Case_Neg_-_Startups

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					USF Debate 2010-2011                                                                                                                                                   Case Neg – Startup Visas
Gonzo                                                                                                                                                                                       1/9


                                                                                   STARTUP NEG

Startup Neg ................................................................................................................................................................................................ 1
EB-5 Counterplan ...................................................................................................................................................................................... 2
Funding PIC – 1NC ................................................................................................................................................................................... 3
Funding Pic – Solvency ............................................................................................................................................................................. 4
Funding PIC – Politics Link ...................................................................................................................................................................... 5
Tech Innovation F/L .................................................................................................................................................................................. 6
Solvency F/L .............................................................................................................................................................................................. 7
Politics – Bipartisan ................................................................................................................................................................................... 8
Politics – Unpopular (Congress) ................................................................................................................................................................ 9




                                        For every action there is an equal and opposite government program – Bob Wells
USF Debate 2010-2011                                                                                          Case Neg – Startup Visas
Gonzo                                                                                                                              2/9


                                                 EB-5 COUNTERPLAN

Counterplan Text: The United States Citizenship and Immigration Services should partner with the Department of Commerce
to administer the EB-5 Immigrant Investor Program.

Contention 1 is Competition – counterplan competes through net benefits

Contention 2 is Solvency –

Partnering with the DOC on EB-5 visas will revitalize the program
Denise A. Vanison et. al (Director of Policy and Strategy USCIS) 2010: Administrative Alternatives to Comprehensive Immigration
Reform. http://www.numbersusa.com/content/files/ExecutiveMemo.pdf
1. Partner with the Department of Commerce (DOC) to administer the EB-5 Immigrant Investor Program
The EB-5 program allows certain aliens who have made investments in US businesses and who created at least ten jobs to obtain LPR
status. Due to a number of factors, the EB-5 program has been under utilized and, as a result, job creation under this program has been
limited. USCIS views the EB-5 program as an important too in assisting the U.S. economy as our country continues to recover from
the recent recession. Currently, an opportunity exists for USCIS and the DOC to work together in promoting the EB-5 Immigrant
Investor Pilot Program (Pilot Program). The goals of the Pilot Program and the goals of certain DOC components, such as Invest in
America, seem to provide a natural starting point for agency collaboration. OPS proposes setting up a working group with the DOC to
determine how DOC might assist USCIS in making the EB-5 program more accessible to foreign investors through administrative
efficiencies and promotion.




                          For every action there is an equal and opposite government program – Bob Wells
USF Debate 2010-2011                                                                                                                       Case Neg – Startup Visas
Gonzo                                                                                                                                                           3/9


                                                                FUNDING PIC – 1NC

Counterplan Text: The United States federal government should create a job creator’s visa with a criterion threshold of hiring
ten workers.

Contention One is Competition –
   a. Mutually exclusive – counterplan is just a PIC out of the funding portion of the plan. They can’t create two
        contradictory visa catagories.
   b. Net benefit is politics – the counterplan is contentious

Contention Two is Solvency –

Counterplan solves better than the plan – more entrepreneurs will come because few of them can meet the funding
requirements
Wall Street Journal 3/7/2010: Visas for the Next Sergey Brin.
http://online.wsj.com/article/SB10001424052748704231304575092112141325800.html
Here's a way to improve on the Kerry-Lugar plan. Create a true "job creator's visa," one tied directly and only to job creation by new
immigrant entrepreneurs. The visa could be a temporary one for immigrants already here on another visa who establish a business. It
could then be extended if the firm hires at least one American non-family resident. The visa should become permanent once the
enterprise crosses a certain job threshold (such as five or 10 workers). But it would not be tied to financing. There are plenty of
immigrants who might qualify: the one million skilled foreign workers now here on H1-B visas who otherwise must go home after six
years, as well as the roughly 60,000 foreign students who earn degrees at American universities each year. These are far larger
numbers than those who could qualify under the Kerry-Lugar proposal. Granted, allowing more immigrants into the country, or granting more
of those already here permission to stay, is a politically sensitive issue. That may be why the Kerry-Lugar bill was drafted so narrowly. Also, tying the visa to the angel
investor and venture capital communities gives the plan some natural domestic constituents to help push it through.

