies, companies, and courts alike. Sound merger enforcement that mitigates illegal anticompetitive behavior is important for startup success, but policymakers must balance those potential harms with the benefits of acquisitions. If the new guidelines are too restrictive, they risk burdening legal transactions—including those of startups, thereby limiting startups’ exit opportunities and stemming the flow of capital in the startup ecosystem.

Startup News Digest 02/18/22

Startup News Digest 02/18/22

The Big Story: Over 100 startups, investors, organizations defend QSBS tax treatment. This week, more than 100 startups, startup investors, and startup support organizations sent a letter to Congress urging them to preserve the current tax treatment of Qualified Small Business Stock (QSBS), which helps startups attract early-stage investment and employees.

Startup News Digest 02/11/22

Startup News Digest 02/11/22

The Big Story: EARN IT Act moves forward despite concerns from lawmakers, advocates, and industry. A bill moving through the Senate would amend critical Internet legal frameworks that startups rely on to host user-generated content and disincentivize startups from using privacy and security-enhancing measures like encryption.

Startup News Digest 02/04/22

Startup News Digest 02/04/22

The Big Story: The startup policy priorities for 2022. This week, Engine released its 2022 Startup Agenda, highlighting the policy priorities of the U.S. startup ecosystem and featuring startups across the country explaining the ways policy can support them. As we explain in the agenda, there are startups in every state and every congressional district. There are startups that have all kinds of business models and rely on all types of funding. There are startups that operate in every sector of U.S. industry. And all of them will be impacted by policymakers' decisions across a range of issues.

Startup News Digest 01/28/22

Startup News Digest 01/28/22

The Big Story: America COMPETES is a mixed bag for startups. The new sweeping House package aimed at boosting American competitiveness and innovation has several provisions that would dramatically improve the startup ecosystem, but the bill also includes an unrelated bill that would harm e-commerce startups.

Startup News Digest 01/21/22

Startup News Digest 01/21/22

The Big Story: 10 years later, SOPA has lessons for startup policy. This week, we’re reflecting on copyright policy’s past as well as the impact it will continue to have on innovation, and what that all means for high-tech, high-growth startups and the Internet users and creators that depend on them. Engine, alongside many organizations, remembered and commemorated the 10 year anniversary of the defeat of the Stop Online Piracy Act (SOPA) with conversations of what balanced, innovation-friendly copyright policy looks like for startups and small businesses.

Startup News Digest 01/14/22

Startup News Digest 01/14/22

The Big Story: Startups watch as Senate considers tech, telecom nominees. This week, the Senate continued to weigh Biden's key picks for a variety of tech leadership roles—including nominees that could support startup formation and help to create a broader innovative environment.

Startup News Digest 01/07/22

Startup News Digest 01/07/22

The Big Story: Changes to copyright rules would hurt news, commentary startups, and free expression. As a few countries adopt or consider laws that would require websites to pay whenever they—or their users—link to or quote a news article, the U.S. Copyright Office is studying what those sorts of laws would mean here. In comments this week, Engine emphasized the substantial unintended consequences of such policies, which would not just alter how information is shared and communicated online, but cause problems for startups and innovation.

Startup News Digest 12/17/21

Startup News Digest 12/17/21

Startup Policy: 2021 Year in Review. The past year saw a new administration, a new Congress, and several policy conversations at the federal and state levels that could dramatically shift the landscape for the startup ecosystem in the U.S. both here at home, and abroad.

Startup News Digest 12/10/21

Startup News Digest 12/10/21

The Big Story: Congress talks online content, but startups are sidelined. As Congress continues the drumbeat of complaints about user-generated content on the Internet, the conversation misses the realities of content moderation and the role content moderation plays for startups.

Startup News Digest 12/3/21

Startup News Digest 12/3/21

The Big Story: Startups watch as Congress considers tech nominees. This week, Senate committees weighed in on several individuals President Joe Biden nominated to key tech leadership roles, shedding some light on the direction the nominees might take to support startup innovators. In a series of hearings, Senators considered acting Federal Communications Commission (FCC) Chair Jessica Rosenworcel and FCC nominee Gigi Sohn, as well as Alan Davidson, who was nominated to lead the National Telecommunications and Information Administration (NTIA), Federal Trade Commission nominee Alvaro Bedoya, and Kathi Vidal, who was nominated to lead the Patent and Trademark Office.

Startup News Digest 11/19/21

Startup News Digest 11/19/21

The Big Story: Making the startup ecosystem more equitable. Startup founders with innovative ideas should have the chance to succeed, no matter where they’re located or what they look like. But too often, underrepresented founders—including women and founders of color—are denied the opportunity to get investments, launch, and grow. This week, Engine released an assessment of barriers that underrepresented founders face as well as policy proposals to alleviate those barriers.