Open letter to US Senators on the Ex-Patriot Act

Dear Senator XXX:

I urge you to reject the proposed legislation titled "The ex-PATRIOT Act" put forth by Senators Schumer and Casey, as this piece of legislation is very concerning for the following reasons:

Foremost, it will only accelerate capital flight and discourage future investors and entrepreneurs from coming to America. Every attempt to hold on to the past is an obstacle to improving the future. The sad truth is that as the economy has globalized and hundreds of millions of people worldwide have entered the middle class, America's stock has dropped. I know that because I frequently travel internationally, both for business and pleasure.

Twenty years ago, Americans were welcomed with open arms almost everywhere they went. The US passport was considered the gold standard of travel freedom. That, however, has completely changed. Consider Brazil, perhaps the greatest success story over the last decade. While Europeans travel to Brazil visa-free, US citizens must obtain a visa prior to travel at a cost in excess of $100. Americans aren't even offered the convenience of paying upon entry into Brazil.

This is highly emblematic of the wrong-headed protectionism that comes out of Washington, DC. America's strength comes from its willingness to challenge the status quo, take risks, innovate and build a better future. In a global economy, these innovations can be developed anywhere. Santiago, Hong Kong, Hyderabad. 

America was a place where investors, entrepreneurs and human resources could readily bring financial, intellectual and human capital together to create revolutionary products and services. While the rest of the world is learning that, and learning quickly, it appears that America is forgetting it. 

In the Research Triangle Park, we are seeing technology experts return to their home countries because while the opportunities have improved in their home land, the heartache associated with staying in the US has only increased. I am sure you know this because you surely speak to executives and entrepreneurs from the area. My firm, small as it is, has had to outsource some software development, not for cost reasons, but simply because we could not find the necessary skills in the RTP, at any cost.

Another, and far more pernicious, effect is how Americans will respond to this precedent. While the most atavistic Americans may say "good riddance" as they wistfully ponder on a greater past, many successful middle-class Americans will see the writing on the wall. What starts out as the "millionaire's comeuppance tax" rapidly expands to de-facto capital controls for everybody, resulting in more productive Americans headed for the exit.

This isn't speculation, as it is already occurring. This wrong-headed legislation by the two senators will only accelerate that, making it even harder to compete globally. In turn, the work force balance will increasingly shift to those with less competitive skills. This argument is bolstered by the fact that despite a persistently high unemployment rate, there are careers and industries that are experiencing significant labor shortages. The regulatory environment is encouraging people to retain skills that the market no longer demands while punishing success in industries for which the market is clamoring. This philosophy is economic suicide.

Supporting such legislation may make for good populist sound bites on the evening news, but its effect will only be to place America at an even greater competitive disadvantage. I urge you to vote against this stillborn legislation.

Sincerely,

Pete Kofod