Contention 3 is the net benefit

Kerry Lugar bill is drafted as a compromise to win over angel investor and venture capital lobbies
Wall Street Journal 3/7/2010: Visas for the Next Sergey Brin.
http://online.wsj.com/article/SB10001424052748704231304575092112141325800.html
Here's a way to improve on the Kerry-Lugar plan. Create a true "job creator's visa," one tied directly and only to job creation by new immigrant entrepreneurs. The visa
could be a temporary one for immigrants already here on another visa who establish a business. It could then be extended if the firm hires at least one American non-
family resident. The visa should become permanent once the enterprise crosses a certain job threshold (such as five or 10 workers). But it would not be tied to
financing. There are plenty of immigrants who might qualify: the one million skilled foreign workers now here on H1-B visas who otherwise must go home after six
years, as well as the roughly 60,000 foreign students who earn degrees at American universities each year. These are far larger numbers than those who could qualify
under the Kerry-Lugar proposal. Granted, allowing more immigrants into the country, or granting more of those already here permission to
stay, is a politically sensitive issue. That may be why the Kerry-Lugar bill was drafted so narrowly. Also, tying the visa to the angel
investor and venture capital communities gives the plan some natural domestic constituents to help push it through.

Concessions result in voters’ unfavorably viewing failed results of compromises – kills agenda
Lincoln Mitchell - Assistant Professor in the Practice of International Politics, Columbia University – 12/15/ 2009 (―Keeping the Wheels
on the Obama Presidency‖, The Huffington Post, http://www.huffingtonpost.com/lincoln-mitchell/keeping-the-wheels-on-the_b_392416.html)
Obama has also failed to pass a single major piece of truly progressive legislation. This is most clear in the area of health care.
The willingness of the White House to swap the expansion of Medicare in exchange for Joe Lieberman's vote on cloture reveals
how far the administration has come from what many progressives hoped health care reform would look like. The White House
has compromised away a compromise, expanding Medicare, which was itself a compromise from the public option idea, which
was an early compromise away from a single payer approach. There is, of course, nothing axiomatically wrong with
compromise and pragmatism, but a presidency driven by compromise and pragmatism must be judged by the results it produces.
So far, in both foreign and domestic policy, Obama cannot really point to any concrete and positive results, only trends.
Politically, pragmatism without tangible results puts Obama in danger of backing himself into a corner. Swing voters will
increasingly, fairly or not, judge Obama on outcomes. If jobs do not come back and if success in Afghanistan continues to be
elusive, they will not evaluate him kindly. A president can survive this if he still has a strong political base, but for Obama this
base is in danger of eroding. Reports that African American members of Congress are increasingly dissatisfied with President
Obama suggest that this has already begun to happen.




                                  For every action there is an equal and opposite government program – Bob Wells
USF Debate 2010-2011                                                                                           Case Neg – Startup Visas
Gonzo                                                                                                                               4/9


                                             FUNDING PIC – SOLVENCY

The CP’s new startup visa solves the case better than the plan’s modification to the EB-5 program
Litan Senior Fellow Economic Studies Brookings ’10 (Robert E.-, June 29, Testifying before the U.S. Joint Economic Committee,
―Fueling Local Economies: Research, Innovation and Jobs‖,
http://www.brookings.edu/testimony/2010/0629_research_innovation_litan.aspx)
If any version of the green card is viewed to be too politically risky, there is an obvious fallback that should not be, and that is to
create a new ―startup visa.‖ Senators Kerry and Lugar have proposed such a plan that would grant a temporary visa to entrepreneurs
who receive at least $250,000 in outside financing and hire at least one non-family member, and then a green card once their
enterprises employ at least five non-family members or earn at least $1 million in revenue. This is a good first step and certainly far
better than the current EB-5 visa which is available only for up to 10,000 individuals who bring at least $1 million into the country and
invest it in companies here (the threshold is $500,000 if the investment is in an economically distressed area). Even then, the EB-5 is
only temporary, since it is valid for just two years.
But an even better entrepreneurs’ visa, in my view, would be based solely on jobs created here and not have any investment
requirement, which many immigrants may not be able to meet. After all, what could be more important, especially in the current
economic environment, than to encourage the formation of firms that actually hire Americans? Immigrants who thus establish
enterprises here should receive an immediate temporary visa, and then a time-limited visa, perhaps for five years, once they hire at
least one non-family member. As in Kerry-Lugar, the visa should convert to a green card once the immigrant-entrepreneur hires some
larger number of family-members (say five or 10).
There is an ample supply of immigrants who might qualify for a lengthened startup visa: the 1 million skilled foreign workers who are
here now on temporary H1-B visas who otherwise must go home after six years, as well as the roughly 60,000 foreign students who
each year earn a degree at an American university. These are far larger numbers than the relatively few individuals who could
qualify for entry under the Kerry-Lugar proposal.




