The taxes would not have to be paid for seven years, or until some triggering event -- such as the company going public or a stock buy-back, explained Ways and Means Committee Chairman Kevin Brady of Texas, who praised the bill. He cast it as a way to help start-ups and the workers behind them "thrive," because at first these companies may not have money to pay large salaries. This would allow them to still attract top talent. He said the bill is a "bipartisan solution" and an innovative one.
"The tax code should not stand in the way of developing new life-changing technologies," said Republican sponsor Erik Paulsen of Minnesota.
But Democratic views changed, said Crowley, when the cost of the bill became clear, and he and Eshoo were rebuffed in an attempt to get House Republicans to provide offsetting cuts.
"So here we have a combination of good policy and irresponsible fiscal policy," said Eshoo. "When are we going to stop charging things to the national debt?"
"This could have been bipartisan and you could have passed it on a voice vote," she added.
This article was provided by Bloomberg News.