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Impact of Trump Win on Technology

Go to Dice.com or any other search portal and look for the open positions: 2,000 database administrator jobs, over 10,000 Cloud-related jobs. Developers, designers, technical writers in India or the Czech Republic make one-fourth to one-tenth of what similar jobs pay in the US and the work often is just as good. You can’t impose import tariffs on code, documents or designs.

1) Cash will move as tech companies start investing.

Tech corporations hold about half of the $1.77 trillion in cash held by U.S. non-financial companies, according to a recent report by Moody’s. The report warned that without a tax reform that reduced the negative financial consequences of repatriating money to the U.S., offshore cash levels will continue to rise. The top five holders of corporate cash include Apple, Microsoft Corp. (MSFT), Alphabet Inc. (GOOG), Oracle Corp. (ORCL) and Cisco Systems Inc. (CSCO). Current rules and regulations discourage companies from investing cash into mergers and acquisitions or research and development.

 

2) New tax policies could hurt big tech.

Trump has criticized big tech firms such as Apple and Amazon.com Inc. (AMZN), saying the latter is “getting away with murder,” taxwise. Trump has also promised to veto trade agreements relevant to tech sector growth such as the Trans-Pacific Partnership agreement, which is backed by the Silicon Valley Leadership Group.

 

3) A Trump administration would restrict the supply of skilled workers who enter on H-1B visas.

There were 65,000 H-1Bs visas issued this year. A lack of cheap, foreign talent would increase the cost of labor for US tech businesses.

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