                           For every action there is an equal and opposite government program – Bob Wells
USF Debate 2010-2011                                                                                           Case Neg – Startup Visas
Gonzo                                                                                                                               5/9


                                          FUNDING PIC – POLITICS LINK

Startup visa is shortsighted – only the counterplan can win over voters
Wall Street Journal 3/7/2010: Visas for the Next Sergey Brin.
http://online.wsj.com/article/SB10001424052748704231304575092112141325800.html
It is also true that with a $250,000 equity threshold, a startup visa would screen out all but those entrepreneurs who are most likely to
build big companies. But that is a poor, short-sighted rationale.
Google was founded by Sergey Brin, a Russian immigrant, and American Larry Page by borrowing funds from their own credit cards.
Why on earth would we want to create an entrepreneurs' visa that couldn't let in the future Sergey Brin?
Now is not the time for timidity. I have faith that a large majority of Americans—even those worried about too much immigration—
will welcome any program that can create a lot more jobs without spending more federal money. We can ill afford a "lost decade," like
Japan's floundering economy of the 1990s. And unemployed Americans can ill afford to wait at all.




                           For every action there is an equal and opposite government program – Bob Wells
USF Debate 2010-2011                                                                                          Case Neg – Startup Visas
Gonzo                                                                                                                              6/9


                                                TECH INNOVATION F/L

No qualified investor invests in a tech company – plan will just be a bunch of real estate projects
Pascal-Emmanuel Gobry (Paris-based entrepreneur) 3/22/2010: The Startup Visa Act Must Be Stopped.
http://www.businessinsider.com/why-the-startup-visa-is-actually-a-really-bad-idea-2010-3
John Kerry's letter endorsing the Act doesn't make clear who "qualified investors" are. Paul Graham initially suggested that business
angels and VCs co-opt each other in a cabal of successful business angels. That would be bad enough: when Jeff Bezos started
Amazon, every VC he initially pitched turned him down, and he started the company with money from friends and family, not
qualified investors (Kleiner Perkins invested later, when the company was already on a wildly upward trajectory). But what's most
likely is that "qualified investors" means what it already means: anyone with a net worth of over a million dollars or annual income in
excess of $200,000. So look forward to most of these visas being snapped up for real estate projects and the like — not the cool tech
startups the Startup Visa guys envision.




                          For every action there is an equal and opposite government program – Bob Wells
USF Debate 2010-2011                                                                                           Case Neg – Startup Visas
Gonzo                                                                                                                               7/9


                                                       SOLVENCY F/L

Declining venture capital markets hurt startup’s ability to generate jobs
All – IT Business Edge – 8/30 Ann, Startups Alone Can't Save U.S. Economy, http://www.itbusinessedge.com/cm/people/AnnAll
Wadhwa makes some valid points. But startups' ability to generate jobs may take a hit with the continuing decline in the venture
capital industry. According to a recent MercuryNews.com story, the latest report from the National Venture Capital Association
showed that 10-year returns on venture capital investments turned negative at the end of 2009 and nose-dived during the first quarter
of 2010. Venture capital's decline is largely due to startups' increasing reluctance to take their companies public.
 Many startups seemingly now operate with the intention of being acquired by larger companies like Google or Cisco instead of going
public. But does that create jobs? I'd argue that many acquisitions involve cutting jobs, not creating them. In at least some cases, big
companies don't do much of anything with the startups they purchase. Google in 2005 acquired Dodgeball, a provider of location-
based social-networking software for mobile devices. Sounds a lot like Foursquare, right? One of Dodgeball's founders, Dennis
Crowley, went on to found Foursquare after a two-year stint working for Google. The search giant folded Dodgeball into its Google
Latitude service.

Startup visa fails – its not enough and most immigrants won’t get venture financing
Wall Street Journal 3/7/2010: Visas for the Next Sergey Brin.
http://online.wsj.com/article/SB10001424052748704231304575092112141325800.html
A bipartisan bill that would begin to do just that was introduced on Feb. 24 by Sens. John Kerry (D., Mass.) and Richard Lugar (R.,
Ind.). Their "Startup Visa Act" would create a new, two-year visa for immigrant entrepreneurs whose firms attract at least $250,000 in
financing from American angel investors or venture capital firms. The visa would become permanent if the firm adds at least five non-
family employees, attracts $1 million in financing, or earns $1 million in revenue.
This plan has a solid grounding in reality: Immigrants have founded about 25% of the technology companies in the United States,
which employ tens of thousands of Americans. But it's a small step compared to the enormous unemployment challenge this country is
facing. The new visa is tied more to money—especially at the outset—than it is to job creation. This just sets the bar too high.
Consider these statistics. Roughly 600,000 businesses are started in the U.S. each year, and the spotty data suggest that less than 1% of
them receive angel or venture capital investment of $250,000 at the outset. Further, as investor Paul Kedrosky has demonstrated, only
16% of the fastest growing companies here receive any venture financing.
What that means is that relatively few immigrants would be able to take advantage of the new visa. And commensurately far fewer
jobs will be created than we need now and for the foreseeable future.




                           For every action there is an equal and opposite government program – Bob Wells
USF Debate 2010-2011                                                                                         Case Neg – Startup Visas
Gonzo                                                                                                                             8/9


                                              POLITICS – BIPARTISAN

Startup visa is bipartisan even though immigration reform as a whole is unpopular
Lena Dirbashi (Staff Writer for the Dallas Business Journal) 5/13/2010: Land of Opportunity. http://www.portfolio.com/companies-
executives/2010/05/13/startup-visa-aimed-at-immigrant-entrepreneurs/index.html
New legislation coming out of Washington could provide a shortcut for foreign-born entrepreneurs. Ruzo says the proposed changes
will create U.S. jobs, bring money to North Texas, and open up a bridge for foreigners to invest in America.
Introduced by U.S. Senators John Kerry and Richard Lugar, the law would allow immigrant entrepreneurs to secure visas if their
startup can raise $1 million in investment, or generate $1 million in revenue, and create five full-time jobs within two years.
Called the Startup Visa Act of 2010, the legislation requires the entrepreneur to initially raise $250,000, of which $100,000 must come
from a qualified U.S. angel or venture investor.
The Startup Visa Act has enjoyed bipartisan support, despite a nationwide immigration dispute, as well as the backing of 160 venture
capitalists from across the country.
―Global competition for talent and investment grows more intense daily, and the United States must step up or be left behind,‖ Kerry
said in a statement.
The Startup Visa Act would create a new type of two-year visa called an EB-6. It’s a hybrid of existing visas, the H-1B, a temporary
visa for immigrants working in high-tech or other specialized fields, and the E-B5, also known as the investor’s visa, which provides a
method of obtaining permanent residence for foreign nationals who invest at least $1 million and create at least 10 jobs in the United
States.
Supporters say the startup visa would create jobs and increase America’s global competitiveness, rather than helping immigrants
compete for existing ones, which is what many argue H-1B does.




                          For every action there is an equal and opposite government program – Bob Wells
USF Debate 2010-2011                                                                                         Case Neg – Startup Visas
Gonzo                                                                                                                             9/9


                                  POLITICS – UNPOPULAR (CONGRESS)

Plan unpopular – its an immigration bill and it will take fire no matter what from everyone worried about losing jobs
Erick Schonfeld (Co-Editor of TechCrunch) Feb 24, 2010: The Startup Visa: Create Jobs, Get A Green Card.
http://techcrunch.com/2010/02/24/startup-visa-jobs-green-card/
A bill introduced today in the Senate by Democrat John Kerry and Republican Richard Lugar proposes a new type of visa for
immigrants who create startups and jobs in the U.S. A similar proposal is part of an immigration reform bill in the House. The Startup
Visa has been controversial and will no doubt draw fire from anti-immigrant forces and xenophobes. But if we are going to be giving
away visas, giving them to people who will help build the U.S. economy and create jobs is hard to argue against.
The Startup Visa Act of 2010 would create a two year visa for immigrant entrepreneurs who are able to raise a minimum of $250,000,
with $100,000 coming from a qualified U.S. angel or venture investor. After two years, if the immigrant entrepreneur is able to create
five or more jobs (not including their children or spouse), attract an additional $1 million in investment, or produce $1 million in
revenues, he or she will become a legal resident.
The bill would carve out a new ―EB-6″ class of visas from the existing ―EB-5″ class of visas which has a higher threshold for
becoming a legal resident. So it’s not really that radical. The EB-5 requires immigrants to invest at least $1 million in the U.S. and
employ ten people.
The Startup Visa sends the right message to prospective immigrants: create jobs, get a green card. A group of 160 venture capitalists
and angel investors support the bill, including Paul Graham, Brad Feld, Fred Wilson, Dave McClure, Ron Conway, Mike Maples,
Reid Hoffman, Chris Sacca, Jeff Clavier, Bijan Sabet, Josh Kopelman, and Chris Dixon. If you agree that the Startup Visa is a good
idea, you can find ways to support it here and here.




                          For every action there is an equal and opposite government program – Bob Wells

				
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